THOUGHTS

Fast Forward: Technology Trends That Will Transform the Future of Banking

Aug 31, 2018

The future of banking will be considerably different from what we see now. Today, fintech firms are capturing more of the retail banking’s value chain, providing services such as payments, checking, and even savings accounts that could erode the traditional bank’s revenues to a large extent in the foreseeable future. This is prompting several retail banking companies to contemplate the options to step up their services and move to platforms that give a “more digital” experience to the customers.

Customer behaviors and expectations are quickly shifting to more personalized and instantaneous services that are provided preferably on their mobile devices. Modern retail banking customers don’t prefer to eliminate processes such as having to go to branches to get banking-related work done. Rather, they want financial information and the ability to transact at their fingertips. Let’s take a look at some of the top trends that will revolutionize the future of banking.

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Future of banking

Upgraded ATMs

Advanced ATMs are one of the largest tech trends in retail banking that has revolutionized the whole banking system since their inception in 1967. The future of banking is expected to witness contactless payments in ATMs. Customers will be able to conduct contactless ATM transactions using a smartphone. Several innovations in this space have already been implemented; for instance, the iris recognition used at Qatar National Bank ATMs and biometric authentication has already been implemented in many ATMs in India. These technologies enhance retail banking security and prevent hacking and such illegal practices.

Wearables in banking

Wearable technology is all poised to go mainstream in the future of banking. Smart watches could be used in retail banking to push personal greetings to customers through Bluetooth beacons when they enter a bank’s location. Smart-glasses for bank tellers is also an innovation that is being considered for implementation. This can be used to process customer banking information for the employee as the employee is simultaneously doing other customer service tasks.

Use of extended reality

Extended reality refers to all real-and-virtual combined environments and interactions of human machines that are generated by computer technology or wearables. This includes augmented reality (AR), virtual reality(VR), and mixed reality (MR). Using these technologies could help create more meaningful customer engagements and also enhanced workforce performance. For instance, South Korea’s Hana Bank is delivering mobile mortgages to customers via augmented-reality applications on their phones. Such practices build immersive and engaging experiences for customers, also making banking less of a chore in the minds of customers.

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In-store style experience

Imagine entering into a bank and getting the feel of being inside an Apple store. That’s exactly what the future of banking will look like. It is now possible to easily transact through banking apps or locate the nearest ATMs. So, the only way retail banking companies can increase their walk-ins, in the long run, is by providing top-notch in-store experiences to customers. There will be more facilities inside banks to direct customers to interact with tech kiosks for some transactions. Reserving person-to-person interaction for answering questions or addressing needs that are unique to the individual consumer is another facility that banks seek to provide its customers in the future.

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