Image Source Credit: Banknxt.com
The growth of technology has brought about revolutionary changes in Banking as it has in every other industry. From the days when physical registers where manual entries were needed to register customer transactions to transferring money across continents in seconds the whole transformation has been a remarkable journey. Let us look at some key areas where banking has revolutionized it-self.
Card payments, internet payments and e-transfers
Imagine a world without Visa, Mastercard, payment gateways, etc. We cannot right? Let us look what these have meant to banking and general financial system. E-Commerce in general (encompassing all of the above and availability of goods and services through internet based market sites) has made redundant international boundaries and has mocked the geographical distances as a deterrent to doing business. But is that all it has done? No it has done a lot more locally. It has digitalized economies, reduced the circulation of currency notes to a large extent, given an additional source of income to banks, channelized the financial flows within the primary banking networks instead of parallel cash based networks, reduced cost of finance and made more funds available to buyers and sellers as banks extend credit facilities more easily.
What about tomorrow?
While all this has already materialized and will continue to encompass greater sections of the society in the coming days, what future trends can we envision in this area? Think about the below suggestions:
- Integrated e-commerce sites within your banking login – Order your grocery with your internet banking login.
- Common bank sites – Integrate all your bank logins into one service provider site, like how emails are managed on Outlook.
- Cardless payments through mobiles and wearables like credit card in mobile (Samsung pay, Apple pay), MasterCard watch, VISA Ring, etc.
- Integrated banking with sovereign identity like Aadhar, EIDA, etc. smart cards.
- Auto pay billing, buy online or offline and payments will be managed by your bank or financial service provider (Bio-metric authentications, IRIS, etc)
- Personal bots to handle your financials.
Well I don’t want to restrict your imagination to the above, come up with more innovative ideas and put them as comments.
Customer relationship management and automated channels
Imagine life a couple of decades ago. Going to the bank was as dull a task as any. You needed to wait in long queues and go through huge manual forms and processes. The advent of customer relationship management, segmentation and automated channels for mass banking changed the scene. People found going to bank an easier task and more financial transactions started getting routed through the banking network thanks to key differentiators like credit cards, multi-currency travel cards, cash deposit machines, ATMs, Internet banking, etc. have made ground breaking changes to the way banking was conducted. Now virtual assistants answer your queries and provide information about products and services. There are banking lounges that offer personalized services to visitors. Banks provide investment advice and wealth management options. This has transformed the way we think of banks.
What about tomorrow?
And what about the future? What can we imagine in this space, some of my thoughts:
- Banking integrated with your google assistant, SIRI, BIXBY, etc. for voice enabled banking transactions on your personal devices (Almost here)
- Bank away – Tell your bank where you will be and they will take care of your financial needs in your travel locations.
- Comprehensive personal financial predictions based on your 3 months earn and spend pattern
- Financial life planner – Goal tracking, re-planning, financial deviations, etc.
What else can you think of? Don’t be shy, be bold in your thought who knows you may create the next TESLA of Banking.
Well this is a today’s perspective of how banking will shape in the near future. A lot of research is already gaining momentum in technology circles about the use of Robots (Chat bots, Virtual assistant, Interactive Teller machines), Voice recognition (Alexa (Amazon) and Google assistant) and AI (Symantics, Compliance technology, etc.). There are many more concepts like global real time payments, IOT, etc. which are also catching up and with new age banking dawn visible over the horizon, it will be an interesting and exciting journey and banking may no longer be dull and boring. What do you think?