Best 10 Banking Trends to Watch in 2022

The unpredictable conditions of today’s quickly changing globe have not spared banking. From the COVID-19 epidemic to the rise of artificial intelligence to new cybersecurity concerns, banks continue to face significant challenges that are altering their business models.
We saw significant changes in the banking industry in 2021, but we anticipate even more significant changes in 2022.

Here’s a sneak peek at what we may expect from banks in 2022.

10 Banking Trends to Watch For in 2022

No one can forecast the future, but we’re always looking at financial trends to see what’s next. Here’s what you can expect in 2022:

1. A Shift in APYs

APYs (annual percentage yields) at both banks and credit unions decreased during the outbreak. We track the finest savings accounts and checking accounts every month, and APY is a big part of our process.
Prior to the epidemic, certain institutions, particularly internet banks, were providing APYs of up to 2%. When COVID-19 brought the economy to a halt, rates fell. While the economy has improved over the last year and a half, APYs have yet to fully recover.

Sure, the finest online banks frequently brag that their APYs are ten times higher than the national average, but when the national average is under 0.05 percent, that’s not that spectacular.
We expect APYs to gradually recover to pre-COVID levels in 2022, although it may take more than another year to reach those historic levels. Let’s not forget that we still have a second winter to deal with during this epidemic, with a Delta variation that might signal disaster for a wide range of businesses.

2. A Shift in APRs

On the other hand, purchasing a property is likely to become much more expensive in the future, so it’s essential to study how to buy a house now. For more than a year, it’s been a seller’s market, with home values at all-time highs. While this appears to be reducing as supply grows, borrowers are unlikely to receive better terms from their banks.
Mortgage interest rates are expected to begin to rise, according to economists. As a result, while home prices may remain stable, the amount you’ll pay for those borrowed funds may climb.

3. No Shift in Credit Card Interest Rates

There is one final percentage to be aware of when dealing with banks: credit cards. Credit card interest rates are anticipated to remain stable, unlike bank account APYs that are steadily increasing and home loan APRs that are rapidly increasing.
This is both a good and a terrible thing: It’s good because it implies interest rates won’t rise any more, but it’s bad because they’re already ridiculously high.
Credit card rates were over 16 percent at the start of the fourth quarter of 2021. That is likely to hold true until 2022. Knowing how to pay off credit card debt will be just as important next year as it was this year.

4. Elimination of Overdraft Fees

Overdraft fees are still one of the most criticized bank fees, with critics claiming that they are aimed at the poor. Those who live paycheck to paycheck are more prone to overdraft by accident (they pay more than 80% of overdraft penalties), and the additional fee makes it even more difficult for them to escape poverty.
In other words, overdraft fees exacerbate poverty.
Overdraft fees cost Americans $12.4 billion in 2020 alone. It’s a billion. With the letter B.

However, Ally Bank, America’s largest digital bank, said in 2021 that it will no longer charge an overdraft fee. Alliant Credit Union, not to be outdone, followed suit a few months later. Then, in December, Capital One, the country’s sixth largest bank, eliminated all overdraft fees, foregoing $150 million in yearly revenue.
So, who’ll be next? Can we expect additional national bank chains to remove their overdraft fees in 2022 as large brick-and-mortar banks struggle to compete with the introduction of online banks, who are leading the charge in cutting overdraft fees? Take a look at our list of the best online banks for 2021.

Even banks that opt not to eliminate their overdraft fees may face more pressure to change their policies. Many banks have begun to implement features such as 24-hour grace periods, multiple linked accounts, and other solutions to make overdrafts a last resort for consumers.

5. Branches Are Cool Again

While in-person branch visits have been steadily declining, a few major organizations are attempting to revive the heyday of branches by turning them into entertaining hangouts with more digital offerings, such as interactive kiosks and digital financial education modules. Bank branches are effective marketing tools because they allow banks to contact customers and deliver highly individualized financial education. As leading firms continue to embrace digital financial tools, expect more investment in employee training and branch redesigns.

6. Digital Is Here to Stay

Financial marketers are altering bank marketing tactics to explore and put a larger emphasis on engaging with clients through more digital channels, even as the in-branch experience becomes more digital to continue to attract customers. According to Forrester, digital marketing spending in the United States is expected to exceed $120 billion by 2021.

7. Data: Use It Like You Mean It

Financial marketers have no shortage of customer data at their fingertips — from purchase histories to demographics and more — but marketers who use that data to create meaningful segments and targeted campaigns to better serve their customers and grow revenue are driving growth in financial institutions. To put it another way, using data to power your bank’s marketing initiatives doesn’t require you to become an expert in machine learning or artificial intelligence (AI).

8. The Power of Personalization

They’re like peanut butter and jelly when it comes to data and personalisation. Personalization becomes simple…and profitable…when you have the proper data at your fingertips. In fact, one bank’s individualized financial education programs resulted in a $2 million increase in product sales (opens in new tab).

9. Married to Customer Engagement

How many times do marketers mention consumer interaction in a day? There’s a rationale for the constant focus, after all. We know that engaged consumers are loyal customers, and that loyalty equals higher revenue over time. Existing customers, after all, spend 67 percent more than new customers.

10. Content Is [Still] King

Content will continue to be a vital tool for financial marketers to keep their clients engaged and strengthen a sense of trust and brand loyalty. EVERFI’s digital financial education modules are a terrific method to give your consumers relevant education without having to create it from scratch.