Essay Example on Digitalization is boosting the banking Industry









The banking industry is facing continuous changes nowadays At a time when financial industry analysts are seriously debating if Amazon will get into banking the banking market is in a state of flux when it comes to technology The bank industry hasn't got stuck when it comes to new technologies but every day the evolution is quicker and heavier what evolves into a continuous out of date technologies Mobile banking is nothing new but it is now a table stakes experience especially for younger bank customers meaning it is a must have for all banks According to industry experts and analysts if a bank does not have a solid mobile app they are an also ran Chris George senior vice president of client strategy at NYMBUS a core banking modernization company states that The big decision makers are really leaning on the idea of Mobile technology is taking over and there is a digital first movement that is taking hold in the marketplace There are five key banking technology trends that the industry will start facing in 2018 1 Banks Will Enhance Services with External APIs Banks have made use of application programming interfaces for years but APIs will increasingly be used to enable new services As The Financial Brand notes APIs provide the gateway for innovative contextual solutions that would be difficult to offer without open banking 

By the end of 2018 50 percent of global Tier 1 and Tier 2 banks will offer at least five external APIs Banks are increasingly partnering with financial technology companies via open APIs Part of that will be driven by regulatory requirements 2 Mobile Banking Will Become More Frictionless Mobile banking is no longer novel but will become easier to use and provide more functionality for customers Mobile banking will continue to accelerate past standard banking in customer preference as their digital user and customer experiences become more enriched and data informed This will include consumer to business frictionless digital banking consumer to consumer one click payments new cryptocurrency opportunities password free biometrics locational services and offers and conversational interfaces Come up with apps and an online presence that competes with the ease of use that those other players have come up with It s no longer acceptable to have a mediocre app Chris George senior vice president of client strategy at NYMBUS 3 Artificial Intelligence Will Improve the Customer Experience Artificial intelligence will help banks automate processes and improve the customer experience There are organizations beginning to greatly simplify processes through intelligent automation which in turn helps to expose enterprise data that has been traditionally trapped in complex core systems There will always be a need for a human and that there will be not totally AI driven banking systems coming online anytime soon However AI can help automate repetitive processes and potentially improve customer service via chatbots Robots are 50 to 90 percent less costly than offshore or onshore employees and that banks will increasingly invest in AI to become more efficient while still maintaining strong customer service 

There is a growing demand to maintain lean operations while delivering exceptional customer experience at lower costs Over the next two or three years banks will add AI capabilities to their apps 4 Security Will Become More Robust via Biometrics Security is always a concern for banks and will continue to be in 2018 Banks will increasingly seek ways to add new layers of security to their services IDC predicts that in 2018 spending will rise by 20 percent on next generation security based authentication methods as banks strive to build digital trust with their customers Customers have become more comfortable authenticating payments on their smartphones via thumbprints Banks will extend that to facial recognition and voice prints As customers become overwhelmed with trying to remember numerous passwords biometric authentication methods will help simplify security processes and provide more secure methods of authentication Anything that can further prove I am who I say I am and is as easy as using voice thumbprints or a facial scan banks will start embracing that Marc DeCastro Research Director for IDC Financial Insights 5 IoT Will Be Deployed on Small Scale Banks have been dabbling with the Internet of Things and will continue to do so in 2018 There will be more proof of concept deployments next year as banks pick a few high traffic branch locations to test IoT technologies Banks need to see how customers will react to sensors in branches

 For example a customer could walk into a branch and a bank could use beacons or sensors to authenticate a customer via their biometrics That could then send a signal to an ATM to pre stage a cash withdrawal based on the customer's preferences As soon as the customer inputs their PIN number the money would be dispensed Such a frictionless transaction could give customers a wow factor and make them think highly of IoT ATM manufacturers are embedding these capabilities The banking industry is facing digitalization are you ready to face it As the banking industry every market needs to evolve to digitalization Zigurat has created a Master s program to cover this market demand and offer the required training to professionals and companies in order to boost business optimization through digitalization The Digital Business Global Master has been designed for all those professionals who want to foster their technological and decision making skills and add a differential value to increase their competitiveness in the global market

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