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techsuch May 9, 2021 0 Comments

Emerging Technology Trends for Banking Industry in 2020 & Beyond# Emerging Technology Trends for Banking Industry in 2020 & BeyondBanks around the world are taking advantage of new technologies to streamlinetheir operations and provide a better experience to their customers. Find outthe latest trends that will disrupt the banking industry in the future!Today, we live in the digital era where technology is driving change in almostevery industry, whether it is the use of smartphones, automation to improveoperations, cloud computing to collaborate, data analysis to extract insights.Smart use of technology is becoming an integral part of the success inbusiness. However, no industry is as driven by technology as banking is. Astudy by PwC says more than 81% of banking CEOs are considering the impact ofdigitization in the finance world. There are several financial organizationstrying to keep up with the latest tech trends like chatbots, ArtificialIntelligence (AI), Blockchain, etc.With so many competitors vying for your customers, the only winning point isto keep track of the recent trends and start to implement them in the betterway before your competitors bring about the change in the field. Get immensebenefits and improve business results by keeping in mind the latesttechnologies.# Technology Trends That Will Disrupt the Banking & Financial Services## ChatbotsCustomers today don’t have the patience to wait for long hours and get theirqueries resolved. Instead, they demand quick response and effective resolutionof their issues. Chatbot has made this possible in banking organizations.Supported by AI technology, chatbots are used by many finance companies toreduce costs and meet ever-changing expectations. Now, users no longer dependon traditional methods of two-way communication like email, phone, etc. Reportby Gartner states that more than 85% of customer service interactions will behandled by chatbots in 2020.Chatbot helps in encouraging conversational banking by providing anexceptional experience that can be personalized to meet exceeding customers’expectations. Brands like Bank of America, Capital One, etc. have been usingbots for many years to resolve simple queries. However, today’s advanced botscould offer financial tips, detect fraudulent activities, and even assistcustomers during registration. They can help in making smart conversationswith millions of customers, just at a fraction of the cost that would havetaken by using human customer agents. This technology not only helps thebanking world to provide centralized financial management but also improve theway customers connect with their banks. The right Chatbot Development companyis all you need to get your own banking bot and replace human agents forbetter savings.Calculate Chatbot Development Cost in Few Clicks## Big DataWith the increasing amount of data generated every day by the banking sector,it is becoming difficult to extract actionable insights that can help ingrowing more opportunities. Big Data is the answer! This technology hasundoubtedly put all the banking data i.e. debit/credit card transactions, ATMwithdrawals, money transfer, etc. to make informed decisions and process iteffectively to gain valuable information that is needed to stay competitive inthe future.Big Data helps in making banks learn about their customers in a better wayenabling them to make real-time business decisions through analysis ofcustomer’s purchase habits, sales management, etc. Other added benefits of bigdata are better marketing, product cross-selling, fraud detection, customerfeedback analysis and many more. Additionally, it aids in identifying thelatest market trends and streamlining internal processes to reduce risks.## Blockchain IntegrationBlockchain is known for cryptocurrency like Bitcoin that helps in keepingtrack of transactions in a secure and verifiable way. Talking about securityin banking institutions, blockchain will surely disrupt banks by improvingsecurity, saving money and improving customer experience. As blockchains arehighly secure and easy to operate, it can be used for promoting transparencyduring payments & currency exchange in banking.Blockchain acts as a decentralized database and helps in protecting customers’personal and financial data by storing all the information about real-timepayments & profile details on multiple blockchain servers. This resolvesissues like fraud detection and cyber attack prevention. The need for thirdparties will be removed in the loans and credit system using blockchain makingit more secure to borrow money and reduce interest rates.Calculate Big Data & Blockchain Integration Cost in Few Clicks## Artificial Intelligence (AI)Banks have benefitted enormously by adopting newer technologies like AIresulting in lower costs and more revenue through multiple channels. A reportfrom Business Insider Intelligence says the average estimated cost savings forbanks using AI is $447 billion by 2023. Let’s find out banks are using AI! Itis mainly used to streamline customer experiences with robots and chatbots.One common example is using AI to facilitate mobile banking enabling customersto get 24/7 access for any banking operations.AI also helps financial institutions to make more effective lending decisionsand better risk management. This technology work along with other trends likebig data analytics, voice interfaces, RPA, etc.## Cyber SecurityBanking is one such industry that deals with sensitive & personal information,which has made it an attractive target for cybercriminals. Though it isimpossible to prevent all the cyber-attacks due to the diverse interactionswith customers’ money, security is essential and bank institutions must beready with the plans to minimize the damage if any mishap occurs.Banks must share best practices and knowledge to help customers avoid thechances of cyber-attacks. Additionally, they should invest in technicalmeasures like working with the government to prioritize cybersecurity,educating customers about their cybersecurity responsibilities, roles inkeeping their data safe.## Robotic Process Automation (RPA)Using RPA, the bank can use customer service bots to deal with low-priorityquestions from customers like account balance check, payment queries, etc. andsave the time of human agents to deal with high-priority concerns. This willnot only improve productivity but reduce labor/operational costs and the errorrate. With instant resolution through RPA, users can make a quick decision fortheir credit card application without getting any human agents involved in theprocess.Though robotic innovations are still in the adolescent phase, bankingorganizations should be aware of all the benefits it offers to maintain long-term AI results. Leverage RPA technology to deliver the best possible customerexperience in the banking world through robots and virtual assistants.Automate your repetitive tasks without human intervention and save costsefficiently.## Cloud ComputingAnother latest trend of the banking industry is cloud computing that will make24/7 customer service possible providing any time service to customers. Thisenhances the performance of financial institutions and scale-up services morequickly. Customers will only pay for the services they need enabling banks tocontrol costs.One can easily avail pay-as-you-go pricing by paying the cloud provider as perthe usage, making it easy for individual customers or businesses to use thecloud. In the banking industry, cloud computing can promote safe onlinepayments, digital money transfers, wallets, etc.Closing StatementWith the introduction of new technologies, the face of the banking industryhas changed tremendously over the years. Now, the banking process is muchfaster than before and more reliable. The customer relationship with banks hasnot only improved but the number of the customer base has also increasedbecause of the benefits like anywhere banking. While banks deal with risingdemands, increasing flexibility needs, new demographics, etc., technologiescome into action to deliver efficient customer experiences. Chatbots is one ofthe most emerging trends that will impact the banking industry by saving costsand improving productivity. Get in touch with experts of AI chatbot solutionproviders to drive a radical shift in the banking world with these top trendsin 2020 and beyond.

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