Bank on the Interest’ing Overdue of tech-revolution in Financial Services

In this technological era, most businesses are transforming with a rapid speed to become more adaptable, fast-paced, and advanced. Especially in terms of their systems, processes, and methods of operations to increase efficiency and decrease cost. Due to the unpredictability of market and the cut-throat competition, every industry at some point of time has to ride the wave of technology and Banking Sector is no different. The time has come.

Businesses and individuals all around the world need systematic technological support in order to ensure secure, safe, and quick banking activities that help them achieve banking objectives with more and more accuracy, productivity, and control that too in a timely manner.

This is a tough demand to satisfy since it covers the globe and competition is beyond tracking. Every country, government, and business wants exactly the same. Impeccable security and safety with unstoppable pace and ultimate accuracy. It already sounds too difficult a task!

faceless woman inserting credit card into subway ticket machine

The transition from traditional banking approach into a modern one has already started to pick up speed in the last decade. Keeping up with the pace, the future is here, we are living through a golden period of technology where internet, mobile, and computers are not considered the latest technology anymore.

There are several different technological milestones that further enhance our banking tools whether they are used for investments, purchases, expenditure, or any other financial activity. This is an era of data, incredible software systems, Machine Learning, and AI.

Banking of the present includes Internet Banking, Mobile banking, Digital Communication, and Digital Records. However, it does not have to be limited to such a narrow approach. There are several different leaps and bounds ready to be crossed. Going beyond the limited present utility of online resources and generic internet banking has to adapt to the coming future. We are on our way to the next big tech-revolution of Banking Sector!

men in corporate attire working in an office

1. Automation –

The most visible change in Banking sector has to be the introduction of automated machines. We are slowly and steadily moving towards complete automation of Banking activities. The crowds at banks and financial institutions have decreased significantly due to this change. Today we use automation for communication, accounting, dispatch, and/or data management. However, going forward, most if not all Banking activities and their records will be automated and linked to every ID supporting complete automation.

robot pointing on a wall

2. AI & ML –

With the rise of Artificial Intelligence and Machine Learning, we can expect banking systems to be smarter and more efficient. The customer experience can be heavily enhanced by learning about customer patterns, financial behaviours, transaction histories, and other records. Many mobile applications and websites have already integrated the softwares trained to self-learn and solve new problems in the communication, data management, and/or operations.

3. Unified Payment Method –

In future, we can expect every online payment method to be integrated with one single software or maybe one single tool such as multi-cards or block chain that will manage all data securely and simultaneously keep the user updated about his/her whole financial history and present. This change will solve all the confusion, inconvenience, and delay caused due to a variety of payment options available with many variables involved. This solution will get rid of those inconveniences.

4. Blockchain Technology –

We are already in the initial stage of adopting blockchain technology for smart contracts, tokens, monetary transactions, sales and purchases etc. This technology is safer, more stable, and consistent with the purpose of protecting information throughout its network. This can be very useful in eliminating corruption and mis-happenings caused due to manual errors.

We can expect a new form of currency soon as India announced its own variation of cryptocurrency recently. Many countries already have their own cryptocurrencies and there are chances that our banking will make a complete shift to blockchain!

5. Cyber Security –

Below are some of the glaring facts that will wake us up real quick!

  • From February to April 2020, Cyber attacks increased by 238% in Financial Sector.
  • The sector makes up to 35% of all data breaches and 25% of all malware attacks.
  • According to Boston Consulting Group survey, wealth managers scored 1 out of 5 rating on cyber security preparedness.
  • According to Forbes, cyberattacks cost $18 million per financial firm.
  • According to IMF, cyberattacks cost $100 billion in losses to financial institutions worldwide every year.
  • And 70% of the financial companies have experienced security incidents at least in a year recently.
  • The security leaders at Mastercard said they face at least 267,322 intrusions every 24 hours.
  • Finance and Insurance sector is the most attacked industry in 2019 for the 4th year consistently, accounting for 17% of all attacks among the top 10 attacked industries.

All of these facts indicate that there are many things that require our urgent attention including the next tech-revolution in Banking sector. Hope it was a helpful piece, feel free to comment and share! Good day!

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