Business Studies, asked by serinamary6523, 2 months ago

Write about recent trends in digital banking​

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Answered by mus1990patna
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Answer:

Today, we live in the digital era where technology is driving change in almost every industry, whether it is the use of smartphones, automation to improve operations, cloud computing to collaborate, data analysis to extract insights. Smart use of technology is becoming an integral part of the success in business. However, no industry is as driven by technology as banking is. A study by PwC says more than 81% of banking CEOs are considering the impact of digitization in the finance world. There are several financial organizations trying to keep up with the latest tech trends like chatbots, Artificial Intelligence (AI), Blockchain, etc.

With so many competitors vying for your customers, the only winning point is to keep track of the recent trends and start to implement them in the better way before your competitors bring about the change in the field. Get immense benefits and improve business results by keeping in mind the latest technologies.

Technology Trends That Will Disrupt the Banking & Financial Services

Chatbots

Customers today don’t have the patience to wait for long hours and get their queries resolved. Instead, they demand quick response and effective resolution of their issues. Chatbot has made this possible in banking organizations. Supported by AI technology, chatbots are used by many finance companies to reduce costs and meet ever-changing expectations. Now, users no longer depend on traditional methods of two-way communication like email, phone, etc. Report by Gartner states that more than 85% of customer service interactions will be handled by chatbots in 2020.

Chatbot helps in encouraging conversational banking by providing an exceptional experience that can be personalized to meet exceeding customers’ expectations. Brands like Bank of America, Capital One, etc. have been using bots for many years to resolve simple queries. However, today’s advanced bots could offer financial tips, detect fraudulent activities, and even assist customers during registration. They can help in making smart conversations with millions of customers, just at a fraction of the cost that would have taken by using human customer agents. This technology not only helps the banking world to provide centralized financial management but also improve the way customers connect with their banks. The right Chatbot Development company is all you need to get your own banking bot and replace human agents for better savings.

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Big Data

With the increasing amount of data generated every day by the banking sector, it is becoming difficult to extract actionable insights that can help in growing more opportunities. Big Data is the answer! This technology has undoubtedly put all the banking data i.e. debit/credit card transactions, ATM withdrawals, money transfer, etc. to make informed decisions and process it effectively to gain valuable information that is needed to stay competitive in the future.

Big Data helps in making banks learn about their customers in a better way enabling them to make real-time business decisions through analysis of customer’s purchase habits, sales management, etc. Other added benefits of big data are better marketing, product cross-selling, fraud detection, customer feedback analysis and many more. Additionally, it aids in identifying the latest market trends and streamlining internal processes to reduce risks.

Blockchain Integration

Blockchain is known for cryptocurrency like Bitcoin that helps in keeping track of transactions in a secure and verifiable way. Talking about security in banking institutions, blockchain will surely disrupt banks by improving security, saving money and improving customer experience. As blockchains are highly secure and easy to operate, it can be used for promoting transparency during payments & currency exchange in banking.

Blockchain acts as a decentralized database and helps in protecting customers’ personal and financial data by storing all the information about real-time payments & profile details on multiple blockchain servers. This resolves issues like fraud detection and cyber attack prevention. The need for third parties will be removed in the loans and credit system using blockchain making it more secure to borrow money and reduce interest rates.

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Artificial Intelligence (AI)

Banks have benefitted enormously by adopting newer technologies like AI resulting in lower costs and more revenue through multiple channels. A report from Business Insider Intelligence says the average estimated cost savings for banks using AI is $447 billion by 2023. Let’s find out banks are using AI! It is mainly used to streamline customer experiences with robots and chatbots. One common example is using AI to facilitate mobile banking enabling customers to get 24/7 access for any banking operations.

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Answered by MuditBhadada
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