Introduction
The banking industry has been undergoing an evolution of sorts over the past few years. Digitalization and fintechs have been redefining the landscape of banking and financial services with innovative solutions and products. Say’s Dr John Strobeck,, the digital transformation in banking has also led to a change in customer behavior, which is forcing banks to adapt their business models accordingly. Here are some trends that have reshaped the financial landscape of recent times:
1. Blockchain
Blockchain is a digital ledger that records and verifies transactions. It’s the backbone of cryptocurrencies like bitcoin, but it has many other applications, including supply chain management and smart contracts.
Blockchain technology offers financial institutions the potential to reduce costs associated with regulatory compliance and improve overall operational efficiency through increased automation and data sharing between organizations.
2. AI and Machine Learning
AI and ML are the buzzwords of the decade, and they’re becoming more prevalent in banking. In fact, it’s estimated that AI will account for 80% of all transactions by 2025.
AI is an umbrella term that includes hardware (i.e., computer processing power), software (i.e., programs) and data science methods used to perform tasks normally requiring human intelligence such as visual perception or speech recognition. Machine Learning (ML) refers to a class of algorithms that can learn from data without being explicitly programmed–a concept known as “artificial intelligence” (AI).
3. IoT, Big Data and Real Time Analytics
IoT is the connection of devices to the internet. These devices are often embedded into physical objects, such as sensors and cameras that monitor everything from roads to bridges to factories.
Big Data refers to datasets so large or complex that they require new technologies for processing, storing and analyzing the information within them. Big data is often analyzed using real-time analytics software that can analyze information as it’s collected–in real time–rather than having to wait until after all your data has been collected before you can begin analyzing it.
4. Chatbots, Voice Assistants, Augmented Reality & Virtual Reality
Chatbots are the new customer service representatives.
Chatbots can be used to help customers with a wide range of tasks, from checking account balances and making payments to providing information on products and services. They’re also an excellent way for banks to interact with their customers in an easy-to-use format that makes it easier for them to get what they need quickly–no waiting on hold or navigating complex interfaces required. As more people become comfortable talking with bots (and as technology advances), chatbots will become even more useful in the banking industry; some are already being developed specifically for this purpose.
Voice assistants are becoming more common in banking apps.
As voice assistants like Amazon Alexa, Google Home, Apple’s Siri and Microsoft Cortana become more popular among consumers worldwide, many banks have begun integrating these tools into their mobile apps so customers can interact with them directly through their phones instead of having to visit branches or call customer service lines every time they want something done at their bank
The banking industry is rapidly transforming through digitalization, with fintechs playing a key role in this transformation
The banking industry is rapidly transforming through digitalization, with fintechs playing a key role in this transformation. The following trends are reshaping the banking landscape:
- Blockchain, AI and Machine Learning, IoT (Internet of Things) Big Data and Real Time Analytics
- Chatbots, Voice Assistants Augmented Reality & Virtual Reality
Conclusion
These are just four of the many trends that are reshaping the banking industry. With so many innovations happening, it’s important to keep up with these developments and understand how they can be applied in your own business.
