bankingciooutlook

Impact of Technology on the Banking Sector

By Banking CIO Outlook | Tuesday, July 23, 2019

As technology offers more convenience and improves operations, bankers are continually enhancing and optimizing their performance to bring in new advancements.  

FREMONT, CA: Global Banking and Finance Industry is undergoing a significant transformation due to an increasing impact of rapidly changing consumer behavior, increased regulatory expectations, and proliferation of new technologies. New technologies emphasize sharing, openness, and transparency challenges that banking must embrace if it wants to stay competitive, but also tackle with care for security and privacy. There are some of the most critical technologies that banks must focus on.

•    Using Data and AI for Personalization

Customers are quite clear when it comes to personalization. They want suggestions that they wouldn’t have conceived of themselves. They also want a clear direction about what they should buy when they are shopping for a product or service. With AI, there is the potential to transform customer experiences and establish entirely new business models in banking.

•    Voice-First Banking

A significant part of the voice-first paradigm is a modern intelligent agent. Most financial organizations will move from essential dialogue and account queries to doing transactions using voice commands. This can involve being able to complete payments using voice commands, as well as doing account transfers and building account alerts using voice commands.

•    Open Banking

While the most notable tech firms are managing the charge towards implementing open API ecosystems, the model they use may not be the one most banking institutions should follow. Open banking platform future is within perception for financial institutions of all sizes. Traditional banking functions, such as making payments, can become integrated within non-traditional businesses. Virtual key managers in financial institutions should be meeting to resolve what their organization may look like in the future and how services will be created.

Banking trends are often managed equally by the level of technology accessible to the industry and what the consumers are asking for when it comes to their banking services. Almost every advancement forward in the banking industry today is technology-based, from new ways of conducting digital payments to disseminating key messaging through social media and even allowing investment for new-fangled sectors.               

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