According to Paul Inouye, digitalization is one of the biggest trends impacting the banking industry. Across the board, these trends involve digitalization and digital tools, opening the door for new and unexpected players to enter the banking space. These players are generally large technology companies or start-ups with extensive digital tools and know-how. They offer many banking services that are faster, more convenient, and cost-effective. Let's take a closer look at five of these technologies.
Customers increasingly prefer mobile banking, and they expect seamless, multi-channel customer service. In 2022, banks will seek to offer omni-channel banking services that allow customers to initiate a transaction through any channel, rather than the traditional bank branches. Banking services will become more seamless if customers can initiate a transaction from any device, at any time. While this is not a new concept, many banks are hesitant to implement it.
Artificial intelligence has many applications in banking. Machine learning can help banks improve customer service and provide individualized tips based on customer behaviors. Banks can use machine learning to protect against fraud and identify trends and anomalous behaviors in customer behavior. Machine learning technology is also being used in security. With so much data available, AI can identify suspicious activity and prevent fraud. These technologies are essential for the future of banking.
Paul Inouye described that facial recognition technology can be a game-changer for banks and financial institutions. With the advent of smart devices, users no longer need to visit a physical bank to obtain banking services. Embedded banking platforms, such as Uber, are enabling platforms to deliver banking services to customers. Big tech players are also deepening their offerings to meet these demands. The evolution of technology is speeding up the evolution of connected banking.
While payments modernization is a big trend in 2022, it is also one of the broader trends. Banks are increasingly leveraging payments technology to generate non-interest revenue. BaaS infrastructure providers are rapidly becoming popular, and most observers expect this trend to continue. For example, Amazon and Google are now building payment systems to make payments. And if you're an online-only bank, you can integrate your payments through their payment system.
With all the changes happening in the digital age, customers are looking for personalized experiences in every aspect of their life. The latest trends in digital technology will transform the banking industry and create a more personalized customer experience. Consumers are demanding more than ever before and expect to receive relevant, timely, and personalized experiences from banking companies. Artificial intelligence, or AI chatbots, will make it easier to cater to their needs, as well as save time and money.
Blockchain technology is relatively new and promising in the coming years. A recent Deloitte survey revealed that 76 percent of survey respondents believe that digital assets will eventually replace fiat money. Blockchain allows companies to secure customer data, verify transactions, and create contracts. Using blockchain technology, banks can offer more secure services that meet the needs of customers. They can also scale their businesses. This means that more financial institutions can start focusing on delivering better customer experiences.
A key trend in 2022 is open banking. Open banking allows banks to share customer data with other companies for new services. For example, an open banking API allows an app or website to access a bank's database. The benefits are enormous: it provides greater transparency for consumers and allows financial institutions to provide client-centric services. By 2022, the open banking market is expected to be worth $43 billion. And 90 percent of financial leaders expect open data to boost organic growth.
Paul Inouye disclosed, another major trend is embedded finance. Embedded finance is emerging as an increasingly popular option for consumers and small businesses. These new financial services providers seek to provide their products at the most convenient point for consumers. Home contractors, veterinarians, and accountants are all potential venues for providing banking services. Further, robo-advisers are expected to become a valuable addition to financial institutions.
A key trend in the financial sector in the future is the use of big data, including structured and unstructured information. These databases provide enormous analytical potential for financial institutions. Modern financial technologies allow for the integration of Big Data and complex risk assessments. These technologies are transforming the way people interact with financial services, including banking. It is no longer necessary for financial institutions to settle for expensive closed networks. By using these technologies, customers can access and use information they need in the easiest and fastest way possible.