Technology impact on Banking sectors

The banking sector has experienced a tremendous technological revolution that has paved the way for creating newer, better opportunities for its customers. The impact of technology on the banking industry is manifold and can be witnessed with the speed at which banks operate in the country today. Gone are the days of standing in long queues to open an account, receive a physical statement of account, or wait days for loan approval. Each of these processes and more have improved with accuracy and precision, thanks to the positive impact of technology!

Impacts of new age technology

There was a time when huge databases existed in silos, and churning out meaningful data from the same consumed endless time and energy. New age technologies such as Artificial Intelligence (AI) and Machine Learning (ML) have radically shifted the way banking works today. Thanks to AI, it is possible to conduct real-time data analysis from a large volume of data sets and provide customised solutions to banking customers.

With powerful AI tools, banks can make informed decisions faster by using predictive analysis, which is at the core of AI and ML. As soon as a potential customer searches for something online, the AI tools pick it up and serve related content that leads to quick sales. This improves customer service tremendously as tailor-made solutions are provided to the customer without as much human intervention.

Mobile banking, for example, has already found deep roots amongst millennials. An Insider Intelligence’s Mobile Banking Competitive Edge study indicated that a staggering 97% of millennials use mobile banking! Right from transferring funds, checking their transactions online, downloading their account statements or even applying for a loan, everything can be done through a click of fingers on their mobile phones. This has also eliminated the need for physical branches, enabling banks to operate in a lean manner and cut unnecessary costs.

The usage of credit cards, debit cards, mobile banking apps, mobile wallets, third-party payment apps, etc., have all shot up considerably, indicating an essential shift in the mindset of customer preferences. Banks have streamlined their processes and broken the barriers between the different entities involved, such as branches, ATMs, and online banking, to create a seamless flow for their customers.

The changing customer profile inclines towards bringing both physical and digital worlds closer, and this is impacting the finance and banking sector favourably. Banks heed this need for digitalisation to retain their customers in the long run.