Overcoming Limitations in the Banking Industry with Technology-Driven Solutions

Banking CIO Outlook | Friday, July 19, 2019

To stay ahead of competitors and ensure innovation-led growth, banks are discovering new use cases with advancing technology.

FREMONT, CA: The banking industry has been continually incorporating technology into its operational ecosystem. The transformation into the digitalized process, automation, and intelligent decision-making might have come slowly, but it is making a radical impact on the traditional banking industry. The business models which seemed relevant till very recent suddenly look like legacy models and drastic technology advancement is the secret. Another major trend in the industry is the introduction of new players. Both big and small competitors are entering the banking sectors because of the new opportunities that have opened up.

The way banks function is undergoing fundamental changes. Business decision making is changing, thanks to artificial intelligence and data analytics tools. Studying market trends and predicting the value of products is becoming easier as machines with artificial intelligence are leveraging the power of the data available with the banking companies. Smarter business decision-making is banks safer and enhancing revenues.

Customer relations management and customer services are transforming under the impact of robotic process automation, machine learning, and natural language processing technology. Chatbots that assist customer continuously with all queries all through the day are an essential addition to banks' capabilities in customer services. With the improvement in chatbots, banks can engage better with customers, provide continuous assistance, and generate trust in the products and services they offer. Personalization is also improving as a result of systems that have been able to create individual customer identities and study buying behavior.

The most development has taken place in the e-banking space. With digitalization, improvement of network facilities and affordability of personal smart devices, the popularity of online banking services is at an all-time high. Although the brick and mortar branches are far away from losing relevance, the convenience that the mobile-banking facilities bring to the customer is causing their fast adoption. This has helped banks cut cost and offer a satisfying experience to customers at the same time. Most of the facilities for which customers had to visit banks are now available at the swipe of a finger.

With due regards to regulatory compliance and security against frauds, banks should look to make the most of the dynamic ecosystem that technology has created.


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