The banking sector has eagerly embraced the rapid changes in banking technology. As 5G networks spread around the world and technology advances – and robotic process automation (RPA) takes over, banks will be able to make exciting collaborations and also expand their services beyond what they are traditionally known for.
Even though blockchain provides transparency, reduces the time and costs of transactions, and improves cash flow, it hasn’t been as readily embraced by the banking industry as expected. In order for the full benefits of blockchain to be achieved, the technology requires organizations to collaborate. Data sharing and trust appears to be the biggest obstacle for now.
The areas within fintech where blockchain is most likely to be adopted are in processing remittances, KYC/ID fraud prevention, and risk management.
Faster internet everywhere
Mobile data is about to become 10 times faster and more stable over the next two years with the introduction of 5G networks. Wi-Fi 6 is improving indoor connectivity and offers 3 times faster internet. Better connectivity, across all mobile and wired connections is something that all industries need to exploit.
Seamless connectivity and a faster internet will allow banks to improve their infrastructure, security and offer better customer experiences because of faster processing times.
RPA increases the need for human skills
The rise of banking technology, especially Robotic Process Automation (RPA) has increasingly raised fears that many jobs will be lost.
According to Avi Ben Ezra, CTO at SnatchBot, “Jobs that previously existed will become obsolete, since banking technology is starting to replace them. These jobs consisted of repetitive tasks. However, automation will create new employment opportunities that will require creative and enhanced thought. These positions will need talented people that will continue to boost the capabilities of the new technologies. They will also need to be able to successfully integrate their work with that of their digital counterparts.”
Collaborations between various departments will be the only way that all the benefits of digital transformation can fully be reaped. The benefits: less risk, lower costs and improved efficiency.
Cloud computing continues to grow
Data loads have grown to the point where fintech companies need cloud computing to manage them. The increasing adoption of cloud computing has resulted in the growth of the distributed cloud solution, where data is created and processed outside of the centralized data system. The distributed cloud is run by the original cloud provider who still offers all the services. Banking institutions benefit greatly because they have greater flexibility to deploy options and can better optimize their infrastructure. They can also meet compliance regulations, have less network problems and offer better security.
AI offers improved customer experience
The services delivered by banks don’t differ that much anymore. Consumers will make their choice of banking institutions depending on customer experience. Fintech will need to apply the new banking technology in such a way that they deliver customized and personalized services and engagements as they are needed. Banking customers will feel as if they have a personal adviser on hand.
AI allows the consumer to voice his requests
Smart speaker devices are extremely popular and consumers use them at an increasing rate. AI, machine learning and natural language are making these devices more intuitive in understanding the demands of the consumer. Voice commerce strategies require integrated platforms so that the consumer can have a seamless experience that also embodies the brand. The tricky part is to create a brand identity and voice that matches the visual experience.
Banking technology incorporates healthcare
Intelligent software solutions are smoothing the transaction process for healthcare payments; making it easier for the consumer and the health care provider. Besides payment solutions, these AI solutions offer integrated check-ins and healthcare plans that are available through financial institutions. They offer discount healthcare plans and because of healthcare tracking the cost of these are lowered.
Cybersecurity continues to be a challenge
Data breaches and the threat of cyber crimes will continue to keep everyone on their toes. Security automation is one area that AI is helping, but there is also a huge need for people with IT knowledge to fill in the demand created by increased mobile use and other IoT devices. Banks cannot afford to be left behind.
Banks need to be ready
Automation, AI and digital technology are changing the way banks and their consumers think. One example is the decreasing number of car loans banks issue. Younger consumers are now relying on taxi services like Uber, and in the near future they will be using automated vehicles more. These consumers have more time on their hands to search for products and services, even when on the move. It is up to banks to keep up with the demands of their consumers by embracing technology.