The banking sector is posing the newest technologies for transforming the industry and landscape changing rapidly in the next five years. The safety feature, for example, biometrics and advanced cryptography, can protect a lot of bank scams and other remote applications, making it easier than ever for performing the banking practices without visiting any branch. The experience for the same is quite a customer-friendly for the users, as they will have a seamless user interface throughout their time.
Do have a look at below technology trends and banking industry future:
The blockchain technology is known for transforming financial and banking services. The technology is known for decentralizing business management with the central authority for the widespread network of machines. The financial transactions are found to be broken into many encrypted blocks and products which were added to the computer code chain and for enhanced cybersecurity encrypted. The technology is known to have the potential for improving the numerous fields of banking and forms the basis for the banking technology upcoming trends, for example, bitcoin.
The ATMs are known for transforming the bank tech systems when they were introduced in 1967. The next revolution through the ATM is to involve payments like Google Wallet, Apple Pay, etc. For the same, the smartphone can be used to conduct many contactless ATM transactions.
Many ATM innovations are already taking place in overseas; for example, the biometric authentication is used in India. Still, if we talk about iris recognition, it is in place only in the ATMs of Qatar National Bank. These types of technologies will be able to help the bank security for protecting against many ATM hacks.
Online Banking Future:
Mobile banking is just like online banking and is making many online customers is known for slowing down worldwide. Based on Insider Intelligence, mobile banking is found to grow about five times the pace of online banking. More than half of online clients are mobile banking users.
If you need to check the growing popularity, few banks are established still short on demand for the task related to mobiles like reward redemption, bill pay and allowing them for pushing users towards the online banking. And checking through the push it will never be enough for popularizing the online banking as Gen-Zers and millennials to continue gravitating in the mobile market.
The retail banking referred as the specific services bank offerings for clients such as checking savings accounts, loans, debit and credit cards. Clients growing their desire for accessing the financial services from various digital channels leading to a surge in the new banking technologies and are quite reconceptualizing the whole retail banking markets.
The technology gearing up towards the improvement of retail banks and their operational efficiency tends to make a positive impact in the market. The Business Insider Intelligence has employed more than 39% of the executives saying that cost reduction is known to impose a significant effect compared with 24% who believes for improving client experience. Retail banking also is known to launch platforms in the BaaS for remaining competitive. For instance, UK neobank starling started using exclusively offering B2C or business-to-consumer. After launching the platform, the starling can diversify the revenue and product streams, for helping remaining relevant neobank space.
Also known as neobanks and they are defining the future of banking across the world. Due to high regulatory barriers, there are many developments and loosening of these regulations will suggest that the US neobanks and known for taking off.
The neobank chime based on San Francisco has already attracted more than 2 million clients and have added more every month than Citi or Wells Fargo being demonstrating the digital channels shift. The neobanks development in the US tends to bring awareness for digital-only banking and wane out traditional competitors.
Wearables like smartwatches are known to be poised to look for the retail banking future experience as per the Samsung Insights. The leading example is that banks can use Bluetooth beacons for pushing personal greeting to know about customers smartwatches while entering a banking location. The other type of wearables can be smart glasses for the bank tellers, as per the reports from Deloitte, would process clients banking information for various employees while performing other client service tasks.
Proliferation for non-banking institutions:
Banks hope that technology tends to allow and deliver faster, to know more about their transparent experience for their clients. One of the large portions of the resources are dedicated for compliance, security and various other industry-specific requirements allowing non-banks or other financial service provider is regulated by the banking industry to flourish too.
These companies can devote a significant percentage of their assets to know about cutting-edge financial technology and they can be able to innovate quite rapidly and better than the traditional banks while attracting the tech-savvy clients in their process.
The banks are well-known for pouring money into the technology, and we’re the fastest way for delivering financial innovation in future, and the mode is strategic partnerships. One of the fastest-growing companies already tends to have a new-wave fintech or the other social media platforms at a place can make excellent partners for these traditional banks looking for enhancing the client’s experience.
The companies like Cardlytics, tend to engage in data analytics known to partner with many financial organizations, For Example, Bank of America to be able to leverage purchase data to tailor marketing-based client’s card usage.
One thing to be considered in all these innovations is that the banking institutions are making their strategies based on user’s experiences and are looking ahead to making the banking industry future.