Trends will matter in the banking industry in the months and years ahead. The challenge is to find out which ones are the most relevant to a given company. Is it big data and AI? Maybe the cloud? Or maybe open banking?
Now is a potential tipping point for banking: the importance of technology has never been as great in financial services as it is now. Strong competition from fintech firms and big tech giants augmented consumer expectations in the industry. Thus, banks and credit unions heavily invest in leveraging new technologies in order to build winning strategies.
We handpicked trends and technologies for bankers to consider this year and in the foreseeable future. These trends are discussed in no particular order of importance.
Cloud-based solutions are increasingly on demand and this trend is not going to vanish any time soon. In the near future, we can even predict cloud infrastructure to become the default web server environment and a game changer for companies. Banks are using already Amazon AWS and other well-known cloud vendors for efficient email management, human resources, software development, and testing, customer relationship management, and other tasks. Even if these tasks are not the core activities of a bank, many bankers predict that it won’t take too long before many financial institutions start using the cloud for core services. Many experts predict cloud-based core banking becoming more mainstream, that the majority of new core banking projects launched by 2020 will be in the cloud.
Voice Banking
Voice interface technologies allow real-time voice communication between human speech and a device, facilitating hands-free computer use or providing answers, replies, and solutions to questions/problems. Products such as Siri, Cortana, Alexa, and Google Assistant dominate this market for a home and mobile use. Voice UI systems can be used with much bigger ease. Especially for elderly and disabled banking customers voice banking is the perfect solution to avoid the hassle of going to a local branch. When it comes to voice banking, top fintech companies are increasingly developing APIs that integrate cleverly voice assistants with a bank system.
Imagine banking completely online without any physical branch or any teller. Establishing a digital-only proposition is becoming more and more widespread as more non-traditional banking solutions are becoming available to customers. The latter switch to digital-only banks for customer-centric products and services.
To gain competitive advantage, banks must constantly scout, monitor and scan their corporate environment to detect risks and opportunities. Innovation Management can be accelerated by running efficient Trend and Technology Management.
For more, check out how the Genossenschaftsverband Bayern e. V. (GVB) - one of the largest German banking unions successfully manages an innovation portfolio with more than 130 banks.
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