How Will Technology Shape the Future of Banking?
Just like any other industry in the world, banking has continued evolving and changing throughout the years. Some people speculated that banking would remain reasonably stagnant; for example, some years ago, people believed that online banking couldn’t become a thing due to various security risks.
Nowadays, however, online banking is the primary way through which people check their accounts and open new ones as well. In short, new and future technology will continue to influence the banking sector. Let’s look at a few ways technology will shape banking for years to come.
1. Intelligent Banking
Just like every other piece of technology we use daily, banking has become more and more “intelligent.” We’re already on our way to replacing physical credit cards, as we can now store every bit of information about our finances on our smartphone and also make payments with it.
There are several apps, developed by individual companies or banks themselves, that allows you to use your smartphone to pay in convenience stores, coffee shops, restaurants, and other brick and mortar locations. Long gone are the times when we used online banking for online purchases only.
2. Spending Habits
Moving forward, banks will also take advantage of what new technologies can do for them. Artificial Intelligence, as well as something known as the Internet of Things, will allow banks to come up with banking services that are tailored for your habits and experiences.
For example, banks may now take a look at your spending habits and create a payment model suited entirely for you, thus making banking and finances more specified for your needs.
3. Increased Accuracy and Efficiency
Back in the day, when you wanted to engage in single banking operation, you had to do a lot of different things, even if you handled it all from your smartphone only.
There were several ways for the banking app to make sure that you want to perform that operation, not to mention the amount of data you had to introduce with each service.
However, new AI can now automate these processes that we use every single day, thus significantly increasing the accuracy and efficiency of a banking system. Instead of completing forms at every step, for example, some processes require as little as a face identification that takes a maximum of one second to perform a banking operation.
4. Increased Productivity
Last but not least, all of the above contribute to vastly increased productivity across all fields that require the use of banking. As such, employees are predicted to be roughly 47% more productive with each change of a banking system, as well as an increase in business growth at 37% and operational efficiency at 38%.
Most sources say that such an increase is thanks to things being much faster than before and focusing strictly on strategic objectives that have the end goal in sight. For example, instead of waiting for specific data from a colleague, bank employees now rely on cloud-saved data that they can access at any time and, therefore, perform operations much faster.
5. The Bottom Line
In short, every piece of crucial new tech may affect the future of banking. As mentioned above, no one thought that the online or AI would find a place in banks and banking systems! Nowadays, however, most banks cannot even operate properly without such policies in place – or they can but to the disadvantage of their clients.
On top of that, the technology that will find its way into our homes will be implemented into the systems we use every day — and because of this, we now have smart homes, smart shopping, and smart banking!