The era of digital transformation is changing the way many industries operate. Among them, technological advancements in the banking industry are continuously affecting financial services around the world. From retail operations, mobile banking to neobank companies, technology contributes to almost every aspect of the banking industry. It helps financial services meet the growing digital banking experience needs of customers. Through this article, let’s find out with Tech Town the future technology trends of the banking industry.
Retail banking technology trends
Technology is having a positive impact on helping retail banks improve operational efficiency. According to Insider Intelligence, 39% of retail banking executives say technology is a key factor in helping retail banks reduce costs, compared with 24% who say it only improves the customer experience.
Retail banks are also planning to develop banking as a service (BaaS) to stay competitive. In the United Kingdom, Neobank Starling used to exclusively provide business-to-consumer (B2C) retail banking services, but after launching BaaS, they were able to diversify products and services. revenue stream while remaining relevant in the new banking space.
In addition, mobile banking is also one of the important features that financial institutions need to have in order to stay competitive, especially in the era of the generation Y, the knowledgeable Gen Z. on digital. Also according to Insider Intelligence’s 4th annual survey, 45% of users say mobile is the top factor in determining their choice of financial institution.
Mobile Banking Technology Trends
Mobile banking is becoming a popular method of transaction and financial tracking of consumers, which is also a special factor that banking leaders need to pay attention to. Nearly 80% of users say mobile devices are the main way for them to access their bank accounts.
A successful mobile banking application includes financial management features, helping users cut spending and increase savings.
The top concern of mobile banking users is security. The fear of data hacking leads to an increasing demand for services to keep data safe. Security features such as credit and debit card issuance, travel notification scheduling, filing and review of card transaction disputes, etc. will help banks increase their competitiveness in the technology trend. 4.0 .
Online banking including mobile banking should focus on the overall banking experience through digital channels such as mobile apps, desktop apps, live chat, etc.
Online banking technology trends
The popularity of mobile banking is overtaking online banking, the growth rate of the number of customers using online banking around the world is slowing down. According to Insider Intelligence, mobile banking is growing at five times the rate of online banking, and half of all online customers are also mobile banking users.
Despite the increasing popularity of mobile banking, some banks are still lacking demand for mobile tasks such as bill payment, redemption, driving users to online banking. However, this is not enough to popularize online banking as millennials and millennials are still moving towards the mobile market.
Digital-only banks or so-called new age banks are redefining the future of the global banking industry. Despite a slow start in the US due to dense regulatory hurdles, recent regulatory easing suggests that US neobanks will succeed.
Neobank banking technology trend
Smart mobile banking applications will be a driving factor in the development of neobanks in the US, this banking solution has been given more importance since the Covid-19 pandemic and social distancing emerged. presently. Financial institutions, banks and technology companies can all benefit from properly understanding how leading new banks are raising customer expectations and confidence to scale their scale. surname.
Chime is the largest US neobank based in San Francisco, they attracted more than 7.4 million users in 2019 and are expected to grow to 19.8 million by 2024. This bank will increase awareness of neobanks, and weaken traditional banks.
Banking technology trends
Technological trends in the banking industry are driven by consumers. Especially Gen Z – people who value technology and focus on digital experiences. A common trend in banking technology is to use application programming interfaces (APIs) to make proprietary data available to anyone with the user’s permission.
Artificial Intelligence (AI) technology is being widely applied in banks to smooth the process of customer identification and authentication, and support customers directly as an employee through chatbots and assistants. voice.
The API can be used to allow a mobile banking application to obtain customer account information. Fintech businesses have adopted API technology to drive success, which also encourages competitors to develop their own APIs.
Also according to an Insider Intelligence report, 48% of bank executives believe that new technologies like blockchain and AI will have a big impact on technology trends 2025 or beyond in the banking industry. Banks are researching to apply blockchain technology to streamline processes and cut costs.
Hope the information that Tech Town brings will be useful to you.
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