New technologies are here to transform the traditional way of banking, providing opportunities and challenges for financial institutions.
FREMONT, CA: In the new world of finance and banking services, technology has become the key to a locker filled with goodies. It is now possible to imagine a future where opening a bank or a financial company is as simple as connecting an appliance. Making the banking business even more complicated, smaller fintech and large techfin companies are developing solutions that use insight and digital technology to improve the customer experience across product lines. Conventional banking is being shaken up by online disruptors, but there are many lessons to be learned from successes in other sectors.
• Predictive Analytics: Utilities
The utility industry has long struggled to mitigate leakage from water networks, with conventional methods failing to fix the problem. The application of high-level analytics, combined with extensive integration of various data sources, has enabled businesses to recognize leaks before they would usually be identified. Financial institutions can leverage their customer data to capitalize on the offer of predictive analytics to assist in the detection of fraud.
• Branch Banking: Logistics
Access to banking services with online banking is now more accessible for millions of people and in the process reduced the need for an extensive branch network. There are still many customers who want to use their local bank branch for face-to-face services. The efficient use of data can make it easier to decide which location is the best to provide these services.
• Relationship Building: IoT
Establishing an extensive customer identity is vital for banks that want to offer the most suitable products and services. The key benefits of data are its knowledge to illuminate customer needs and necessities.
• AI: Manufacturing
The use of AI in banking is not a new phenomenon, but fast-developing AI technologies are expected to become conventional in banking over the next few years. Retail businesses have stayed at the forefront of using AI-enabled virtual agents and chatbots, with banks yet fully to embrace these solutions.
According to a report, IoT technologies in the banking sector are used mainly to monitor customers, to understand and engage them better. If the technology recommences to grow at its current pace, then it would not be unusual to expect to observe experimental physical robots in-store at insurance firms, banks, and other institutions.