Top 10 Banking Trends by financial expert Farnoush Farsiar

Top 10 Banking Trends by financial expert Farnoush Farsiar

The covid-19 pandemic has affected all our lives, in some way or another. The global banking sector was not at all an anomaly.

Farnoush Farsiar, an expert in finance and founder of the firm Plato Capital, describes how the banking sector looks today.

She explains how covid forced the financial industry to find unconventional and innovative solutions to fit into the new reality. And she tells us what is next to come.

Banks had to accelerate their digitalization during Covid to meet the market’s needs

Observing the current state of the banking sector, Farnoush Farsiar offers two different perspectives. The first is reactive.

It refers to changes in the banking sector due to some moderate or extreme change in the financial scenery.

This is related to what the finance and banking sectors have had to do to react to the pandemic. It is headlined by the digitalization of nearly all services once handled by friendly (or not so friendly) bankers.

This change comes from both external and internal factors, such as increased competition, regulation, customer expectations and new technologies, among others.

How the financial market had to change its habits, claims Farsiar, is beyond words. The banks were forced to deliver the same services in a way that acted upon strong covid restrictions.

Investment consultation and regular financial transactions have transformed into the digital sphere. According to Farnoush Farsiar, the way covid cornered the banking sector into this swift change is what ultimately defines it today.

The other stream that shapes today’s banking sector is more longstanding. The banking sector had to partake in synergetic effort with all other industries in the global market.

For Farnoush Farsiar, the green revolution is a prime example of a synergetic effort. Banks are being called to the duty of saving the planet by focusing on green investment opportunities.

These are the top 10 trends in the banking sector, according to Farnosuh Farsiar

For Farsiar, the top trends in the banking industry are not those with the most capital. It’s those who symbolize innovation and progress that will dominate the world of finance and banking.

Gender Lens Investing – considering gender

For Farnoush, the importance of gender lens investments is never underestimated. Farnoush Farsiar describes gender lens investing as something that will “create a more equitable and prosperous world for all.”

Gender lens investing is a strategy that aims to make economies more inclusive and sustainable. It achieves that by considering gender dynamics when facing potential investment opportunities.

The Green revolution – going paperless

Farnoush Farsiar believes that sectors in today’s market cannot overlook what is already an apparent danger- sustainability. Banks, who were infamously reluctant to invest in paper-saving platforms, are now considered main characters in the effort to revamp.

It will not be possible for other sectors to act accordingly if they don’t see other big names do it. With banks moving many of their activities into apps, Farsiar hopes other industries will soon follow suit.

Many new ways to pay

The payments revolution was what struck Farsiar as an “out of the blue” phenomenon. Today people are looking for the easiest ways to pay for transactions, and banks need to keep up. 

AI is taking over

Artificial intelligence has taken a significant step toward taking over the banking sector. There will be a significant reduction in the need for finance industry employees within a few years.

Talent shopping, a race to attract the best talent

Before AI takes control over the employees of banks, today, there is a dire need for talented, young minds. They are critical for the finance sector to keep its efforts going. 

Cryptocurrency is going strong

By now, claims Farsiar, banks have already realized that crypto is here to stay, whether they like it or not. There must be a way to promote synergy between these two financial parallels.

Costumer interface, the client matters

Banks have started putting more of an emphasis on relations with customers. Farnoush claims it is heavily connected to the realization that the banking sector is filled with competition. “Competition is the key to a nice heart.”

Strive for innovation

Farnoush Farsiar, a strong advocate of innovation, claims that the hint for something new is always around.

Banks growing internationally

The banking sector has forever strived for aggressive and complete expansions. Banks that have the most gravitas are those that are willing to expand beyond borders.

Fees, hiding days are over

In the effort for complete transparency, Banks are now forced to expose the intention behind different client fees.

How can banking professionals adapt, according to Farnoush Farsiar

When asked, Farsiar replied with a straightforward solution, only comprised of two words: “stand out.” Farsiar preaches that the key in this “dog eat dog” world is going in the opposite direction.

She claims that approaching investments in which you believe would promote what you believe, and that will pay out. The reason why the banking industry is still relevant today is that it keeps continually upgrading.

For Farsiar, that could never be a reality if those who do it daily wouldn’t constantly evolve and innovate.