Future Banking – Taking a Peek

The future of banking will be so much more than just banking. It will go beyond digital offerings such as real time payments, checking balances, paying bills and making mobile check deposits. The future banks will be data houses that will utilize a customer’s data to weave a financial and personal information avatar of each customer. This will enable banks to work beyond their traditional roles as financial advisors and keepers and become value providers rendering tailor-made solutions for all needs.  Let us explore a few key trends in the changing digital transaction banking landscape:

Future Banking – Taking a Peek

  • Financial suggestions & warnings using artificial intelligence: AI & ML will be able to deliver advanced warnings, recommendations, and advice to change course to avoid a difficult situation instead of providing post facto notifications. In many ways, the future of banks will be about providing solutions instead of selling.
  • Workplace developments at Banks & Institutes: As financial institutes embrace the various advantages of AI &ML over human limitations, they are discovering the competitive edge provided by automation urging them to rethink their talent-scape. An efficient future should probably see a successful integration of digital human workforce with the benefits of both. 
  • Integration of data & use of automation to combat CyFi: Newer Banks are always at risk of cyber risk and financial crime (CyFi) resulting from automation & digitization and massive growth in digital payment volumes within countries and internationally. With time, fraudsters have become more electronically sophisticated and impersonal too. Meanwhile, regulators continually revise rules to account for illegal trafficking and money laundering. A traditional siloed approach to these interconnected risks is becoming increasingly obsolete lending the need to rethink the operating model. As such, banks should utilize and integrate data from different functions to intensify customer identification and verification. This can be achieved using data, automation and analytics along with the power of Artificial intelligence and machine learning. 
  • Collaboration of banks with multiple sectors: In order to sink deeper into the customer’s lives, banks should partner with government, doctors, hospitals, merchants, retailers, telecom & other businesses, to deliver the best and most accurate transaction banking solutions with enhanced customer experience. 
  • Tapping the untapped segments: Banks can serve various segments such as the currently banked, underbanked, unbanked or unhappily-banked populations. 
  • Power to consumers: Increasing digitization will also lead to greater transparency, enabling the consumers to compare and choose from among several products & services in real-time. 
  • A single ecosystem to manage all government agencies: Today, governments of developed and developing economies are promoting financial inclusion and seeking for themselves a centralised database for citizens, including payments, transfers, personal data and more. The Public financial management system(PFMS) is one such platform by Mindgate – a leading online payment solutions provider in India – integrates with the banking ecosystem for fund management as well as enables a DBT (Direct Beneficiary Transfer) mechanism for faster and efficient disbursement of benefits. 

In this era of digital disruption, banks should speed up now to not only expand but retain their market share. They must embrace this revolution with the alliance of an efficient software provider such as Mindgate, which is more than equipped to handle the ongoing digital challenges.  It is now up to the banks to determine whether they want to be industry pioneers, swift followers, or just reactors to whatever the future holds!