4 technology trends that will impact the future of banking
Tech innovations that will likely drive the future of the banking industry.
In the past few years, the banking industry has seen some impacting innovations. As technology improves, more innovations and trends will emerge and continue to drive the future of the business world, especially in banking. Here are four emerging trends in the banking sector that will likely drive the future:
Fintech Will Continue to Impact
Fintech has become one of the most impactful banking trends in recent years and will likely continue to do so. Fintech’s ambitious focus to improve customer experience has set a new standard for the banking industry; and it continues to grow. In 2014, global investments in fintech tripled to more than $12 billion, meaning that fintech will likely continue to be an impact. Bottom line: there is a demand for innovations in the banking services industry and fintech has the potential to fulfill that need.
Blockchain is the leading headline for digital banking trends. In 2015, 13 blockchain & bitcoin companies obtained more than $365 million in funding. Last year, there was a tremendous demand for cryptocurrencies, reaching over $300 billion in total value. Analysts believe that banks may potentially treat cryptocurrencies and other digital assets similar to traditional fiat currencies, meaning the world may begin to see new banking technologies innovations arise. For example, mining for bitcoins and other cryptocurrencies demand a large volume of electricity, more than the amount 159 counties use annually. This could mean that green technology may become a new innovation in the banking sector as long as the demand for cryptocurrencies continues to grow.
Technology and banking are two peas of a pod, as one develops, the other advances with it. In the last two decades, technological developments have driven astounding efficient innovations in the banking industry, specifically in mobile technology. The digital wallet has evolved tremendously in recent years, being one of the most impactful recent trends in banking. Studies foresee that the global mobile payment market’s total revenue is projected to grow to over a trillion dollars, suggesting that digital banking will only grow. Today, studies show that millennials are the key adopters for mobile payments, meaning that the next generation of consumers will likely help solidify digital wallet technology’s place in the financial services industry.
Banking’s Transitioning to Become More Data Driven
Like many other service industries, it’s very important to understand how consumers behave. Data will likely be one of the biggest future banking trends. As consumers become more connected through the internet and consume content so quickly, they’re becoming less loyal to brands and harder to satisfy. According to an EMC study, there will be 20 times more useable data than today by 2020, meaning financial institutions will only gain more opportunity to fully understand their consumers. With financial institutions gaining more understanding for their consumers, technology in the banking sector will continue to grow as they meet the needs of the consumer.
It’s important to understand the future trends in banking technology as the industry is constantly shaped by it. Be sure to keep a look out for these emerging trends in banking as they continue to impact the industry.