Technology has enabled banks to see their customers from a different perspective.
FREMONT, CA: People are too busy, and stopping by a bank branch is inconvenient. However, there is one thing many people carry with them at all times; and that’s their smartphone. Banking is becoming a technology-savvy sector largely due to mobile technologies. According to a survey, the number of smartphone users is steadily increasing and is expected to pass about 3 billion by 2021. The number of people using banking apps is also progressive. Here are some technologies that make innovation possible.
Open banking uses APIs to enable third parties to access customer banking data to create new applications and services based on this information. This data can be analyzed to get conclusions about their customer, which, in turn, can be leveraged to create customer-centric services. It means the transition from hypothesis-based to data-powered product development. Apart from enhanced customer service, it will promote quick prototyping and new revenue streams, providing APIs with access to the data to third parties.
This technology requires no introduction. Blockchain leveraged distributed databases and cryptographic encryption of data to house the history of transactions. The history is a ledger. Parties have access to the ledger, which cannot be edited because all records are interlinked and synchronized with the same information, which offers transparency for all transactions.
The perks of using a digital account are that customers never need to visit a bank to get service. Customers do all the financial activities through an app interface. Banks mitigate the cost of maintaining physical branches and service staff, so the focus is on offering cost-efficient and user-friendly applications and services. Neobanks understand customer demands, and so they shape their functionality accordingly.
Artificial Intelligence is a high-level term for various technologies, most notable being machine learning (ML), natural language generation (NLG), natural language processing (NLP). These technologies are powered by learning algorithms that self enhance by gathering and analyzing massive data. The banking sector is the leading area that focuses on developing and integrating AI for numerous tasks.