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The competition is rising with the onset of new disruptive technologies and the main forces resulting in this change is customer expectations, shifting economies, new competition and the list goes on. IoT, Big Data and Blockchain have gained prominence in the market, but there many other technologies also which are paving their way and these new technologies are transforming the way we exchange and save money.
1. Mobile Retail Banking: The financial institutions are moving towards a more mobile-friendly or mobile-first approach with challenger banks like Mondo, Tandem, and Starling who are already reaping the benefits of banking through the mobile application. Traditional banks are struggling to adapt to the new reality where physical interaction has taken a backseat and are no longer the status quo.
2. IoT: The Internet of Things is arguably the most widespread and accepted technology which is booming in all the sectors. IoT offers retail banks an opportunity to gather more information about its customers, and provide more personalized experiences and improve efficiencies.
3. Artificial Intelligence: AI is aiding in reducing the pressure on existing staff and transforming the in-branch experience for retail banking clients. The human AI is designed in a manner that it filters through massive amounts of information in a second before responding with an answer. And if it somehow fails to answer, it passes the query to a member staff that further solves the complex issue.
4. Bitcoin and Blockchain: The much-hyped technology blockchain and bitcoin have been hugely talked up for varying reasons. Bitcoin is considered as a real-time payment method and blockchain is the centralized ledger technology enabling secure yet transparent mode of payment. It also allows banks to track payments from start to finish.
5. Biometrics: Biometrics is increasingly being used in the banking sector to reduce fraudulent activities and improve online accessibility. One significant example could be of fingerprint sensors as passwords and PINs to minimize the chances of cyber-criminals hacking the account.
6. In-car apps: CaixaBank, a Spanish-origin bank has created the first mobile banking app that could be accessed while driving, using voice control. With this, the drivers will be able to check the account balance and transfer funds and also locate nearby ATMs and branches.
7. Wearables: With the introduction of Apple watch, numerous banking apps came forward but wasn’t much popular on Google’s Android platform. Also, the increasing use of technology in healthcare and payments has raised the demand for wearables. Similarly, the ease, flexibility, and security provided by wearables make them a popular device.
8. Robotics: Robots which are always associated with manufacturing, if collaborated with AI can improve customer service as well. Japan’s Bank of Tokyo Mistubishi UFJ uses a robot called ‘Nao’ who answers basic customer service questions in 19 different languages and also analyses customer facial expressions and behavior.
9. Augmented Reality: AR trend is rising, primarily for wearables used in manufacturing and health care, but is starting to make a place in the banking sector as well. There are organizations which are releasing their augmented reality (AR) app for mobile devices. The 3D imaging software provides details regarding customer balances and transaction history.
10. Big data analytics: Retail is one of the hottest markets for big data analytics. The big data analytic symbolizes that banks need to be more dependent on AI more than ever before. For retailers, big data analytics can be applied to any aspects of their business, and once you start receiving the ROI from big data, then there is no stopping.
See Also: CIOReview Publication in Medium