How Technology is Revolutionizing Banking

by TBF Finance

As paradigm shifts in technological advancements, customer demands continue to reshape the way the global industrial ecosystem conducts their businesses. With that, technological evolution is rapidly being harnessed to enrich the existing landscape. 

Today, financial technology is revolutionizing existing traditional banking models and extending the reach of financial institutions to untapped fields.

As a result, banking is taking newer forms while service rendering is taking more sophisticated shapes. To discuss this, we’ll explore how technology is giving banking its face-lift with payment processing.

1. Provision of Mobile Banking Apps

The financial services industry has given people the opportunity to connect and have more access to their financial accounts. This is a perfect option as a large percentage of the finance industry customers are made up of the millennial generation who prefer to be in charge of their finances. In fact, you no longer have to worry about your money in the bank when you’re travelling around the world with travel banking.

These days, consumers can purchase and sell bonds and stocks with their cell phones. Banks are now letting their customers have access to their financial accounts with mobile apps. 

2. Improved Customer Relations

The general industrial landscape is continually impacted by variations in consumer demands. Banks have, for years, been reliant on the dynamics of human needs to fashion their solutions and services as well as meet up with the rising competition.

Today, banks are fast turning to the innovative power of technology with electronic payment systems to advance the move of their services to broader landscapes. Bringing this into focus are the statistics that reveal 50% of surveyed companies are of the opinion that shifting focus to customer centricity in companies is their strongest strategic priority. 

With the rise in AI and ML-enabled solutions, insights into the variations in consumer trends are gained and previously inaccessible fields are explored for anticipating the needs of clients and target market.

Nowadays, chatbots are revolutionizing the way bank consumers interact with banks and expanding inclusion. Banks are generally employing consumer-friendly software programs with interfaces that enable easy interactions remotely. 

For instance, payment gateway options are optimized to include consumers from various locations – which ideally is set to foster globalization.

3. Financial Inclusion and Globalization

According to a report on mobile tech spurring financial inclusion, 93% of adults in high-income economies own mobile phones with 73% of the world’s developing economies have access to mobile phones.

The world’s access to mobile phones, especially smart devices is giving banking and inclusion a general facelift. Banking solutions are now being fashioned to include various populations. There is a rise in consumer-friendly solutions that brings into focus the unbanked sector.

Banks, for instance, are employing the power of Blockchain through cryptocurrencies for their cross-border services. As such, they are able to foster globalization amongst populations.

There are financial-based sites set up to enable people to switch between banks and customize our product types. This is particularly beneficial for eCommerce.

4. Security Enhancements

Technological evolution has influenced security in various sectors. Today, cybersecurity is a constant issue with financial institutions such as banks, especially with digital solutions at the peak of their services. 

The various options of transactional procedures such as mobile and digital banking made available for the ease of customers have made it such that bank transactions and proceedings are honeypots of sorts for cyber crimes especially with their constant sophistication.

Recent studies on the rise of cyber attacks show that more than 50% of web applications have a public loophole for attackers to exploit. This tells us that FinTech adoption is becoming a basic on the bandwagon of banking activities, it is evident that cybersecurity must take more exclusive forms to ensure consumers feel secure. 

Technology has also given way to various solutions to these schemes. There is an increase in the adoption of biometrics standards within financial institutions. By leveraging Big Data and deep learning capabilities of AI-enabled systems, banks are rapidly gaining an edge in fraud detection and blocking malicious machinations. 

Blockchain-enabled solutions are also proffering solutions to these issues by extending the concept of transparency and decentralization to bank transactions through the power of digital ledger technology.

Technology Continues to Revolutionize Banks

These few instances given above are just some of the numerous ways that the finance industry is experiencing online banking benefits due to the advancements in technology. 

The primary disruption is leveling the field for competition and advancing the way financial institutions are rendering services. Today, the world has seen a rise in mobile and online banking all aimed at advancing globalization.