Blockchain, artificial intelligence (AI) and the Internet of Things (IoT) will have a big impact on the banking industry.
Money matters, and so does the banking sector. It is flourishing, focused on technological advances. Trends in the banking industry change from year to year with better innovations, increasing the number of startups, mergers and acquisitions and customer expectations.
Between 2019 and 2022, the adoption of online-only banks increased significantly. By 2022, a quarter of British adults had opened an account at a bank that only offered online services. These figures clearly describe the importance that technology has created for banks.
Trend technologies used in the banking sector
Banks focus on tailoring their products and services to the needs of individuals and, as a result, offer highly personalized experiences. This practice helps them retain and retain customers. In addition, they are trying to improve current processes to increase bank productivity and customer satisfaction. Examples of banks that implement the latest technologies include:
1. Biometric recognition
Banks are being used to protect vital information as well as to adapt digital signage. This technology instantly recognizes customers when they try to connect to a bank’s mainframe connected device, and provides customer information for office staff and to provide personalized service for other assisted or self-service.
2. Artificial intelligence
Artificial Intelligence (AI) enables banks to manage high-speed data at the registry level to receive valuable information. It is the future of AI banking as it brings the power of advanced data analytics to deal with fraudulent transactions and improve compliance. The AI algorithm performs anti-money laundering activities in a matter of seconds; otherwise, hours and days are required.
3. Sound Verification System
Barclays announced that users will be checked according to their speech patterns. The system stores a recording of the customer’s voice tag. After an initial recording, the customer can speak to a customer service agent, during which time their voice will be verified with the saved voice tags. This biometric solution reduces the time it takes for customers to verify their identity.
4. Big Data
This is one of the most talked about technology in recent times. The sheer amount of data out there is a puzzle that has the ability to unlock the top secrets of consumer behavior. It will give banks the ability to customize their services individually.
As we know, the key to the success of a banking service lies in its ability to connect with customers. Transactions are becoming more and more intelligent (capturing data via cards), allowing banks to get more data about customers. The challenge for banks now is to extract important information from this data.
5. Zero Confidence
The concept of Zero Trust is always treated as if it violates your infrastructure. Assumes that a user, workload, device, or network cannot be trusted by itself. Each access request must be validated at all available data points, including user identity, device, location, and other variables.
6. Internet of Things
ATMs have been one of the main IoT devices that make banking much more efficient, enabling real-time transactions, rather than waiting to see an ATM on a brick bank. ATMs have been one of the main IoT devices that make banking more efficient.
Blockchain technology, both public and private, can be implemented in a variety of financial use cases, opening up new sectors of banking services, enabling faster, cheaper, more secure and inclusive transactions that benefit both banks and customers.
With the rapid development of technology, businesses around the world are being disrupted. Banks long ago realized that they needed to constantly invest in technology in order to remain relevant in this age. Much more innovation is taking place in banking technology and what is being mentioned here is just the general trends that most banks are using to have the biggest impact on banking revenue over the next decade.