Page 21 - Banking Finance February 2021

PRESS RELEASE

SunTec Names Top Trends for Banking and Financial Sector in 2021

SunTec, the world’s #1 relationship-based pricing and billing move from benevolence [mainly Government enforced] in
company, today announced six key trends for the global 2020 to prudent risk management in 2021. Consequently,
banking and financial sector in 2021. The trends are distilled banks sitting on huge and unproductive cash reserves, while
from SunTec’s conversations with its banking and financial also facing the prospects of lower or near-zero interest rates
services customers located around the world. will see thinner margins. Institutions will need to invest in
rebuilding trust and most importantly in technology to
SunTec has over 100 banking and financial services clients
augment revenue, as they prepare to launch newer and
in more than 45 countries. The company’s clients include
seven of the top 25 banks in the world by assets. more innovative products – delivering seamless customer
experience through third-party interconnected providers in
Nanda Kumar, Founder and CEO of SunTec Business Solutions
the background.
said, “2021 is going to be a very busy and transformative
year for the banking and financial services industry around 3. Business models will see a significant change
As banks look to reduce costs, automate, and simplify their
the world. Banks will have to reinvent their business and
business in order to gain more efficiencies, the role of bank
revenue models on account of the recent disruption caused
branches will likely need to change post pandemic. One
by the pandemic. A fallout has also been falling interest
rates – in some countries going into negative – and possibility will be to create ‘experience centers’ where
tightening of the regulatory framework.” customers can get intelligence and transact to build their
own wealth portfolio. Banks will also invest in getting better
As per SunTec, the key trends are: customer intelligence to enable this transition and

1. Asia will lead global recovery from the pandemic personalize their offerings for customers. Consequently, as
An economic turnaround is on the horizon for most banks gain valuable intelligence there will also be a
significant economies around the world. The Asian proliferation of banking apps, enabling banks to identify
economies including India will go into recovery and positive profitable businesses and offer them credit. For instance,
growth come the new fiscal year starting April 2021. Being in India, we have a rich heritage in handicrafts, and
cognizant of the fact that India and China have been coping therefore have the potential to build an Amazon-scale
with the pandemic better than many other countries, platform just for local handicrafts. This can be done within
economic recovery is expected to pick up, notwithstanding the ecosystem connecting buyers and sellers effectively.
newer strains of the virus now entering the market. Further, Given the demand for better service, banks will have to up
the positive outcomes from the vaccine mean that India their game in providing seamless digital banking
along with most other countries will most likely reach an experiences. Transactions for instance to open accounts will
epidemiological end to the pandemic (or herd immunity) by have to reduce significantly as also routine activity that
the end of 2021 or early 2022. Also, banks in countries like customers perform. This will be enabled by smarter
India will continue to implement MSME friendly policies to technology that is well integrated.
hasten the recovery process, in recognition of the fact that 4. Remote collaboration will determine successful
this segment contributes almost a third to the overall GDP, workplaces
and further provide livelihood to well over a hundred million
Over the next decade, enterprises will improve their
people.
capacity to work remotely. As 'work anywhere’ and
2. Banks will be forced to find alternate revenue sources collaborative models become popular, banking and financial
The honeymoon of cheap loans may soon end as recovery services organizations will start pulling together teams and
happens, but loan demand will remain poor through the resources from different parts of the country, or even the
better part of 2021. Corporates and the general public will world. Remote work will allow front-end workers and even
be wary of borrowing in adverse conditions. Further, a much customer care representatives to stay settled in their
more stringent regulatory regime is likely to prevail to hometowns or nearby hubs.
mainly ensure that customers are protected. As a result, 5. Partnerships will determine the future of banks
banks will be forced to re-evaluate their loan exposures to
Platformification will become even more important in 2021,
customers and even their customer relationships, as they
to offer more credit and flexible payment options with

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