What will the future of banking look like?

For many people, banks are an integral financial ally.  They offer a variety of functions including loans, financial advice, savings, and financial management. Even though the industry is not as technologically advanced as a number of others, it continues to showcase positive progress. From needing to bank with a brand that has a local branch to access mobile banking services at any time of the day, banking continues to evolve somewhat to meet with the demands of the day.

What does banking offer?

 

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Modern banking revolves around the provision of great quality customer experience and service. Many banks have set up websites, online portals, and social media accounts to facilitate efficient and timely communication with their clients. However, they still embrace traditional banking methods, albeit with some aspects of modern integration such as accepting diversified currency. While these options may have been considered revolutionary a while back, they are quickly losing their appeal and relevance to a tech-savvy customer base. For instance, while the ATM offered a proprietary way for people to access money from their accounts without needing to queue up and do it within banking hours, it is rather redundant in an age when people can make payments from their mobile phones.

What does the future hold for banks?

As with every other sector, the financial industry must evolve to meet the needs of a continually technically advancing populace. Canada’s banking system, and indeed other systems around the world, is faced with a necessary reaction to a transforming world. Considering the affinity towards digital currency with real-time movement at the expense of physical cash, a change in approach could be the only way for banks to find a way to survive in the years to come.

But how can this change of approach be achieved?

Embracing the internet

 

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Millennials make for an interesting consumer demographic, whom much has been written about. This group, comprising people born between 1979 and 1995 will make up the larger adult population for a period of time. Millennials have had access to mobile phone technology for most of their lives, with younger generations guaranteed to have enjoyed the use of these miniature utility tools for even more significant lengths of time. They are very likely to have developed a preference for services that are offered through the internet, due to their convenience.

The banking industry has already begun to experience this shift. The high internet literacy of younger consumers has contributed to the development of financial applications such as Acorns, Mint and Bloomberg. Their popularity has raised the bar for financial players, challenging them to adapt or die out. While there are other platforms through which banks can shake up their operations to meet the demands of the future, embracing the use of the internet could be a good way to start.

Improving customer satisfaction

Banks could embrace methods to improve user experience and boost customer satisfaction as a way to stay attractive to potential clients. The high level of competition in every aspect of business demands that brands distinguish themselves from the competition through the ability to offer top quality customer experience. From completing tasks in fractions of a second to the integration with smart technology and the regular use of customized recommendations, improving user experience could be integral to achieving customer satisfaction and developing value.

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Innovative integrations and value-added experiences by major brands such as Amazon, Apple, and PayPal have raised the standard of expectation of user experience. Applications and websites which offer evolved banking services are dedicated to improving the quality of user experience. Banks must respond by taking up the right technology and personalized banking approach to offer the best value experiences for their clients to remain competitive.

Intelligent banking

Technological advancement is inevitable and expansive, as is visible in different sectors. From flying drone deliveries to 3D printed prosthetics and self-driving cars, the future looks to be smart. Consumers have already started enjoying the benefits of smart technology in different parts of their lives and will expect banking to keep up with these demands. Banking may need to incorporate the use of artificial intelligence in order to provide optimal customer experience.

 

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But where can artificial intelligence find use in banking? AI has already started to set its roots in the industry, although only as a tool to reduce fraud. It could be an ideal personalized financial advisor on the go for clients, as well as a tool to improve customer experience. AI-related tech could come in handy in different aspects of banking to improve the ability of banks to offer personalized and streamlined services to their clients.

Final word

Past innovations will very likely have an impact on the future of banking.  Developments such as blockchain and artificial intelligence have already had a significant impact on banking, and have raised the need for proactive action. In order to survive, banks must simply evolve to meet the needs of a more virtual financial front. Only by taking up the transition to a seamless, direct, automated and virtual financial ecosystem will banks remain viable. 

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