“This decade is seeing developments across banking industry, including mature applications to fintech solutions by keeping the latest banking industry trends in the mind. Greater use of digital payments, the opening up of banking thanks to API built architectures, the first significant progress with blockchain technology, and the harnessing of AI and RPA solutions. These changes will all occur as global tech giants change the financial services battleground.” – Roberto Ferrari, Chief Digital and Innovation Officer at Mediobanca Group
The introduction of digital technology including the latest banking industry trends has become much technical today. It has moved from normal paper transactions to screen tap points. It is right now running in the phase of commoditization. Today’s banking scenario works on providing differentiated and delightful customer experience than merely just providing financial services. To be a market player and grab a bigger piece of the cake, banking industry toil to understand the unsaid and unstated needs of the customer without even taking direct feedback from them.
There are several factors that account for a revolution in the banking industry. It begins with the combination of dynamic reasons which includes rising interest rates, varying regulatory environment, tax deductions, government regulatory policies, inflation, increasing interest rates, higher customer’s expectations etc.
These versatile reasons have already accelerated the banking industry trends and enable banks to gather speed for a visualized and transformative digitization of platforms and processes. Many segments of banks like midsize and larger banks have started to implement massive investments in their approach to transform banking into digital service providers.
Let’s talk about the current key trends that are revolutionizing the banking industry with the magic of digitization.
1) Machine Learning: Banking industry is making it big in machine learning adaptation. They are investing in technologies like a machine-mediated conversational marketing tool. This helps to focus on customer needs and interact with them on the basis of customer data collected over a period of time.
Various touch points with customers over Digital platforms
Source: https://www.happiestminds.com/whitepapers/digital-transformation-in-banking.pdf
2) The Advent of Robots: Banks are raving towards Robotic Process Automation (RPA). This uses software robots or ‘bots’ to impersonate human activity thus having the potential to interact with customers like real human executives in real time basis. This frees the employees who can now focus on much needed value-added work.
3) AI Power: Artificial Intelligence is the new sensation in the banking industry trends. Like other technological advancements, it has created a buzz and the banking industry is no longer what we have known till now. AI solutions are being used to automate repetitive processes in the banks and improve customer experience.
With the automation of banking processes, AI can delve into customers’ data and provide information about their interests and preferences. This has given rise to custom-made services, focused around resolving customers’ problems and providing them with the best possible solutions in real time.
4) Cloud Computing: Banking sector had seen the advantage of cloud computing only in fragments. For instance, having the cloud computing implemented to systems like Procurement, HR etc. But now, banks are seen to move their entire system on the cloud. This has reduced the challenges being faced by the banking industry in numerous ways, including reduced cost of infrastructure, increased business agility, and enhanced level of security.
5) Digital Payment and Mobile Wallets: Most of the sectors have moved to digital payments these days. Mobile wallets are already high in demand in the market. Banking industry too has penetrated into digital payment and mobile wallet market by emphasizing on the use of credit and debit cards and website and app for making payment. The new payment methods are gaining momentum among tech-savvy users, as the payment models are simple, convenient, and to a large extent secure.
Conclusion
The continual innovations in the banking industry trends are aimed at bringing all the banking services on digital platform, making the services accessible for the modern day users anytime, anywhere. The ease of banking including ultra-fast and cashless transactions that comes with digital technology pushes the banks to adopt new innovations. The consistent move to technology will increase customers’ convenience, reduce cost, and also provide banks with relevant data to process, analyze, and generate insight to make better, smarter decisions.
Finoit Technologies is a renowned mobile app development company providing custom software development services and IOT application development services. We have developed over 450 mobile apps and have assisted enterprises and startups by functioning as a tech partner and rolling out their product ideas. We are a Standard Consulting Partner for AWS and have the expertise and experience to help transform the technology journey of our customers. For questions/queries, you may write to us at info@finoit.com
