Drive process efficiency by automating operations
In 2022, venture capital funding drove strong growth among emerging payments companies and fintechs alike. But many firms' operations grew inefficiently. Already, the market has upended. We expect to see market contraction and consolidation as well as banks acquiring fintech and payment portfolios.
Those nascent payments companies and fintechs that survive the reckoning will focus on profitable, sustainable growth. They'll work with external partners to improve operational efficiency and ensure that they can provide the seamless, automated customer experiences they're known for, even when things go wrong. For example, they'll look to
to allow a partner to execute certain processes end to end on their behalf, such as payroll management or accounting.
Process efficiency will also be one of the ways that banks increase their own resilience this year. The cost-of-living crisis combined with a tight labor market has led to increased costs for corporates; notably, fast-rising wages at banks. To deal with the problem, financial institutions will look to do more with less by streamlining and automating their existing processes. For example,
Santander UK increased customer satisfaction by 5% and reduced its cost-to-income ratio by 10% by accelerating key business processes,
such as its customer onboarding and corporate account closure processes, using automation and artificial intelligence.
If you missed our first two predictions, you can check them out here. Stay tuned for our next two predictions in this series.