The biggest revolution came in banks is digitization and with adoption of technology at right time. Now, banking process is faster than before and more reliable. Maintenance and retrieval of documents and records have become much faster and easier. Computerized banking also improves the core banking system. Customer is more hyper and expects services 24×7, and on mobile, i.e., everywhere.
In an increasingly saturated banking and financial sector, it has become imperative for banks and other financial institutions to continually evolve, remain competitive, and provide exceptional customer experience to users. CIOs should experiment over the next year with these technologies to innovate.
2020 is when the world will see transformational changes in how technology impacts our lives. Let us look at emerging technology trends for 2020.
Blockchain to practical use. Blockchain intends to transform everything from payment transactions to how money is raised in the private market. The traditional banking industry has to embrace this technology or be replaced by it. The most popular domain of blockchain use is the banking sector because security is of utmost importance for the financial domain.
Robotic process automation. Banks and financial institutions today are under tremendous pressure to optimize costs, and boost productivity. The other challenges that the banking sector is grappling with include a scarcity of skilled resources, need to increase efficiency in processes, and a sharp increase in personnel costs, which altogether has given way to the adoption of robotic process automation (RPA).
Artificial intelligence. AI is now part of everyday life, driven by the emergence of a device ecosystem, including Alexa, Siri, and Google Assistant. In 2020, emotion recognition and computer vision will scale, and AI will have a breakout moment in banking and branch experience. AI will be helpful to bring engaged business models for customers. AI is projected to reduce bank operating costs by 22 percent around 2030. That could mean savings to the tune of USD 1 trillion ahead.
Internet of Things. IoT is hot but there are not as many mainstream applications today as some predicted. We anticipate that with 5G, the number of connected devices and mainstream IoT applications will reach scale. With rise of IoT, banking services will be plugged into IoT devices.
Cloud and edge-computing processing power. 2020 will see the need for higher performance from edge-computing hardware since better sensors and larger AI models now enable a host of new applications. There is a growing need to infer more data and then make decisions without sending data to the cloud. We will see banks moving non-banking applications on the cloud.
New era of the internet – 5G technology. 5G competition between the US and China is entering the main stage in 2020. There will be a new competition about who can propel 5G faster into mass consumer use. 5G will drive customer expectation to the next level. Smart cities, self-driving cars, entertainment, and digital adoption will increase with 5G adoption.
Banking should evolve for disruptive revolution
Technology-based fintech and bigtech companies are influencing market changes by enabling traditional institutions to embrace emergent technologies. These different markets are moving at different speeds for several reasons – legacy system complexities, cost, regulation, and culture, to name a few.
With the combination of technology, API banking, automation, security, people, and regulation, there might never be a revolution in the banking industry. If the banks wish to evolve, they need to embrace new technologies that cater to consumers’ ever-changing needs. innovation and collaboration will be the key to adopt emerging technologies.