Technology is having a significant impact on financial services, and the bank that doesn’t figure out how to capitalize on the changes and developments will get left behind. There are a number of technology systems and software programs that can be leveraged to your bank’s advantage, but innovation continues to requires banks, credit unions, and financial institutions to adjust their strategies as needed. These are a few of the important areas where your bank can elevate its operations.
AI and Big Data
Consumers are generally quick to make their wants and needs known, but big data and AI are also revealing what consumers didn’t know to ask for. People want a financial institution that is listening to their needs, whether the needs have been vocalized or not. They want direction on what product or service to buy, and they want continual access to their financial status. Using artificial intelligence, customer experiences can be transformed but on a personalized level. The collaboration between man and machine occurs through Commercial banking software that can analyze massive amounts of consumer data and determine what activities or needs can drive the consumer forward. Though a machine may be processing the information, the delivery of services should seem humanized and personalized to the individual customer. This data would provide real-time views of consumer behaviors, and the AI-based software would then mine through information to identify key consumer signals. All the while, the AI processing system would continue to learn and adapt to consumer behaviors.
Voice-First Banking Systems
With the use of Siri and Alexa at the personal level, it is only logical to assume that intelligent assistants would be developed for commercial industries. Within the banking industry, these intelligent agents are kept separate from the fundamental software powering voice-first devices, but yet can be activated by voice commands to connect users to different systems or services. Using voice-prompting, consumers will be able to conduct their banking business using voice-tech to make a transfer, execute a payment, or to set up account alerts. As the tech continues to develop, the power of AI and software developments that connect to voice commerce will open new doors in banking potential. It won’t just be a standard or scripted response from the voice-service. Conversational tone and language will make the experience feel personal.
Cybersecurity Measures
The increased use of technology and both consumer and institutional use of digital channels has made the financial institution more susceptible to cyber-attacks. There have also been changes to the regulations that make the systems more open and vulnerable, and yet it seems that banks are still busy playing catch-up to the threats. Software programs that can offer data protection are just a small part of strong defense, and encryption, secure storage applications, and digital signatures are just a few of the security areas that banks need to explore. Despite the threat that digital services present, consumers are comfortable with the practices and prefer them over traditional banking measures.
Cloud-Based Measures
The cloud has been used for storage and software hosting measures, but there could be a move to cloud-based core banking in the near future. According to recent data from the American Bankers Association, banks are becoming more receptive to the idea of core banking projects be launched within the cloud. Legacy infrastructure is time-consuming and a great security risk, so moving to cloud-based tech and software can increase efficiency, security, and improve cost savings. A cloud-based system will automate workflow and operations to a level previously unseen by traditional banks and credit unions.
Technology is going to continue shaping the future of the financial sector, with banks both large and small needing to get on board if they are going to remain competitive. Both software and machine will continue to evolve, with these areas being just a few of the predicted trends.
