There is a growing pressure over financial services to modernize their capabilities, to stay competitive in the digital scene. After this COVID-19 crisis, credit unions, bank institutions and all financial services must renovate or die. It is clear now that notes are being avoided and that credit card transactions are becoming more popular nowadays.
Consumers are demanding more speed in all aspects regarding financial transactions, as new technologies will completely change the way we know the banking sector.
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One of the reasons for what financial institutions are joining this digital competition is due to their need to increase their revenues. Retail banks around the world are experiencing notable increases in their revenues due to the direct impact of technological progress. The rise of mobile banking services, online banking, and business to consumer (B2C) strategies are a direct consequence of these benefits.
An Easier Access to Credit Score
A wide number of bank firms are working on new ways to attach your credit score to your bank account, which will make it easier for customers to regularly check on their credit history. Anyone who is considering applying for any type of loan: personal, unsecured, home improvement loan, etc. will see how the process as a whole takes place in a faster way.
Mobile banking is one of the most successful ways to manage their finances for customers. From payment transfers to tracking on movements, this method has become essential for almost every consumer. In terms of looking up to the future on this aspect, customization and security are key premises here. Mobile and website customization will make a difference regarding what customers see on an Internet platform or mobile app. Every company that wishes to thrive must offer personalized content and features if they want to stand out of the competition.
The use of authentication procedures is gaining more adepts as a tool to improve data privacy and to avoid fraud. Eye voice authentication represents a less costly but very effective alternative to a rich investment in technology.
Artificial Intelligence & The Cloud
Artificial Intelligence (AI) is paving the way for online banking. The implementation of this technology within financial institutions has been present across the financial industry over the years now. AI will be massively applied to all areas to improve new services and offer greater customer service experiences. Virtual assistants would have a wider presence, and chatbots will potentially expand over the digital scene.
Every business must stay present on the Cloud: it has arrived for good, as it is pivotal for being competitive and represents a key feature for the future of financial service providers. Cloud computing is a way for banks to store their data and applications, which allows them to keep track of just using simple software. The variety of products and services that the Cloud offers shapes a new horizon in terms of implementing their operations and delivering their services more quickly and efficiently.
The Rise of Fintechs
Even though Fintechs are still relatively new, they provide a wide range of advantages to the general public. They have reinvented customer service and have 24/7 access, offering their services via different channels such as social media.
Banks are using software technologies solutions offered by Fintechs in an attempt to group their operational capabilities.
Despite all this, Fintechs must keep working in the future on their lack of security procedures.
Blockchain and Cryptocurrencies
Blockchains are also becoming one of the safest ways to make a transaction from one party to another. Cryptocurrencies normally use this model for monetary operations, whose implementation is set in the years to come. Regarding the financial sector, these changes that blockchains are forcing will revolutionize the current sphere, as blockchain transactions are free of charge. Some voices claim that blockchains will replace brokers and bankers, as they will no longer be able to extract any benefit at all from these operations.
To finish up, it is clear that banks will transform the way that people are working and living, as technological progress will affect all sectors across our society. In ten years’ time, the relationship between customers and the banking industry will be reshaped and will be more interconnected and engaging. Financial institutions must dedicate a big portion of their efforts on making that relationship with their customers more prolific, in an attempt to satisfy their needs in a more secure, efficient manner.
Traditional banks will be in war with online banking services, and transfer fees will apply across the sector. It is certainly that openness and transparency are the basic premises of the banks of the future, which must deliver a paramount customer experience and embrace all the tech tools that are available to them.