Top 5 Technologies Redefining the Banking Sector In 2021

It has already been more than ten months since COVID 19 shook the world. Many things have changed during this period.

13:13 25 January 2021

And one thing is quite evident that life has never been the same after COVID 19.

 

With the ongoing restricting, social distancing, digital ways have become a new norm for everything. People who have never ordered food online have become regular customers of some home delivery-based restaurants. CEO and manager who have never favoured online meetings are now feeling comfortable holding every meeting Zoom.

 

This sudden shift to digital media platforms for everything has caused a ripple effect in the industries, including the banking sectors and financial sectors. This makes the customers see online interaction with the bank's representatives.

 

Furthermore, payment companies like PayPal and Square have taken it a step further by allowing their customers to send and receive Cryptocurrencies on their platforms.

 

How Are Technologies Redefining the Banking Sectors In 2021?

 

With the ongoing pandemic, people are more comfortable with online and mobile banking. This increase in demand has made the banks shift their focus on digital engagements with their customers.

 

While numerous changes are happening in the banking sectors right now, we feel that the following technologies are playing the most important role in redefining the current banking sectors.

 

1. Internet Banking Services

 

In this era, people are more comfortable with using their smartphones and making bank translation. This is the reason why banking sectors are prioritizing internet banking facilities.

 

Mobile banking apps drive personalization’s and help the user and account holders make any payment and transaction from anywhere in the world. And the best part is that the account is secured with biometric authentication and two-factor authentications.

 

2. Enhanced Risk Identifications

 

Financial data help the banks to categorize their customers into the followings:

 

• High Risks.
  
  
• Low risk.
  
  
• Potential Risk.

 

The above-mentioned following security setup is used to detect any fraudulent activity. The banks are using AI technology that used the Machine learning technology to self-improve itself by the data it is being fed.

 

Deep learning helps the banks to combine data from multiple sources to identify the nature of transactions.

 

3. Secured Transactions with Blockchain

 

Security is paramount for financial institutions. Whether the financial institution is running a payment mobile app, web portals, or any other third party for making payments, it is important for them to have a high-security system.

 

To make the network more secure, people are looking at Blockchain technology. Blockchain technology uses the public ledger principle and stores it in every data. Hence, it makes it impossible to reverse any entered data.

 

Banking sectors are looking at its potential as it has already been performing quite well in the trade market. However, there are certain risks associated with Blockchain. To know more visit crypto engine.

 

4. Use of Big Data In decision making

 

With the mountain of data collected by the bank every day, it is impossible for a person to extract the data and sort it out in a way that makes sense. But thanks to Big Data technology, banking sectors are now able to extract qualitative insight from the collected data.

 

Financial institutions are using Big data to make real-time business decisions after seeing and understanding the customers' and users' spending habits. Whereas customer data helps the banks optimize the marketing, highlight fraudulent activity, assess the risk associated with the transactions, and report back the banks' information.

 

5. Process Automation

 

Process automation has become the next big thing in the industry. Today everything we see is related to automation technology in one way or another. Across all the financial institutions, automation technology helps people make fewer errors and enhance ten customers' experience.

 

Robotic Process Automation (RPA) has started making its place in the banking sector. RPA is the software’s backed with AI and ML technology and is responsible for completing repetitive work.

 

Take Away

 

Banking sectors are now focusing more on Artificial intelligent technology and Machine Learning. They are experimenting with integrating these two technologies in the following fields:

 

• Back office functions.
  
  
• Trade Finance automation.
  
  
• Smart Contracts.
  
  
• KYC processes.
  
  
• Foreign payments

 

As more banking services are put online, we can expect banking to become more convenient and easier.