Emerging technology trends in the banking sector are rapidly set to change traditional banking landscape.
FREMONT, CA: Digitization, emerging technologies, and customer-centric offerings are essential priorities for retail banks. Future years will see more significant momentum in these areas and corresponding technology investments. It is a piece of excellent news for customers who will benefit from new, personalized services, and banks that will realize greater operational efficiencies. Here are the top four retail banking technology trends to anticipate.
• Deeper Digitalization
Future years will see a higher demand for deeper digitization within retail banking business and commercial lending and payments. With this, the entire customer lifecycle will be more digitized, not just through digital app-based access but also by re-designing the analog process. The industry is looking forward to entirely digital foundations across acquisition, onboarding, servicing, and collections.
• Voice-First Banking
The young generation of consumers is having voice agents interacting with each other and acting on their behalf. With this significant shift, most financial organizations will move from essential dialogue and account inquiries to doing transactions using voice commands. Conversational banking can include being able to execute payments using voice commands, doing account transfers, and establishing account alerts. Experts note that in the next five years, half of all banking interactions will be through voice-first devices.
The increased use of digital channels has made the banking more susceptible to cyber-attacks and have forced institutions to be in the position of playing catch up. Fortunately, banks are becoming proactive in data protection and managing cybersecurity risks because consumers want both ease of use and increased security. This makes the industry to implement multi-factor authentication, secure applications, digital signatures, and other forms of security practices.
Financial institutions are in the process of implementing blockchain capabilities given its myriad applications. The focus of blockchain implementations is mostly around cost reduction and process simplification. The adoption of blockchain in payments, remittances, and traceability are where blockchain technology seems to be used the most presently.
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The days ahead hold exciting potential in technology advancement for banks. Indeed, with tech banks will attain shining possibilities.