The Future of Financial Empower(mint)
November 6, 2023 | 4 min read
The banking industry has undergone an incredible shift in the last 10 to 15 years. From the first mobile payment to Starbucks made in 2011 to the development of online banking options, the financial industry is changing rapidly. In 2013, 80 percent of consumer spending in the country was already being done in a cashless form. Now, we’re moving heavily into even more advanced technology.
While much of the future is customer focused, this technology is turning inward as well. Banks are utilizing tools ranging from virtual reality to artificial intelligence to comprehensively change the way they operate. And, what does this bring with it? According to PWC, the change is incredible including:
The future of banking is technology based, with a focus on moving towards interactive, connected solutions. Here is a look at some of the most innovative solutions we are seeing now, on the cutting edge of application. The innovators in the industry are focused on these areas.
As of January of 2018, 39 million Americans own and use a smart speaker device. This is 128% growth in the industry in just one year, according to research from NPR and Edison Research as reported by Techcrunch. Voice assistants – think Amazon’s Echo and Google Home – are providing individuals with a simplistic way to communicate. The banking industry is developing new voice commands to allow these devices to securely access banking information and answer customer questions with nothing more than a vocally spoken command.
Perhaps one of the most important components from an inside view of the industry is the implementation of chatbots. This type of artificial intelligence is rolling out across the industry. Latest versions can do far more, creating very human-like responses to the questions customers have. Chatbots can provide fast, immediate access to information. They also reduce labor costs within the financial institution by automating many of the tasks bankers spend time doing. This also improves customer service and enhances brand reputation.
5G technology is on its way. Pew Research reports some data here that’s important to consider:
Smartphones will play a key role in banking, facilitating any service done in a traditional branch office. This will, in some ways, limit the overall need for face-to-face interactions. However, smartphone mobile apps and software will also provide insight to bankers about how people live, where they shop, and the types of services they need.
Technology will continue to expand its reach into big data. Consumer data will be more readily available – but also usable – to provide banks with more insight into the services and financial needs of the customer. At the same time, it will streamline regulation compliance requirements. Imagine not having to worry about compliance within the day to day operations of the business. With data access, enhanced security will also become more of a priority to lenders. We expect to see more movement towards highly secure solutions.
Video customer service calls will replace traditional customer service calls. Virtual reality environments could play a role here, too. The ultimate goal will be to provide customers with more ability to interact with the bank, creating a personal relationship. This will help differentiate one bank from the next in the coming years.
Artificial intelligence, virtual reality, and smartphone advancements will also apply to the business banking industry. Imagine a solution allowing business owners to track employee movement and spending over the course of the day using a GPS-oriented device. It could provide payment capabilities with location awareness built into it.
These are just a few of the innovative banking tools and resources we are seeing across the industry. The future of banking is very much focused on technology, innovation, security, and AI.
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