2. Financial Services Firms Will Grow Their Use of Data Analytics
The financial services industry has been a leader in the adoption of advanced data analytics, having long used it to help make lending decisions. But as technology has expanded with the Internet of Things and various digital devices, there’s been more information available for financial services firms to track. Now, information from every swipe of a credit or debit card can be collected, allowing businesses to easily detect irregularities or fraud and better assess risks.
This has been helping banks in a number of ways. IBM found that 71 percent of banks and finance organizations that used analytics said that it gave them a competitive advantage. As they gain insights into their customers’ behaviors, banks can use them to enhance the branch experience as well. Organizations will find more and more ways to use this information to tailor products and services to their customers.
3. Blockchain Will Be a Key Security Solution
Blockchain has been on the financial industry’s radar for a while, but now it’s set to explode. No longer just for cryptocurrency, the technology is ripe for use as a security solution, with multiple points of verification built in to every transaction. That multipoint verification secures the information being transmitted and creates detailed records every step of the way. This can be comforting for those looking to move large amounts of money.
Blockchain also saves money. Because the technology makes peer-to-peer transfers in a decentralized network, there’s no intermediary to charge fees. From monetary transactions to transferring contracts, financial services firms will be utilizing blockchain technology more as popularity grows.
4. More Bank Branches Will Undergo Digital Transformations
As mobile banking has grown in popularity, banks are taking new steps to enhance the branch experience. Branches may not be able to compete with the convenience of a customer having ready access to all of their accounts in the palm of their hand, but they can add value to the act of physically stepping inside the branch.
Digital signage will bring a more interactive experience to branch visitors. Mobile devices to help with certain tasks will help move customers through processes quickly and efficiently. Employees can roam the branch freely with iPad devices hand, helping people wherever they are. As customers move more and more toward online banking, branches will harness technology to build a better in-person experience.
5. Automation Will Take Over More Financial Services
There are many industries clamoring to make the best use of automation. Automating tasks can get things done faster, more cheaply and more accurately, increasing efficiency. Financial services firms are also trying to harness this power, particularly through bots. Many customers are familiar with interacting with bots to answer their questions, but banks and other financial firms can also use them to automate some internal tasks, like responding to IT tickets or in accounts receivable.
The Australia and New Zealand Banking Group deployed robotic process automation and saw a 30 percent cost savings in some functions. The group automated more than 40 different functions, freeing up staff to take on more complex tasks. As technologies like RPA evolve to become even more efficient, financial services firms will find more ways to capitalize.