The Future of Banking and FinTech

By CIOReview | Monday, May 14, 2018
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Bankers have realized that customer-centric approach is the cornerstone to grow and achieve success. In order to stay ahead of the curve, most of the financial institutions currently are building product and service offerings around insights derived from customer data. As banks strive to keep pace with big players such as Apple in the mobile payment arena, it allows them to think differently and incorporate new and emerging technologies. Mobile technology is another trend that is sweeping through the banking industry as a part of digitization.

Key banking technology trends

Application programming interfaces (APIs) allow the banking industry to develop innovative, contextual solutions. Nearly 50 percent of global Tier 1 and Tier 2 banks will offer at least five external APIs. Banks are increasingly joining hands with fintech companies via open APIs. Regulators are facilitating open banking initiatives via APIs to third parties in providing access to account information and to transfer payments.

Artificial Intelligence is another big trend that will assist financial institutions to automate processes and enhance customer experience. Banking firms today are simplifying processes through intelligent automation, which in turn assists in retrieving data that has been conventionally wedged in complex systems. With the help of AI, banking firms can automate repetitive processes and significantly improve customer service via chatbots.

As security remains a major concern for financial institutions, these firms have started seeking new ways to add additional layers of security to protect their crucial data. To build the digital trust, banks today are investing heavily in next-generation security-based authentication methods such as biometrics, facial recognition and more. These authentication methods will help people overcome the burden of remembering numerous passwords and will help in simplifying security processes. To achieve success, banks are planning to take a relook into their internal processes and technologies in use to determine whether they are heading on the right path.