How can Banks and Insurers Keep Pace with the Technological Trends?

Banking CIO Outlook | Friday, July 05, 2019

The banks and insurers must prepare for the implementation of technological advances in order to deal with increasing cyberattacks and other challenges.

FREMONT, CA- When it comes to how banks, insurance companies, and other financial institutions leverage technology, we have seen a range of innovations in the recent past. Whether it's the explosion of mobile banking options, the proliferation of cloud-based investment tools, wider acceptance of payment platforms, or enhancements in data privacy and security, the lines between IT and the financial sector are interlinked.

The changes mentioned have created a huge impact on the lives of customer’s relationships with the banks and insurers in many ways, and this change will continue for betterment.

Below is a list of some of the main innovations that banks and insurance companies should have in mind to deploy changes in the near future:

Open Banking

Application Programming Interface (API) just allows applications to communicate with one another. By using APIs, banks that had the foresight to crystallize their open banking strategies will see the benefits of being able to scale, control, govern, and reuse APIs. By maintaining the flow of data through open APIs, banks can mitigate competition risks and at the same time, can offer customers a wider and easier customized set of services. This will help banks to focus more on the customers, mobile engagement, and other financial services.

IoT-Driven Insurance Broadcasting

Companies will maximize their use of IoT technologies. Insurers will unlock the value of fresh techniques to create and offer brand-new value proposals in risk and fraud prevention, enhanced claim management, and customer engagement that disrupt traditional insurance altogether. The most innovative insurers will operate by building ecosystems around IoT data.

Rise of Challenger Banks

Challenger banks, the first digital economic organizations to challenge the bigger banking organizations, will face two growth-related trends in the next half of the year. First, they will move from being start-ups and to a marketplace that is more "traditional organization," while gaining significant market share. In the second phase, challenger banks will face difficulties that are similar to the current conditions of banking.

These are just some ways the technology will benefit insurers and banks. As we move deeper into the year, financial institutions would be prudent in exploring new techniques and innovations that to better develop, compete, and win over clients.

See also: Top InsurTech Solution Companies

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