When was the last time you physically came to the bank to make transactions or to solve issues by calling the teller? Many respondents stated that it was days or weeks before. Admit it, you are also not an exception! This is just one minor proof of how technology innovation and application can be helpful to the development of the banking industry. It will surely have more huge impact on this important sector.
This article will show you how technology has changed the global banking industry with the latest banking IT solutions, especially for the current era.
- Online Banking & The Potential Of Neobanks
Neobanks, also known as digital-only banks or internet-only bank, is a type of 100 percent online direct bank that operates exclusively online through apps and online platforms without any traditional physical branch networks.
Although the term “neobank” has only existed for approximately 3 years (since 2017), the forces that have led to this “banking of future” have been a long time coming. As users are becoming increasingly sophisticated and smart, their demands have fuelled the creation of banks that are entirely digital, which can allow doing and managing a business at all hours, implement innovative services to attract new customers and also develop remote agents.
For instance, in the US, one San Francisco-based neobank has attracted more than 2 million consumers, which has higher performance and customers per month than current banks within the market such as Citi, Wells Fargo, etc. This demonstrates such a potential shift toward digital channels that the increase of neobanks in the US will bring great awareness to digital-only banking, thus wane-out traditional banking competitors eventually.
Hence, it can be stated that traditional banks have typically been slow to adopt new technologies. It is a must that the global banking industry applies knowledge and learning from digital-first processes to ensure continued relevance in the coming years.
- Artificial Intelligence (AI) Application Through APIs
It has been reported by Business Insider Intelligence that 48% of banking executives believe that new technologies, namely the trending blockchain and artificial intelligence (AI) will have the greatest impact on banking through 2020.
According to the report, the future of banking technology is driven by consumers, especially the young and dynamic Gen Zers, who see technology as the crucial factor that enhances their lives. Hence, in the global banking industry, a common trend in banking technology is using an application programming interface (API) to make proprietary data available to anyone who has the consumers permission to access and benefit from the mentioned information.
As fintech has also used API technology to enable their businesses to work, their proven success is currently encouraging more and more competitors to develop their own APIs. In digital banking, developers can use the APIs to enable a banks mobile app to pull down customer account information.
- 24/7 Access & Availability
Nowadays, consumers are accustomed to 24/7 online services, whether it’s digital goods ordering through online shopping channels, streaming music, movies, or any other purposes. Meanwhile, should banks be any different? Of course no! Online services allow users to easily log in to the bank’s site at any time of the day, all weekdays to perform any transaction. This provides people with the convenience of accessing banking services and conducting business even when there are special occasions such as holidays and weekends when most traditional banks are closed.
As a consequence, technology has a huge effect on almost every area of our lives, especially on how we associate with others. It is also one important sector which is beneficial to the development of the banking industry, in which technology has altered almost everything to provide banking tech solutions.
In conclusion, the biggest tech revolution could still be yet to come as the global banking industry hasnt reached its peak yet, according to top financial experts’ statements. Hence, should this be such an exciting case for the next 5 to 10 years, as technology continues to structure the way that our banking sector operates?
Let’s witness to see which financial institution will be flexible enough to keep up with the revolution pace! Read more articles from https://beetsoft.com.vn/our-stories.
By Minh Thao Nguyen
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BeetSoft Co,.LTD – Faster and Better!
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Email: contact@beetsoft.com.vn
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For me, banking on the Internet of Things [IoT] is the main potential of digital banking. While you may use a wearable to track your health, how about using it as a digital wallet and paying for your grocery at a shopping complex?
Recently some organisations in the US allow customers to make contactless payments directly from wearable devices at point of sale (POS) locations and they can also be used at various Bank of America ATMs.
So I’m personally very interested in this topic and looking forward for their next development in the near future.
Thanks for sharing your thoughts. As I lived here, in Vietnam for 25 years, I can see the changes of technology with businesses very clearly such as Checking attendance by face, categorising VIP customers and blacklist customers by AI, website development for all industries (Manufacturing, Banking, Restaurants, etc.) and the growth of e-commerce.
For Banking industry, they started to use online transaction, online marketing, online branding, applications or new technical ATM and so on. This helps us a lots in lining up for transfer money in any branches.
We cannot deny the positive side of IT solutions in our life these days.
For long, banks have been reluctant to update their systems – and for good reason. The current systems that they use are the product of years of continued innovation to meet immediate customer requirements.
But this has resulted in siloed systems being used for the transaction, savings, investment and loan accounts.
In the new What’s Going On in Banking 2020 study, the top five technologies for 2020 are: 1) Digital account opening; 2) P2P payments; 3) Video collaboration/ marketing; 4) Cloud computing; and 5) Application programming interfaces (APIs).
Lets see what people did in this year?
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I am glad that you simply shared this helpful information with us.
Please keep us up to date like this. Thanks for sharing.