The Commercial Banking Sector Needs to Utilize Information Technology to the Best Extent
The advent of technology has prompted commercial banks to utilize the latest technological trends to address the needs of its customers better. The recent times have seen the rise of several fintech solution providers who have been assisting commercial banks greatly in the delivery of sophisticated technological solutions to help them cater to client needs better. However, the million dollar question is: are commercial banks putting their best foot forward in the utilization of technology trends to gain a competitive edge? Several industry veterans opine that commercial banks can do a lot more in terms of intelligent technology adoption to gain a competitive edge. Recently, an online source stated that the renowned organization JP Morgan has been hiring talented individuals with a comprehensive understanding of Machine Learning to adopt the technology for the amplification of the organization’s capabilities.
It has to be noted that several reputed banks had embraced technologies quite early, as in the 1980’s and 90’s, long before the fintech wave garnered the attention of financial institutions worldwide. Several nations across Asia adopted the Total Branch Automation (TBA) approach. The advent of globalization, significant changes in trading regulations and most importantly the rapid technological evolution had left commercial banks with no choice but upgrade their existing infrastructure and amalgamate trending technologies with the traditional banking processes in those decades.
From a customer standpoint, banks need to put their best foot forward to help customers shun the age-old process of visiting banks for various transactions and instead create user-friendly interfaces for users to conduct transactions in an easy, hassle-free manner. Several banks have already introduced applications and e-banking procedures to cater to customer needs better. However, several industry veterans opine that banks need to push the envelope and do a lot more to steer ahead of competitors. Some feel that financial institution bosses need to consider cryptocurrencies and technologies such as blockchain and how effectively they can be utilized for the accomplishment of organizational goals. Additionally, commercial banks need to adopt technology foreseeing the needs of the future and must ensure that their solutions are not obsolete.