Technological advancements have drastically changed the scenario of every sector, and the financial sector is not an exception. The technology-driven financial sector offers improved customer experience leveraging proper Artificial Intelligence tools and providing service for 24/7. With this changing scenario, the attitude of the customers has been changed rapidly. Today, they rely more on net banking and mobile devices to meet their need. GP Bullhound's Technology Prediction has marked that 91 percent of customers depend on mobile banking. But, according to the report by PwC, 65 percent of consumers still believe in physical banking. Hence, the maintenance of the physical branch is important, and at the same time, banks should keep a keen eye on the digital revolution.
Theft is a major problem in the banking sector. AI-driven technology can facilitate the whole process of the transaction by its facial recognition technology. Today, banks leverage AI-driven technology to remain in the game. For example, Goldman Sachs has launched its AI-driven platform, Kensho to receive questions from customers in their natural language, and Santander offers the opportunity to pay through voice. Except this, the huge load of back-office tasks which includes reconciliation and credit risk management can be shifted to RPA to have an automated solution.
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Today, customers demand to pay and check their balance quickly eschewing those conventional, complicated and time-consuming ways. Google Pay and Apple Pay have enabled the customers to make payment in a safe and alternative way. Facebook has also announced its own digital currency to make the transaction through Whatsapp. These three companies possess a huge customer base of almost 2 billion people. This easy and secure process of the transaction is a threat to the banks.
The conventional banking sector has to change a lot to meet this growing expectation of customers and to lead in this competitive market. Some banking start-ups, such as Monzo, Monese, and Revolut have appeared in the game with their innovative ideas like reduction of rates for international transaction and incorporation of cryptocurrency trading. Technology has revolutionized the banking sector and has paved the way for such innovative start-ups.