Financial technology, often shortened to fintech, has been making great strides in improving financial industries. Examples of markets that have improved due to fintech include the mortgage lending and insurance industries. Another industry that will begin to implement these revolutionary technologies is the banking industry. The Covid-19 pandemic has affected every facet of human life, including how our banks work. Due to the strict guidelines associated with the pandemic, banks have transitioned to a more digital platform to better serve their customers and fintech has been a huge help during this transition. Even though these technologies gained more attention in the public eye during 2020 because of the pandemic, they were being implemented before it started, and they will continue to be implemented in the future. The benefits of fintech in the banking industry are undeniable, so let us take a look at two trends in banking technology that we will see in 2021 and the benefits they will provide for banks and their customers.
Trend 1: Advancement in the use of Artificial Intelligence (AI) and Machine Learning
Artificial intelligence has been making big waves in many financial industries. It is a huge part of the trend of digitalization. AI and its subset, machine learning, are very important because they can help with the automation of many processes. In my opinion, AI is most effective in improving the customer service aspects of banking. With this technology banks can now offer a personalized, around the clock, and completely digital customer experience. Unlike humans, AI makes few mistakes, doesn’t need breaks, and can be worked with a customer’s leisure. Along with dramatically reducing costs, this technology is almost nothing but benefits
Trend 2: Advancement in the use of Cloud Computing
If I know anything about banks, I know that they do their best to make as much money as possible. Cloud computing is a technology that is helping do wonders for banks in this aspect. It makes information access and sharing between banks and their customers much cheaper for both parties, dramatically reducing costs. It also creates a platform where information will be transparent between the parties reducing conflict between customers and banks. It is also very beneficial in terms of information security. It lowers the risks associated with traditional data management and this is exactly what banks desire.
Written by Kourtney Manley, Business Analyst at OnlineApplication