How emerging technologies are poised to transform the banking industry?

The global financial services industry is changing rapidly. The interest in digitization is accelerating this transition with advanced banking technology that is continuing to drive innovation in the future of financial services. From retail and mobile banking to neobank, these digital technologies are imparting its impact in every aspect of the the industry. The emergence of new crops of fintech startups is making the banking business even more complex, developing and deploying solutions that use insight and digital technology to intensify the customer experience across product lines.

Here is a look at the top 5 emerging technologies that are transforming the banking sector in 2020 and beyond.

Mobile Banking

As consumers use their smartphones to make purchases daily, they also utilize them to check their bank account balances. Several top banks in the industry listen to their customers’ pleas and have begun to develop mobile apps. Mobile banking technologies are also worth investing in for the banking industry because these apps enable customers to check their account balances and make a mobile deposit from anywhere. Simultaneously, employees get more time to complete other tasks as the apps take care of a lot of the services, they were previously responsible for. Investing in mobile banking can boost banks’ reputations and saves workers time as well.

Customer Relationship Management

Over the past two years, there has been a resurgence in investments in CRM solutions among banks and credit unions, making it hardly a new technology. Investing in CRM solutions, CEOs are also increasing their cash flows. Banks, as well as credit unions, continue to gain good returns as it offers convenient and attractive services to consumers. As customers want to receive quality customer service at all times of the day, banks need to invest heavily in this solution to avoid the fear of losing customers.

Blockchain

Blockchain technology is set to fundamentally transform banking and financial services as it decentralizes financial management from a central authority to a prevalent network of computers. Banks and other financial institutions that deploy blockchain technologies into their strategies reduce their costs significantly. The technology is worth investing in for the banking industry.

Leveraging blockchain technology can enable banks to easily enhance their processes for payments, remittances, and traceability goals. It can also enhance data-sharing procedures while bolstering collaboration within institutions.

Artificial Intelligence

Artificial intelligence impacts a broad array of technologies including Data Science, Internet of Things (IoT) and Natural Language Programming (NLP). All these technologies advance financial institutions’ operations. Most banks leverage AI to enhance their customer processes as the technology already showed its potential to other industries. Taking these factors at the top, banks need to invest in this banking technology.

Cybersecurity

Security is indispensable not only for banks but for all industries. When customers open their accounts and join a bank, they expect the financial institution to keep their information and their capital safe from cyberattacks. But maintaining quality cybersecurity processes is becoming more and more difficult for banks. As a result, customers in various areas across the world are dealing with fraudulent activity regularly. To thwart such instances affecting customers, banks need more preventative procedures in place, including multi-layered security, analytics insights, and adaptive security measures. So, cybersecurity is most worth investing in for the banking sector.