In this digital era, the banking industry has embraced technology to serve its customers promptly and precisely. There are many advanced technologies that have changed the banking industry from branch- and paper-based banks to”networked and digitized banking solutions.”
Technology has changed the accounting systems of all banks. And, it’s now revolutionizing the way retail banks are offering their services to their consumers. An example of this would be core banking that has interconnected various banks and allowed the customers to do ‘anywhere banking.’ In this blog post, we will discuss the technological advancements that have revolutionized the banking industry.
1. No more queuing
Gone are the days of standing in long queues to withdraw money, update passbooks or make payments. Now, almost all banks offer online banking and mobile banking services that help you execute your banking tasks from home. This technological shift has made it possible to do many banking tasks online, from simple transactions to complex tasks like applying for a mortgage.
According to a recent study by YouGov, one out of three retail banking customers feel that their banks’ mobile apps are not as good as their online banking options. This dislike could be detrimental to banks like Simple in the U.S. and Smile in the UK which are only available virtually, meaning that they do not have any physical branches at all.
2. One quick tap and you’re done
The first contactless cards were issued by Mobil in the U.S. to use at petrol stations as early as 1997. Now, there are more than 45 million contactless cards in circulation in the UK. By the year 2011, mobile application technology had merged with contactless cards, and the first wave of apps that allowed their owners to pay by simply tapping their smartphones against the terminal was born.
One of the most popular wallets in the world, Google Wallet is now allowing its users to store their credit, debit, loyalty gift and store cards on their smartphones. A few years ago, London buses in the UK opened their doors to contactless technology that allows people to pay their fare with a quick tap of the card as they step onto the bus.
3. Wearable Banking App is a new trend
There are many banks that have already tested out wearable apps on smartwatches. However, the applications remain limited. According to Balazs Vinnai, general manager of Digital Channels, it’s not a lack of customer interest that is holding back banks from further investments in this area. However, banks continue to face some challenges with their digital strategies, therefore, it’s no surprise that only a few banks support wearables currently.
According to the recent report of finch firm, 96 percent of banking professionals polled believe that various wearable tech will impact banking industry, but only 15 percent of banks are rolling out their own wearable apps at present. However, the majority of banks expect to do so within the next two-three years.
4. Finance sector is reaping benefits of the IoT
In this era, we are all surrounded by internally connected devices, from wearable tech and smartphones to the many sensors in our homes, on our roads, and in our workplaces. IoT is spreading its wings to help us work smarter, drive safer, save time, and live an active and healthy lifestyle.
The real-time data created by the IoT, if made available to banks, would allow them to make informed commercial decisions and better assess data for risk. In addition to this, positional and biometric sensors, for example, can help banks track individuals’ physical performances as well as track the goods shipping and manufacturing quality control better than ever before. All this process, in turn, will help banks to improve the underwriting processes.
If you’d like to learn more about digital transformation, be sure to check out TMC (News - Alert) and Crossfire Media’s newest conference and expo, Communications 20/20, happening July 18-20 at Caesars Palace in Las Vegas. The event will focus on the next wave of technology and innovations that will transcend the importance of person to person contact, disrupting the future of the entire communications industry. Find out more HERE.