Innovations in the Banking Sector 2020
The banking sector is constantly evolving, new technology is continuously being introduced into banking systems and leaders in the banking industry are continuing to implement ground-breaking financial products and services. There has been strategic investment in banking innovations through crowdsourcing, piloting, collaborations and partnering to develop revolutionary banking solutions. With the ever-changing banking sector new regulations and revised banking standards have been developed. Digital-only banking is perhaps the most significant change that has happened in the financial industry in the last few years.
The Future of Banking Technology
With digital banking, back office cloud and analytics can provide customers with a customized user experience with everything from a customized user interface to customized support, fees and services. In the future banks will be able to fully customize their products and services to meet the needs of customers based on analytics and gathered customer information. Banks can create a customized end-to-end experience for their account holders. Each customer has his own personal banking needs and with a personalized banking experience banks and customers will benefit.
Monetization of Data in Banking
In the future banks will increasingly use their data analytics to make stock predictions; gain market insights; fuel AI tools for credit decisions; create marketing campaigns and to collaborate with retail companies to offer account holders special deals. Data monetization can include using data to gain new customers as well as creating new revenue streams and new products for existing customers. Customers are prepared to pay for financial data insights that can increase their profits.
Blockchain of the Future
Blockchain has been around for a while but it will be here for many years to come and the innovative technologies it brings with it will transform payment systems in the future. The changes in payment infrastructure will continue to increase payment volume thanks to the influence of digital valets; digital payments; the Internet of Things; direct corporate payments and payment apps. As the need for intermediaries decreases so will costs decrease.
Banking Technology Trends for 2020
The banking industry is privy to personal financial information on a daily bases and for this reason it is vulnerable to security breaches from within and from external criminal elements. Banks, mobile apps, third-party financial service providers and web portals are all highly susceptible to cybercrime. One of the trends in banking technology for 2020 is the need for preventing or at least minimizing security breaches and cyberattacks by using advanced technology. Security standards need to be intensified; cyber-security programs adopted; comprehensive risk and compliance introduced and uniform security protocols need to be followed by banks around the world. This banking trend will include the emergence of new job titles in banking like Cyber Risk Manager and Online Security Director.
The continued trend towards mobile banking is not slowing down. Mobile banking is destined to become one of the hottest issues in 2020 as financial institutions strive to keep up with consumer needs. Banking, as well as most other areas of our lives is now reliant to some extent on mobile devices. The expansion of mobile banking may mean fewer and smaller land-based banks and offer a solution to slow and heavy back office. The transformation to mobile banking is no secret; as a trend it is obvious to all players in the industry that this is the direction we are going in.
Robotic Process Automation
One of the trends in banking for 2020 is RPA which can be used by financial institutions to reduce costs, minimize human errors, save time and offer customers a more efficient service. Robotic Process Automation can be used to provide virtual assistants; to handle simple and common enquiries; to ensure compliance and to perform repetitive and labor-intensive tasks without human intervention.
Profound changes are expected in banking regulation in 2020. With the introduction of innovative banking technology there is a need for new and revised regulations relating to data privacy, sustainability and accountability. One of the biggest changes in the last few years has been PSD2 enabling customers to use third-party providers for their financial management. This has opened up the market creating greater competition. Changes in regulations are forcing banks to upgrade their banking software making core banking technology an important issue for banks in the future.
Voice-controlled devices are a major trend in banking technology for 2020. With an increasing numbers of people using voice-controlled devices for online searches and digital interaction banks will need to adjust their products and services to meet this trend. Voice technology in banking can improve the customer experience especially for the new generation of customers that relies on technology for almost every aspect of their lives. In the future customers will be able to use voice technology in mobile banking to carry out basic banking processes like opening a new account and use chatbox solutions for customer service interactions.