Increase in the capitalization of markets has resulted in increased growth in the revenue of financial institutions, and it has become more challenging with the plan of cutting costs having run its course. The financial organizations are deploying various technological advancements while customer expectations are increasing continuously. New emerging technologies are completely disrupting the financial organizations providing both advancements as well as various challenges.
Today, both small, as well as large financial organizations, are implementing new technology solutions with the intention of digitalizing their business to improve the customer experience across the product lines. As these organizations continuously update their process and functions with the help of technologies like AI, machine learning, IoT, and big data management, the future of banking is expected to see several new trends and developments in the coming years.
The technologies in banking will be more customer-focused to address factors such as customer expectations and increasing competition. These technologies will provide more targeted, efficient, intelligent, and secure solutions. Recently, researchers from IBM have stated that cloud computing has become an integral part of the banking sector, with most of the organizations looking for the perfect mix of the traditional IT, private and public clouds. The banks are moving toward an enterprise-wide hybrid strategy.
Robotic process automation has disrupted many of the banking functions and helped the banks to accelerate developments by performing pre-programmed process and procedures across a range of structured and unstructured data. This automation reduces administrative costs, as well as regulatory process, costs up 50 percent with an assurance better quality, speed, and efficiency. AI and machine learning technologies like cloud computing can provide organizations accurate data management, secure transactions, customer experience, and reduce costs.
Blockchain could create a revolutionary impact in the financial industry offering benefits such as improved efficiency, cost-effectiveness, higher security, and fraud reduction. Similarly, these technological advancements in the banking industry have changed the business and consumer expectations in money transactions and instant payment facilities.