Banking Tech - What is the new role of technology in banking?
Updated: Jan 17
A new age of technology exists, and things are moving very fast. Because of this, the banking sector has begun to utilize more of the modern technological advancements. Many of these advancements are leading banks to use data and artificial intelligence (AI) for higher levels of personalization and consumer fulfillment. These trends are only going to grow. Here is a look at the role new technology plays in modern banking.
Keeping Up With The Disrupters
While many in the banking sector were trying to maintain the status quo, disrupters turned up with digital banking and financial solutions utilizing modern banking tech and the mobile devices. These developments forced all banks to reevaluate and start to implement changes to how they service their customers. Now, most banks have applications that work fast and provide services people want their banks to provide.
Mobile technology is playing a significant role for banks, and fine tuning those digital offerings is something into which these banking institutions have put a lot of effort. Artificial intelligence (AI), big data, and predictive analytics are becoming the norm in the banking industry for these reasons.
Bringing Core Services Online
Along with the mobile push comes the push to put core banking services online in general. Banking portals of the past contained heavy limits and often did little to improve a customer’s experience.
Forward-thinking banks have started to utilize modern techniques to attract customers to their financial solutions, and allow customers to make banking decisions quickly and without hassle. Responsive design and a focus on turning technology towards customer service have created vast improvements for the banking industry.
Once again, a lot of this comes from investments in analyzing data and AI. This is especially true of online banking services that can help someone in real-time. By anticipating their questions, banks can provide automated and personalized solutions. Banking tech is assisting financial institutions to do more while saving money in the process.
Creating and Fostering Greater Levels of Personalization
People want to feel like their financial institutions know them, care about them, and are looking out for them. People interact with their banks and bank products all the time and with greater frequency. Each of these interactions is an opportunity for a bank to learn more about their customer.
For example, consider someone who regularly loads funds to their favorite coffee store mobile app every week for a year, from their bank account. This transaction trend reveals one particular behavioral characteristic about the customer that, along with other data points, present your financial institution with information about the customer’s preferences and lifestyle. Over time, as new transactions and transaction types are analyzed, and the historical amount of data available to analyze increases, new opportunities to cater to specific customer needs will be identified.
In the near future, a financial institution will be able to anticipate a customer’s needs and gain insight into what the bank can further do to retain that person and other people like them. Advanced data analytic solutions make it easier for banks to identify trends and make individual suggestions for how to engage customers, that work on a more personal level.
AI, along with advanced data analytic capabilities, help banks learn more about their customers and how to take care of them on a personal level. The fact that data analysis can create a more human experience for customers is one of those areas in which banks are finding a lot of value in, and is one area that will also create a healthy return on investment into the future.
Data Science and data analytics plays a crucial role for banks at every level and in every department. In this way, technology serves to unify many of the disparate banking departments so the bank can create a better, more secure, and personal experience for each of its customers. Financial Institutions who aren’t doing this, or planning to do this, will find themselves left behind. Reach out to our team at Insight Financial Marketing today to learn how your business can get started with the latest innovative solutions that will increase your bank’s ability to engage each customer with a more personalized experience.