It is nothing new to say that banking technology is in constant flux with technologies like AI and IoT entering the sector. Here are the top 3 trends to watch:
It is nothing new to say that banking technology is in constant flux. Companies like Amazon are threatening traditional banking players, while innovative technologies like artificial intelligence (AI) and mobile banking are steadily gaining traction in the sector. So, which are the hot new trends to watch for in the new year?
1. AI will simplify processes
Artificial intelligence could help banks automate repetitive processes, whereas improving customer experience, as experts say. This could be done via services like chatbots, among others.
“We see organizations beginning to greatly simplify processes through intelligent automation, which in turn helps to expose enterprise data that has been traditionally trapped in complex core systems.“, as Mitch Siegel, national financial services strategy and transformation leader for consultancy firm KPMG told American Banker.
Siegel explained that innovation in banking will continue being a thing in the sector. According to him, in 2017, there was a pivot from investments in compliance infrastructure to investments aimed at growth, scalability, simplicity and future-looking models. Also, he noted that with data it is becoming increasingly possible to create services and experience that match the needs of each user.
2. Mobile Banking is making things easier
Mobile banking will supposedly become easier to use and with improved functionality. Online banking is no longer something revolutionary – now banks are competing for online presence, so it is no longer acceptable to offer mediocre apps and services, according to Kirk Borne, principal data scientist and executive advisor at consultancy company Booz Allen Hamilton.
Borne spoke to The Financial Brand elaborating that mobile banking will continue improving past standard banking. For example, this acceleration may include services like consumer-to-consumer one-click payments, password-free biometrics, and new cryptocurrency opportunities.
3. IoT is entering the sector
The Internet of Things (IoT) technology is emerging as another major innovation in the banking industry. Marc DeCastro, research director for IDC Financial Insights, told the BizTech magazine that there will be more proof-of-concept deployments of IoT technology next year. Some of the possible uses could include sensors that authenticate a customer via their biometrics.
“I think, if done properly, it’s an enhancement and it can improve the overall customer experience.”, as he said in an interview.
With the new year just started, it is interesting to see how the banking sector will change thanks to technology innovation. AI, IoT, mobile banking and many other emerging technologies are already transforming the way we do banking. But let us wait and see what is next.