Technology and digital transformation have created opportunities for new players entering the banking space. The same happened to other industries and the global economy. Just as customers are turning to mobile devices over calls and the increased need for apps to promote usability, companies now experience many changes that should be considered and invested in.
While there is still time to fight competitors and take your place in the market, banks all across the world should protect their benefits, which are under attack by new changes. For that reason, they should also redesign their processes and business models to satisfy their customer’s needs and scale to meet future needs as well.
Although regular banks are still popular, FinTech and blockchain-based transactions are growing in popularity and are believed to soon overcome traditional banking. As a result, traditional banks should know what to prepare for and how to transform their processes to adjust to new realities and customers’ needs.
AI is in Charge of Personalised Banking
Days when a huge line in banks was the norm, are gone. The unexplored banking sphere of video banking has recently been explored with the advent of AI-powered technology. Artificial Intelligence is growing in popularity in various spheres. However, it just started to enter the banking sphere. As a result, modern banks provide remote banking systems that would offer an interactive consumer experience. The same happens with the disruption brought on by AI with chatbots that provide 24/7 support for clients and a high level of empathy.
Banks must offer personalised techniques to provide an outstanding user experience. For example, AI chatbots can easily identify where users are located to offer them nearby offices. They know users’ names and their issues to provide specific and accurate answers to their questions. AI can also help banks to deliver unique value to specific demographic groups. Data brought by AI allows financial companies to address the key points unique to each segment, like security concerns, virtual support for Gen Z, and cutting-edge technologies for Gen X.
Experts say that banks can increase their overall efficiency using cloud computing, allowing for growth and development. Unlimited access to a single source always allows for fresh ideas and higher productivity of the staff. For example, reduced operation costs allow companies to invest in SEO for banks to promote their services and improve their visibility.
Without any doubt, safety is the key issue for most businesses today. Customers are looking for businesses to take care of the safety of their clients, using the latest technologies and all measures to protect sensitive data. Although some industries can invest less in safety, banks are required to do everything to make their client money as protected as possible.
As a result, some banks have already applied blockchain ledger and cloud computing as part of their safety measures. This allows banks to reduce financial crime risks and protect their clients, boosting customers’ loyalty and trust.
Importance of Blockchain Technology
With the popularity of blockchain technology, lots of businesses have already applied this technology to boost their processes and improve safety. Blockchain provides many benefits for businesses, like increased safety, speed of transactions and decentralisation, which so many people are looking for today.
With the adoption of blockchain-based transactions, banks are required to consider this technology in their process. This decentralised ledger used for transactions is believed to allow banks and financial institutions to compile transactional data into a shared resource, preventing digital fraud and any attempts at manipulating the data.
Cloud Computing is Growing
Running apps online instead of running them locally on several devices has become an appealing option for most businesses today. Cloud computing has been adopted by over 90% of organisations all across the world within the last few years, where 31% of those companies spend over USD 1 million every month on cloud services.
Cloud computing services are growing in popularity among banks. That is because these solutions allow banks to keep a direct line of communication with their customers. Regardless of their location, cloud computing allows your staff to deal with a number of difficult issues with the help of cloud-based services.
Traditional storage ways are insufficient now. They are also hard to use, thanks to the retention of large amounts of data. Cloud computing does not have these issues. Since cloud computing services make operations highly effective, this allows banks to easily and quickly arrange and manage their services.
Web3’s Benefits for Personalised Banking
Decentralised finance systems and Web3 are best together. These two technologies are incredibly popular today, and their meaning for business is underestimated right now. Web3, being the future of the Internet, should be considered by companies all across the world since it is believed to appear soon. However, banks won’t benefit from these technologies since it is thought to allow people to manage their money without banks and through smartphones to access these new platforms.