Technological advances have impacted practically every aspect of modern life, and the banking industry is no exception.
Far-ranging changes to the banking paradigm can be traced to the expansion of information technology. These changes have created a banking industry that now offers a wealth of new services, products and banking opportunities to consumers across the globe.
In addition, the delivery of banking services has become much more streamlined and efficient. This has benefited banks and consumers alike.
Technologically-savvy millennial consumers may be the single most important drivers of innovation and change within the banking industry – and they are the demographical group most likely to embrace advances in the banking model.
The Most Far-Reaching Change in the Banking Model
Electronic banking has been one of the most radical changes in the banking industry, and its effects have been wide-ranging. Electronic banking not only reduces costs to banks, it also generates revenue via a host of different channels.
The ever-increasing use of mobile devices, the Cloud and Analytics allow banks to offer products and services to a growing pool of customers.
The convenience of electronic banking has created a wider community of bank users. People can now bank at any time, from almost anywhere. In addition, the networks of the World Wide Web mean that the global transfer of funds is now considerably lower in cost. Around the world, people can access money and financial services round-the-clock.
There was a time when the banking industry was a brick and mortar institution only — and oftentimes kept highly inconvenient hours. Furthermore, banking was not accessible to all segments of society. With E-banking, today’s banking model is getting to be more egalitarian, and the banking industry never sleeps.
Benefits of E-Banking
The major benefits of E-banking include:
– Internet banking: the impact of Internet banking has been transformational. Now anyone can bank from home, at work, or even on the go. Online banking gives users direct access to account details.
– The availability of ATMs: automated teller machines enable easy access to cash at any hour of the day or night, year-round.
– Bank users no longer have to stand in long lines at physical banks to undertake banking services.
– The availability and use of debit cards offer convenience and safety: people can carry less cash.
– Tele-banking gives users the option of paying their bills by telephone.
Electronic banking aside, the banking industry looks set to undergo yet another transformation: the integration of AI technology.
The Impact of Artificial Intelligence Technology in the Banking Industry?
The use of Artificial Intelligence will lead to further automation and innovation in the banking industry: AI is currently being used as virtual assistants by a number of banks. For instance, Chatbots heighten customer interface.
Artificial Intelligence will be used more widely to evaluate vast data. This would be useful in the identification and eradication of fraudulent activities.
Ultimately, the banking industry’s increasing use of technology will improve customer security, reduce fraud and enable banks to offer more customer-specific products and services based on analytics and each person’s individual requirements. Doing so can only engender greater customer relationships and satisfaction.