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Banks have been the leading financial bodies in any country for ages. But the traditional ways of banking are getting outdated with the emergence of technology and innovation. Banks are transforming themselves to meet customer experience and also for secure and transparent transactions to take place. There were several bugs in the traditional baking systems, all of them took a long time to process. But with time, banks have been advanced and equipped with technology in and out.
With the emergence of various fintech startups and their increasing reputation, banks have to overlook their innovation and standings. To compete and lead, banks have been developing themselves with the use of various technologies.
Banking is under continuous innovation for the past two decades. But the main question that arises in our minds: Have we reached innovation saturation yet in banking? To answer this, we have to consider various factors. If we talk about the current status, there are some fields in which banks have evolved them to the peaks. Still, there are many technologies that banks have not even touched. So, we can not easily say that we have achieved saturation. Let us discuss some of the banking technologies and their existence to get a clear idea of this question.
Blockchain is a type of database that stores information in the form of blocks that are chained together. With blockchain, various people can look through data without disturbing it and maintaining integrity. It increases transparency with full safety and decreases the risks of fraud. Almost every prime bank is using this technology and utilizing its importance.
Banks are continuously working to improve their efficiency in clearing and settlement systems and save huge amounts of money. Banks can also save on KYC by using blockchain technology.
Robotic Process Automation
The data that banks access is increasing every day with the increase in the economy. Most of them are unstructured. Banks need to maintain a record of banking transactions. But also other data that are related to customer service experiences and innovations.
The solution to all these problems is Robotic Process Automation that decreases the humanization workforce and manages the transactions in a well-arranged manner. It is being utilized and implemented in various banks still most of the banks need to adopt this technology to work efficiently.
As we already discussed in the last decade, the enormous growth of unstructured data increased to a great extent. The task of dealing with them is not just limited to organizing them, but there are various occasions when banks need to utilize and find those data. In that case, Artificial intelligence and machine learning prove out to be of great significance.
Artificial intelligence gives tracks and insights from the data and suggests various methods to improve administration, customer experience, data storage, office matters, etc. The banks with the help of AI can provide customized services to the customers and can become more customer-focused.
Banks no longer have to depend on human resources for development.
As we experience innovations and technology every coming day, cyber risk is also advancing itself with new technology every time. The old methods to deal with such threats are also becoming outsourced. The banks have to look forward to new deals and methods to overcome such security threats.
There are various methods by which cyber risks can be identified earlier with the use of big data. It is not easy to implement such them at the start, but once they are achieved, they eliminate the risk of threats. Keeping a record of cyber threats and being a step ahead of them is necessary for all banks.
The world is moving closer to the cashless economy with every budding day, and thus banks have to be straightforward and quick while carrying out transactions. The online payment method is the latest trend. Most of the banks have shifted to online payments either by creating their transaction app or relying on others.
Banks will combine p2p and e-commerce with their applications soon to gain attention from the public. But if we look at the current scenario, we are behind and need to experience many improvements in the field.
With the world being digitized banks require to be fast to carry out all their processes. The market that banks are dealing with is very fast and advanced, and banks have to meet their level. They have to provide capital to various businesses to act fast.
To achieve all this, the banks have identified that they need to use a hybrid cloud. While using hybrid cloud, banks access the problems of both public and private. It can help to solve various problems like data safely, governance, and utilizing huge capital in a short period. It enables multiple payment options for the customers and banks are quickly adopting this technology.
We can see there are various technologies that banks can utilize apart from the ones mentioned above. Banks are also moving quickly towards creating a smart machine that is a technology-based assistant like google and amazon’s Alexa. To achieve innovation saturation banks have to get a far more deal and accept many technologies and understand them. We have to change various traditional methods and also the mentality of people. There is no doubt in accepting that banking has changed so much and many technologies have created their space. Still to achieve innovation saturation we have to travel a far elevated journey.