Prominent Developments in Banking and Finance Technology in 2022 and Beyond
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Prominent Developments in Banking and Finance Technology in 2022 and Beyond

By CIOReview | Tuesday, September 6, 2022

A growing number of apps have built-in artificial intelligence assistants that help customers manage their money effectively by categorizing spending patterns and suggesting ways where they can improve efficiency due to the increasing demand for digital services by customers.

FREMONT, CA: The previous several years have been difficult for many firms because of Covid-19. As a result of the pandemic, the rapid transformation of technology, and the emergence of new, technology-driven startups, old business, and work paradigms have collapsed within corporations.

The upcoming years will determine whether companies can thrive and survive in this dynamic climate. Technology is evolving rapidly, and tech-driven companies are emerging due to a boom in data generation due to digitally engaged lifestyles and increasing demand for quick and instantaneous access to services from anywhere via smartphones.

Over the next twelve months, let's examine some technological advancements that will impact financial service organizations the most.

Digitization of Account Openings

What is delaying the implementation of digital account opening in 2022? This should have been completed years ago. This is not complicated. According to Alex Johnson, Director of Fintech Research at Cornerstone Advisors and author of the Fintech Takes newsletter, financial institutions place a disproportionate amount of emphasis on digital account opening, as if providing an excellent digital account opening experience will magically increase customer acquisition. That is ludicrous. Changing the color of the storefront's exterior paint every year will not enhance the sale of products that are not appealing to customers.

Chatbots

One out of every four financial organizations anticipates investing in or deploying a chatbot by 2022. Eighteen percent of banks and credit unions have invested in chatbots so far.

It has taken some time, but the business world has finally realized that chatbots, or conversational AI more generally, have become a competitive need. Three causes promote the demand for chatbots:

Process Excellence: The banking industry's digital product application abandonment rate is astronomical. Even worse, a minority of colleges contact potential students within one business day. That is inadmissible. Banks must integrate chatbots into essential business processes (such as account opening) instead of employing them as generic sales and customer care tools.

Data: Attempts to codify and retain "data" collected through human interactions, including clickstream data, are insufficient, typically inaccessible to other programs that could benefit from the data, and challenging to analyze. The information gathered from chatbot conversations can help to mitigate these deficiencies. Not just sales and service plans but also data management strategies must use chatbots.

Personalization: Banks frequently consider personalization in terms of personalized messages. Intelligent banks recognize that effective personalization requires personalized conversations. They struggle to acquire the data necessary for effective personalization and creating possibilities for personalized discussions.