As we approach the end of the year, we thought it’d be a great opportunity to check in and see how we got on with the predictions we made this time last year, and to look at the key themes that will shape our industry in 2023 and beyond.
We hope you enjoy the read, and we wish you very safe and happy holidays from everyone here at PEN.
A brief look back at 2022…
In keeping with tradition, we thought we’d reflect on the predictions we made for 2022 and see how we got on…
What we got right…
Thankfully, we are able to talk about Covid in the past tense, but the changes it forced firms to make are still being embedded.
We predicted one of those changes would be the adoption of new Ways of Working and the investment in remote working technology. This has indeed been a focus for the majority of organisations across banking, insurance and other industries and a trend that will continue into 2023.
We also predicted an increased visibility of ESG in organisation’s strategies, and in their operations, product, and sales decisions. This has certainly been the case, with ESG now at the centre of many bank and insurer objectives.
As with most years, we said that Banks and Building Societies would continue to focus on identifying opportunities to cut costs in what would be increasingly tough market conditions. This has absolutely been realised with thousands of branch closures in recent years and this continued in 2022 as Banks and Building Societies continue to evolve their digital offerings underpinned by AI, RPA and better data management.
We also saw the regulators continue to put pressure on 3rd party suppliers to meet minimum resilience standards and to carry out resilience testing.
What we nearly got right…
The mortgage market remained as competitive as ever but with the significant challenges the global economy is facing, we didn’t see lenders step into higher risk areas for better returns.
Change investment remained trimmed down for 2022 but not to the level we predicted, as we saw firms investing in more than just legal and regulatory commitments, digital transformation, and data.
What we got wrong…
No one gets everything right, and we’re no different! Three of our predictions didn’t come to fruition.
We expected to see interest rates staying low, which clearly isn’t the case! There have been hints at possible Merger & Acquisition activity, but not at the headline-grabbing level we predicted.
Lastly, we didn’t see as much collaboration as predicted between banks, building societies, and Fintechs.