Banking is becoming more convenient for consumers but experts believe there is more to come in 2021 as the industry continues to innovate.

Nonbank Inclusion

2020 posed challenges for banking as fewer in-bank transactions were conducted owing to lockdowns - but experts predict improved services for consumers with the rise of inclusivity.

While some banks already offer services that include nonbanks, it is expected banking will open further opportunities for partnerships with nonbank products.

Nonbank services expected to continue being incorporated are PayPal, TransferWise, Google Pay, Payoneer, Stripe and remittance centers.

The inclusion of nonbank providers in the sector is expected to reduce costs while creating added competition that should drive banks to integrate new products and services.

Digital Banking

Like many other industries, banking realized digitized solutions will continue to shape future services and products.

As the industry explores improved digital solutions, analysts predict banks will focus on speed of service and channel uniformity moving into the new year.

In developing countries, speed will be the center of improvements as consumers seek increased convenience as they make payments or conduct transactions online.

Banking patrons are also expected to seek uniform and consistent services whether through physical banks, websites or mobile apps.

Overall, subtrends projected for 2021 in digital banking should help enhance the digital experience.

Predictive Personalization

With digital banking expecting to see a boost, analyst project predictive personalization through the use of artificial intelligence will be big.

Banks will incorporate advanced analytics to provide customer-tailored websites that should up the ante in customer service and assistance.

Finally, machine learning integration is expected to provide customers with real-time financial recommendations and other personalized services. Analysts said there will be challenges ahead but banks should pursue top-quality customization to emerge on top.

The boom in predictive personalization echoes Accenture's recent data that found 91% of consumers saying they are more likely to patronize brands that reward them and providers that are aware of their digital needs.

Cost-Efficient Pressures

COVID-19 rocked finance and banking as a result of the attendant economic crises - indicating a similar trend in the coming year.

Industry experts are expecting pressure to mount on banks as consumers seek lower interest rates. Financially struggling companies with cash flow problems will be among the most active banking customers in 2021.

To help banks navigate a rough economic environment, analysts said changes in business models should center on streamlined operations and intelligent automation.