The rapid pace of technology is changing every aspect of our lives, be it how to travel from point A to point B, how we keep in touch with our friends and family, how we shop, how we are entertained et al. Technology is turning out to be central to building modern businesses, as institutions harness the power of technology to customize the products and services they offer.

The impact of technology in Banking is at a different realm given the distinct variables at play in this domain; for instance, the need to protect people against borrowing money they can’t afford; to prevent them from making unsafe investments which they don’t completely understand; or to secure them and the financial framework against fraudulent transactions.

The one standout variable at play in banking is risk mitigation. Regulation is fundamental to ensuring good conduct, upholding the integrity of the financial system, and protecting it against threats. Technology has effectively helped in curtailing the risk for both banks and regulators.

The Critical balance

Banks are investing in technology and leveraging the same by acing new information sources and analytics. In turn, this is helping banks develop a profound understanding of clients’ needs and how to support them and unlock new saving, investment, and credit streams.

Within a few years, this will make banking even more frictionless for consumers. Instead of assessing and surveying each product category individually to find the ideal alternatives, this choice will be optimized in the background based on customer’s data profile and risk appetite.

The Trust Element

At the core, banking is based on trust. While clients need banking services frequently, they need to be assured that their money and information is safe. Hence it is vital that the automated programs do not encourage people to make investments that do not address their needs or helps take the right decisions for their money.

Moreover, it is imperative for the Banks to demonstrate that they are utilizing technology such as Artificial Intelligence (AI) and Big Data in a moral/ethical way. Banks need to focus on standardising work in artificial intelligence, how information is collected, presented, and explained to customers. Much greater coordination is required to truly take advantage of new technologies, which are by and large borderless. IN the process, they need to secure the trust of the regulators and investors as well.

The Positive side

Fortunately, technology has also opened doors to better approaches for keeping people and financial system safe. Technology is already capable of doing security checks quickly and precisely, helping spot criminal activities, red-flag fraudulent transactions etc. Such tools are probably going to turn out to be considerably more astute and even more widely utilized in the future.

Artificial intelligence is also helping to ensure that the Banks make the right product recommendations by conducting timely and thorough post-sale checks. With respect to data privacy, banks are investing heavily in technology to assist customers keep their personal information secure, including fingerprint and face recognition. As people’s digital identities become increasingly important, the role of banks could expand to include helping customers prove their identity in a safe manner online to other organisations.

These advances make it an exciting time to be in financial services. It is no surprise that new players are eager to enter the market. Since digital technology is transforming the banking industry, it takes substantially more than just this to succeed in banking. Technology has the potential to offer unprecedented speed and convenience in banking. The banks that thrive in the future will be those that match great tech with thoughtful risk management and, above all, excellent customer experience.

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