“When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a fast caterpillar.”
The above quote by George Westerman clearly states, how technology in the past years has become an important part of a business’s success. If used correctly, technology is capable of transforming the whole working process and can provide new opportunities, growth, and methods to save money.
With rapid growth in the banking sector, it became necessary to incorporate the use of Fintech into its working process. Fintech refers to the process of using technology by different businesses to improve their financial and banking services.
Here are the top five technologies that have helped in transforming the banking sector:
Blockchain refers to the system that maintains records of transactions across different computers linked in the P2P network.
- Blockchain with its capability of keeping track of transactions in a verifiable and permanent way helps improve data security
- Blockchain software is cheap to operate, thus it saves money
- Offers high security, thereby increasing customer trust in the bank
- Secures loaning and borrowing process
- Eliminates manual storage of data, thus assuring an error-free work process
- Saves employees’ time and contributes to work efficiency
Artificial Intelligence (AI):
Artificial intelligence refers to the process of programming machines to think and act like humans. It allows machines to sense and learn human behavior, and make decisions or make suggestions based on its collected data.
Recently, the banking sector has increased the use of different banking software development with AI being amongst the most used software. Some ways in which AI has helped in developing the banking sector are:
- With AI, banks can provide 24×7 customer service making it easy for customers to conduct transactions or other banking operations at any time
- AI offers great cost-saving opportunities across banks and is expected to save around $447 billion by 2023 according to Business Insider.
- AI enhances security and helps in detecting fraud
- Helps in making decisions based on customers’ behavioral patterns, thus decreasing chances of fraud and enhancing risk management
Robotic Process Automation (RPA):
Robotic Process Automation refers to the process of programming software in a way that enables robots and virtual assistants to complete repetitive tasks without any human intervention.
RPA is amongst the top technologies that have gained immense popularity in the past few years by enhancing work efficiency in the banking sector. Some ways in which RPA has contributed to the growth of the banking sector are as follows:
- Robotic process automation software helps save labor and operational costs by completing intensive tasks without human intervention
- RPA operates with robots and virtual assistants, thus minimizing errors
- It contributes to the growth of a bank by providing the best user experience
- With RPA, a customer gets fast solutions, such as getting a quick revert on tier debit/credit card applications
- It improves work efficiency as it takes up small-scale queries of customers thereby saving customer care services time and effort
- It optimizes the mortgage process
Cloud computing is an important part of banking software development. It is the type of software that stores data and delivers computing services like networking, servers, and databases, among other services.
Some ways in which cloud computing has transformed the banking sector are:
- It saves cost as the customer only needs to pay for the services that are in use
- It helps in securing online payment, online transfer, and digital wallets by maintaining the data records
- Cloud computing offers 24×7 customer services, hence increasing customer satisfaction
According to the IDC Semiannual Big Data and Analytics Spending Guide, the banking sector is currently one of the top investors in big data and business analytics solutions. It is because of the hefty amount of data the banking sector produces daily.
More data means more security and this is where big data comes into play. Here are some ways in which big data has contributed to the banking sector’s growth:
- Storing and securing important data like credit card scores, transaction history, ATM withdrawals, and customers’ personal information
- Making business decisions by observing customers’ spending habits
- Contributing to an increase in sales (by keeping track of market trends) and managing risks
- Enhancing security by preventing fraud
Just like every other industry, the banking industry is also evolving. With increasing technology, the banking industry can offer new services to its customers, thus resulting in continuous growth.
Jim Marous said, “Bottom line, having a customer-centric culture is more than just a good thing: it’s become a matter of survival”. This states that customer satisfaction is the most important factor behind the success of a business and because of technology, the banking sector can master this area and continue to grow with every passing day.
By now, you must be clear about the benefits of technology in the banking sector.
Reputed software companies like Jellyfish Technologies provide various banking software development services and solutions that can surely increase your business growth and profitability.