How technology has transformed the banking industry
One of the oldest businesses in the world, the banking industry has been constantly evolving. However, in the last few years, technology has influenced the sector significantly, leading to changes that were hard to imagine just a decade ago.
Banks used to be regarded as places with long queues and huge amounts of paperwork, but thanks to technological advancements, things are a lot different today.
Here are 5 ways in which technology has transformed the banking sector:
1. Consumer analytics is reshaping the banking industry
In order for banking and financial service providers to be successful in today’s business landscape, it is absolutely necessary to understand the expectations of their customers.
By leveraging consumer banking analytics solutions, industry players are able to analyze customer behavior and develop suitable offerings to meet their needs. Consumer analytics can help banking services by offering in-depth customer insights, enhancing marketing efforts, and assist in managing customer experience and managing risks in the banking and financial sector.
2. Done in one tap
In 2008, the first contactless cards were issued by Barclaycard, and today, according to Mercator, Visa has 93 million contactless cards in the United States alone. By 2011, contactless had merged with mobile technology, and the first mobile apps that allowed people to pay by tapping their smartphones against a terminal emerged.
One of the most popular is Google Wallet which allows users to store credit, debit, and loyalty gift cards on their smartphones. Cities all over the world are also working to integrate touchless payments into their transit systems. Hong Kong, Santo Domingo, Bratislava, Brussels, and Bucharest are just some of the cities that have introduced contactless payment, and in the U.S., Monterey Salinas Transit is expected to be the first transit agency in California to do so.
3. Customer service still matters
Just because banking is increasingly becoming contactless, it doesn’t mean that customer service is no longer needed. Millennials expect top-notch services regardless of the industry and they are less likely to remain loyal to one particular bank compared to their parents. Nowadays, customers prefer doing their own research rather than choosing secondary products at the same bank by default.
And while mobile and online banking might mean that generic customer services are not necessary, customers now expect a more personalized experience when they need to connect with their bank by chat, phone, or in person, no matter how rarely this happens.
4. Cybersecurity and data protection
Keeping financial information safe is one of the biggest challenges for banks, but it’s also a responsibility for customers. Public computers, easy passwords, and phishing scams are just some of the most common ways you can lose your money.
According to statistics, eight out of ten US citizens fear that businesses aren’t able to secure their financial information and with a good reason: the US suffered more than 1,400 cyberattacks over the last year, leading to 164 million successful data breaches. Over 70% of all data breaches are financially motivated and the cost of cyberattacks in the banking industry reached over $18 million annually per company.
Nowadays, data can be protected much more efficiently. Modern technology provides higher security of transactions and data safety, so the occasions on which the data is misused are becoming less frequent.
5. No more queuing
Is queuing the first thing that comes to mind when someone mentions banks? If you’re over 30, you have probably spent hours in bank queues to pay in a cheque or withdraw money. Well, the good news is queues are a thing of the past. Now, customers can do everything online, from complicated issues like applying for a mortgage to simple transactions.
In fact, some banks are now only available virtually, redefining banking customer experience by connecting with a new generation of mobile-first consumers. Banks like Digibank, Chime, First Direct, and Loot don’t have any physical branches (although they are partnered with existing institutions to ensure that the funds are completely safe).
Final thoughts
These days, the banking industry is rapidly changing and adapting in order to meet the needs of customers in every part of the world. Although technology continues to evolve and mobile and online banking are fast becoming prevailing, positive customer experience is still an important element in the services physical branches provide.
