1. Artificial Intelligence (AI) and Machine Learning (ML)
Going by the 2018 Accenture report on banking technology, 83% of bankers in India believe that AI technology will work along with human agents soon. AI-driven chatbots are now trained to converse like humans and respond intelligently to customer queries. Even your banking customers today prefer to talk to a chatbot and answer common queries before speaking to your sales or customer service agent!
Although it’s still in a nascent stage, AI and ML offer immense potential in financial fraud detection – by identifying any fraudulent data patterns in new transactions. AI-based algorithms also offer high levels of accuracy in validating credit risk models that determine the profitability of your bank!
While AI technologies have been prevalent for some decades now, Blockchain has emerged as an exciting digital technology in recent years and is poised to change the way you do digital banking in a significant manner. With blockchain-based banking, your bank can now process payments faster and accurately using distributed ledgers.
The use of blockchain in digital banking can reduce your transactional costs – and also lead to the development of new banking products and services that can generate new lines of revenue. What about Big data and cloud computing – how are they impacting the BFSI sector? Keep reading.
3. Cloud technology
With the increasing volume of customer data, banks are keen to boost their digital capabilities in handling this data – along with enhanced security and agility. This is where cloud-based technologies and platforms are set to make a major difference. Thanks to the adoption of cloud computing services, you can now extract deeper insights from customer data using data analysis and storage tools.
Apart from reducing operating costs, cloud technology can enable you to improve your bank revenues, client service, and overall efficiency. The cloud is certainly making it easier for you to respond to changing customer needs and automatically scale your computing resources in tune with customer requirements.
4. Mobile banking technologies
Yes, mobile banking is no longer a new development – and has been around for some years now. However, what’s really exciting is that with further developments in mobile technology, your customers will gravitate more towards their mobile phones for any – and every – banking transaction. According to an AT Kearney survey, 85% of banking executives believe that mobile technology will eventually replace computers as the preferred touchpoint for customers.
What will the future of mobile banking look like? Apart from the increased use of mobile wallets for digital payments, we are witnessing technology trends such as mobile biometrics (instead of passwords), P2P payments (for faster remittances), and voice-based searches.
5. Robotic Process Automation (or RPA)
No, we are not talking about robots taking over banking. Using Robotic Process Automation, banks and financial institutions can create pre-programmed processes that can self-learn from existing data patterns and business decisions. This can reduce your overall administrative costs by 50% while improving the quality and speed of your banking process.
For the banking industry, RPA can also simplify compliances by automatically generating auditor reports and maintaining details of automated processes. Along with cognitive automation, RPA will help you deal with a problem of the future – that is data overload.
Advanced technologies like AI, Blockchain, and RPA will continue to drive transformations in the Indian BFSI sector. Apart from reducing operational costs, these next-generation technologies will elevate the online banking experience for young customers and help you extract business insights from the large volumes of customer data being generated daily.
The benefits of investing in these technologies today are going to be widespread – hence this is the right time for you to explore them!