Future of Banks

By CIOReview | Monday, February 11, 2019

Banks today are practicing with a faster pace of innovation, using data and analytics more extensively. Digitalization drives banks to be more innovative in targeting, expanding services, re-configuring delivery channels, and integrating payments. Following are some of the banking predictions:

Advent of Open Banking: Open banking APIs expand banking ecosystems by bringing innovation and collaboration. The ecosystem focuses on how to make consumers’ lifestyle better. Also, it follows consumer consent and includes it as an open banking strategy to increase the emphasis on consumer value prepositions. It tells legacy financial services organizations how to build on their existing customer relationships. Banks are the pioneer of the personalized financial services by giving customers choice and control of their data.

Phygital Advances: The recent development of the Internet of Things (IoT) is the phygital component. It is the combination of both digital and physical experiences to achieve a specific marketing goal. The technology can reshape industry training across multiple sectors. Augmented reality, which is an example of phygital technology, is used to interact with simulated equipment. Phygital advances are used in the luxury goods and fashion sectors to fill the gap between customers who want to have physical and online shopping experience.

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AI in banking: Financial organizations are now moving to predictive banking. Banks combines internal and external data, constructs predictive profiles of customers in real-time. It improves consumer engagement and satisfaction and tights security and increases efficiency.

Innovations in Payments: The technological advances constantly drive payment in banking. Its effectively increasing customers’ expectation of the process of payments. Banks seek more innovation in the methods of payments to deliver customer experience better. Internet of things (IoT), mobile wallets, cryptocurrencies, and the blockchain are bringing innovative trends in payments. These innovations will help to lower transaction fees, increase the importance of differentiated user experiences and implementations of a vast array of data.

The banking industry becomes more strategically focused and technologically advanced for customer services and challenges.