Technology has permeated every aspect of modern human life. From when you make coffee in the morning to when you turn off the lights for the day, you are inadvertently in constant contact with technology. Therefore, it is no surprise that the banking and finance industry has undergone a technological revolution in recent years. The financial landscape of today is miles ahead of what it was a few decades ago, and it is all thanks to the digital and financial trends that shape the industry. Below, we look at some of the most recent trends in the field and what they mean for the future of banking.
Mobile Banking
Mobile device proliferation is growing by the day. And as more people make mobile phones their primary communication device, financial institutions are changing their marketing approach to a more mobile-centric approach. This is why virtually all banking institutions now offer mobile banking services. These services allow consumers to complete transactions from their accounts through their mobile phones. The move has powered other industries, including online gaming and gambling, where consumers can find cash app casinos at Best US casinos that allow them to make deposits and withdrawals through their phones. According to Statista, the trend is so powerful that there will be an estimated 1.75 million mobile bank users in the US by 2024.
Artificial Intelligence
The impact of artificial intelligence, AI, is surprisingly present in most industries today, including banking and finance. In this market, AI is used to provide automated customer service 24/7 so that customers can receive answers to their questions faster and outside of regular customer care hours. This use has had both positive and negative impacts on banking and finance. On the one hand, it has made customer service jobs nearly obsolete. But it has also made consumer-provider interactions faster and more convenient. Banks and financial institutions have also recently been using AI to study transaction histories and provide customers with more personalized services, increasing consumer satisfaction.
Blockchain
Blockchain technology was initially viewed as a threat to the banking industry. Consumers seemed more intrigued with cryptocurrencies, which offered a faster, more secure, and unregulated mode of transaction. But rather than fold under pressure, banks and other financial institutions seem to be riding the blockchain wave. Multiple providers have set up crypto exchanges, with others even experimenting with digital currencies of their own.
Cybersecurity
Digital banking is faster and more convenient, but it also introduces new risks to the financial industry. The most pressing of these is cybercrime. In response to the vulnerability created by putting your services on a digital platform, banking institutions have been investing heavily in cybersecurity tech and services. The measures are designed to detect and prevent fraud and include AI, machine learning, site encryption, biometric authentication, and multi-factor authentication, among other technologies.
Augmented Reality (AR)
The full impact of AR on banking – any industry, really – is yet to be felt. Nonetheless, developers are working on taking online banking to the next level by allowing consumers to interact with their accounts and bank representatives in virtual environments. Moving forward, we may see financial institutions adopt tech trends like the Metaverse to make this a reality.
Digital Banks
Digital banks are somewhat similar to mobile banks, except these institutions do not have a physical location. The digital-only business model has become increasingly attractive to many providers as the low overhead costs allow them to offer lower fees and attract more customers. Moreover, digital banks are proving very popular among millennials, who prefer to do most things online these days.
The Future of Banking
Banks have been a key economic driver for centuries, which dictates that they have to keep moving with the times to maintain viability. The ever-changing digital landscape has had significant impacts on the financial industry, as is evidenced by these trends. Moving forward, we might see the banking landscape change to adapt to moves in the technological fields in a bid to retain its customers.