The Future of Banking – Newer Solutions, Better Opportunities

The exponential growth of technological advancement has penetrated every industry is the world and banking is no exception! A decade ago, no one imagined that the conventional routines of visiting a bank could be tucked into a smart phone in the form of a mobile application.

While superficially this may seem like the epitomized form of banking convenience empowered by technology, who knows, it may just be the beginning of yet another revolution?

Ever wondered what banking would be to your grand children. Read on to grab some interesting insights into the future world of banking.

More Apps; Better Apps

Undisputedly, mobile apps have become a strong vein of customer service in the banking sector. The trend is here to stay and in fact intensify over the years.

In the following years, banks will focus on important parameters of mobile app development which include deep-seated simplification of the app, a more personalized touch and relevance, “anytime, anywhere” communication (video and voice chats), outstanding design discipline and a whole of newer and faster features.

The Mobile-Only bank system launched by DBS, Singapore in India is a reinforcement of the power of mobile app.

Banking with style

Can you believe of banking through watches?

Yes. Definitely “wearables are going to be part of future of banking”. Since the introduction of Smart watches, Google glass and Oculus Rift, the customer interaction will be more effective and convenient. The banks will be developing the application which can be installed on wearables by which the customer can access their bank accounts.

Customer is the King

Technology will transfer the power of the marketplace into the hands of the customers thus pushing banks to change their conventional product-oriented setup into a customer-oriented model.

Banks will fight the changing regulations and yet come up solutions that can make them customer friendly.

Some of the key focus points would be,

• Communication – “anywhere anytime chats and video chats”.
• Personalization – “only relevant information is given to the customers”.
• Organizational agility – “breakdowns the barrier between the customers and banks”.
• Continuous innovation and technology – “to retain the customers”.

Digital wallet will be in vogue

Since the usage of online purchase and transactions are increased, digital wallets will be the biggest medium for banking in the future. The majorly used digital wallet apps are,

• Apple pay
• Android pay
• Samsung pay
• PayPal

As these services are from technology giants of the world, they cannot really disrupt the banking sector but will act as a complementary service to enable better customer satisfaction. However, some banks like Barclays have come up with their own wallet (Pingit) too. Irrespective of the ownership of the digital wallets, their praise will be sung in glory.

Visits to ATMs will get better

ATM’s are not going to go away but will sporting a classier and more advanced technology to satisfy the customers. Bio metric identification and mobile logins will replace the use of credit and debit cards.

In order to make more customer interaction, Video teller machines will be also placed in ATM centers. It will be helpful for the customers to have more interaction with employee of the bank.

Banking Models

In future, the model of banking is divided into four categories. They are,

• Better bank
• New bank
• Distributed bank
• Disintermediated bank

Better bank:

Better Bank will be based on bank legacy and the digital banking interface.

New bank:

To start with, this type of bank will be fully digitalized. Digital bank will be emerging and the interaction with human to human will be reduced. Robots, video chats and access on online will be more predominant.

Distributed bank:

This type of bank is formed with the collaboration of Fintech providers and banking services. Since Fintech providers are more customer centric, banks are needed to have a partnership with them in order to withstand in the increasing competition.

Disintermediated bank:

This type of banks will be a combination of banking platforms, Fintech providers and also the social network banking interface. Social media will also begin existence in the banking industry. The banks will also make use of social media to communicate with their customers.

Needless to say…

Banking will be the “land of opportunity” in 2020 and CloudBankin in Chennai can pave to leverage these multiple avenues.

In this “survival of the fittest” world, banks will be competing with one another to create a competitive edge through the wise use of technology.

The smaller banks will turn to a digital bank and the bigger banks will have to collaborate with Fintech.

So don’t be overly surprised if your bank chooses to hire robots to greet your “once in a blue moon” visit at one of its branches.