Digital banking strategies and automation of banks are quickly evolving to keep up with the changing digital times.
The banking industry is seeing an explosion of digital banking trends and banking technology. How will innovation and automation lead the digital transformation in banking?
For centuries, the banking industry has relied on bank tellers and financial officers to count, organize, and distribute funds. With the growing use of automation and innovation, digital banking has become the most efficient way to handle money in modern times. Many banks have experimented with automation processes and achieve excellent results in a matter of months. Financial institutions that connect technology to intelligence are more likely to gain and sustain customer growth than banks who don’t.
What is Digital Transformation?
Digital transformation is the intelligent transformation of a bank’s activities, processes, competencies, and models to leverage opportunities with digital technologies and their impact across society. Basically, this means that with new banking technology, the banking industry has determined the best way to do business with customers is to ensure quality of processes and ease of systems. While technology makes most things much easier, not everything in the banking industry currently fits the digital transformation window.
How Automation is Leading Digital Transformation in Banking
Machine learning, robotic automation, and automated predictive analytics are just a few of the ways the banking industry is making a digital transformation. Making this digital transformation is tricky with the non-digital legacy that has been at the forefront of the banking industry for centuries. Automating consumer interactions with ATM machines and online banking has been just some of the simplest ways banks have kept up with changing technology. Newer trends such as cloud software and using artificial intelligence to chat with customers are being implemented by most in the banking industry.
Banking Technology Trends
The year of 2018 may see some newer technology trends being used by the banking industry. Banks are using machine learning to understand their customers on a more personal level. Many are seeking new business models, while some are even collaborating with financial technology firms to upgrade their digital transformation strategy. Banks who fail to update their transformation strategies risk allowing other banks who more closely meet customer demands to join the market and steal customers.
How Innovation is Leading Digital Transformation in Banking
Not only are banks looking to automate online platforms to help customers more efficiently, cutting costs involved in banking is taking over. Many new banks entering the market operate solely online, allowing customers to receive answers faster, while saving them money. Not only are these new banks more efficient, they also offer more security to customers, which is important when handling people’s hard-earned cash.
Digital transformation in banking is the obvious path over the next several decades. While it may sound like bad news for bank tellers, brokers, and financial institutions, many banks are beginning to realize if they aren’t serious about updating their digital transformation strategy, they will inevitably be left behind and possibly cut out as newer, more innovative banks enter the marketplace. Banking customers are demanding more when it comes to response rate, efficiency, satisfaction, and security, and it can be hard for a customer to trust an outdated bank with their money. To be trusted in the banking industry, financial institutions must make the effort to have up-to-date technologies and a sound banking strategy in place.