An old movie All the President’s Men quotes “Follow the money”. When it comes to money bank is a much- needed term that should be next to it. Therefore layman language defined it as a place where one deposit and lend money. There are multiple financial institutions but banking is one that handles cash, day to day transactions, and credit. Banks have been transformed from their earliest prototype where grain loans were given to farmers and traders by merchants to the internet-based digitalized banking in 2020. Since the 1990s web-enabled banking remained an option and is rushing to develop a new era of banking by bringing digital infrastructure and customer-oriented hybrid services. A gigantic cultural shift is initiated to revolutionize the stiff structure of banks to boost them with a customer-focused digital banking environment. In the current scenarios where every industry has replaced its conventional systems with technological advancement which is now upgraded to the next level of Data Science and Artificial Intelligence, some emerging technology innovations have also seen seeping into the banking industry. Some of those areas are listed below.
Digital Account Opening
Account opening is the substantive affiliation and introduction of a customer to the bank which opens a way for both the customer and bank for setting a tone for their further relationship. Instead of going physically to the bank if people get access to the online opening account their experience with digital channels will enhance significantly. There seems reluctance all over the world for its large-scale practice because of the compliance perspective of most of the banks towards account opening. But banks opt for an alternative by keeping this process to its simplest and make funding possible then deal with mitigating risk and regulations.
Approximately 3.5 billion people all over the world have smartphones and their usage varies as people can utilize them for various activities. In the case of the banking sector, these play a pivotal role from checking account statements to online cash transfers and paying bills without visiting branches. Numerous banks have developed mobile apps that enabled a customer to make a mobile deposit at his comfortable place. Mobile banking is beneficial for both a customer and the banks because as apps are dealing the customer services so employees get plenty of time to complete other tasks. Ultimately is saving time at both ends.
According to Samsung’s intuition wearables such as smartwatches can open a new venture in future retail banking. For example, banks could greet their customer by sending a Bluetooth buoy to the smartwatches when they enter banks periphery. Another famous wearable might be smart glass for the bank tellers reported by Deloitte where tellers simultaneously could view the customers’ information alongside doing other tasks. So these distant technologies remove the gaps and allow banking right at the palm of our hands. There would be a completely different experience of banking from visiting a branch to everything at customers palm.
Have you ever ponder how Google Docs work? This is because blockchain is just the next level of google docs. When a document is created and shared with multiple groups instead of copying it this results in a decentralized chain through which everyone can get excess at the same instant. Similarly no one has kept waiting for the modifications because those changes appear in real-time to every individual with whom the doc has been shared. Whereas blockchain is more complicated and revolutionary because is set to completely transform banking and financial institution. Because of this tech financial management in banking is no more centralized rather central authority is shifted to extensive computer networks.Now the financial transaction is transformed into blocks and chains to augment cybersecurity more
Artificial Intelligence shows its potential in all the industries and its impacts are more vivid in the banking sector particulary for enhancing customer processes. So consequences are very much clear at all offices of banks including front, middle, and back from speeding banking processes, bringing safety measures in money transfers to efficiently doing back-end operations of the banks. $ 447 billion is an average estimation of cost saving in the banking industry by the year 2023 because of the application of Artificial Intelligence. It has been reported that three hot areas where banks can use AI tech for saving their cost are conversational banking which is also called the front office, anti-fraud dealings which is mostly the middle office, and underwriting which takes the back end of the banks.
Fruits of the technology are seen and experienced everywhere but a drastic change from the grains loan to blockchains and palm banking is out of the world.