With many banks under pressure to deliver better customer experience and boost their revenues, they are turning to emerging technologies to be able to meet new market demands. Aside from automating their processes, banks are also integrating services into the cloud for better accessibility. Below are the top five trends in banking technology that will transform the industry in 2018.
Enhanced Services Using External APIs
Banks have used application programming for a long time, but recently, it has turned towards APIs-software intermediaries that connect applications-to improve the types of services that they can offer to their clients. APIs provide banks with innovative solutions to customer problems. It is predicted that the top banks in the world will partner with financial technology companies to offer a better banking experience to their clients. However, there should be new banking regulations implemented around external APIs, so that customer data is protected when shared between the two companies/applications.
Security has always been the top concern for most banks. Recently, banks have looked into the use of biometrics to secure clients’ accounts. This is especially true for people who use their smartphones to access their banking information. Recently, many banks have looked into scanning thumbprints, facial recognition, and voice prints as authentication methods. Banking in the future will no longer need lengthy and complicated passwords that need to be changed every 3 to 6 months.
Mobile Banking Technology to Become Frictionless
Mobile banking has been around for a long time but what innovation will it adapt to in 2018? Mobile technology will become more data-informed and enriched to create a frictionless experience. New services will be offered such as new cryptocurrency opportunities, password-free biometrics, consumer-to-consumer one-click payments, and more. It is expected for more banks to come up with different apps so that they can provide a better experience to their customers as well as compete with the vital fin-tech players in the industry.
Utilization of Artificial Intelligence for Better Customer Experience
Artificial intelligence will play a vital role in automating the processes of the banks as well as improving the customer experience. Banks are now simplifying their processes using A.I. The bank’s services can adapt depending on each client. In the future, chatbots will play a vital role to help customers with banking, and they will have a brain of its own to detect the banking needs of individual clients.
IoT On Small Scale
The Internet of Things will also play a vital role in the banking technology trend of 2018. Banks are using highly trafficked branches to test IoT technologies so don’t be surprised if you walk into your bank and your biometrics authenticate you through new beacons and sensors installed all over. This can send a signal to the ATM to pre-stage a cash withdrawal so that you don’t have to waste time for your turn. The Internet of Things will improve the customer’s banking experience.
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