In the past, banking primarily involved the completion of numerous paper forms, visiting physical branches, and enduring lengthy processing times.
But wow, how times have changed! Nowadays, it’s all about software, APIs, mobile apps, real-time payments, and a bunch of other cool solutions that really cater to what customers want.
No matter if you’re in Asia, Europe, or anywhere else, thanks to the latest tech, accessing your bank is now quicker and way easier than ever before.
All these innovations have one main goal: to make your banking experience better and keep you happy. In this guide, we’ll dive into how modern banking software has totally transformed the customer journey and achieved some amazing results.
Let’s begin!
Key Takeaways
Understanding the biggest change in this segment
Discovering the system priority for safety and security
Looking at the emergence of AI
Decoding the impact of core banking
The Biggest Change – From Channels To Journeys
Conventional banking focused on optimizing channels, like call centers, branches, etc. In contrast, modern banking prioritizes journeys, such as onboard, pay, save, invest, and borrow. The whole point of the core banking software technology is to separate the experience layer from the core, so that each stage of the journey can continuously be enhanced. So, how does this impact customers? Friction is greatly minimized, allowing them to open their accounts in just a few minutes rather than waiting for long periods.
There is uniformity across all touchpoints. Customers receive continuous guidance on fees, savings milestones, cash-flow tips, and more. To offer exceptional service, banks incorporate design solutions and reusable components to ensure a seamless user interface across various products. Aside from that, they also employ microservices and event-driven architecture to deliver various features fast.
Intriguing Insights
This infographic shows the latest trends in banking technologies
These Systems Prioritize Safety And Security
Contemporary banking software solutions utilize advanced encryption technologies to protect the infrastructure against a variety of online threats, particularly those posed by hackers and malicious software. Clients are offered two-factor authentication and biometric verification, which serve as an additional layer of security.
Because of these cutting-edge features, banks are capable of maintaining the highest KYC standards, and, at the same time, stay compliant with different crucial banking rules and regulations.
Everything Has Become A Lot More Personalized
Up until relatively recently, the vast majority of banks harnessed solutions that could be defined as one-size-fits-all, which are no longer as useful. In contemporary banking, institutions that embrace innovative methodologies utilize Unified Customer Data (UCD) to gain a comprehensive understanding of their clientele, including their needs and preferences.
This advancement enables banks to develop tailored financial products, provide individualized guidance, and present promotions that genuinely enhance the client experience. It is imperative to acknowledge that obtaining data-driven investment advice has transitioned from being a mere option to a necessity. It has basically become mandatory.
And this isn’t just an assumption but a fact. Namely, according to numerous surveys, most people would easily switch banks if they aren’t provided with personalized financial assistance. This is especially the case with younger generations (Gen Z and Millennials).
Interesting Facts Evolving technologies like AI, SaaS, machine learning, and APIs are transformative in their ability to help banks manage risks more effectively, remove silos, streamline operations, and enhance decision-making processes. (Source)
The Inclusion Of Artificial Intelligence
In the past several years, AI has become an integral part of different industries due to its efficacy, which is one of the main reasons why banks decided to include it, as well. Today, consumers can contact the virtual agents whenever they want to resolve routine tasks, such as all kinds of disputes, limits, etc.
On top of that, AI can spot when your paycheck might fluctuate, predict if you’re about to go overdrawn, and offer handy last-minute options, like setting up a little buffer or postponing a bill. And that’s just scratching the surface of what AI can do.There’s a ton more it can handle that we didn’t cover today, but the bottom line is that AI makes a bunch of services and tasks faster and smoother.
Core Banking Enables You To Access Banking Services All The Time
The truth is that we live in a world where contactless payments have become practically essential and mandatory, hence it’s pivotal for banks to provide their clients with 24/7 access.
With the help of banking software technology, customers can easily handle their financial tasks from anywhere, anytime. The core banking platforms are always up and running, making it super convenient for everyone.
Apart from that, if by any chance clients experience any problems, they can contact customer support at any moment, and they’ll do whatever they can to properly address and resolve the issue.
Based on everything that was stated today, it’s easy to conclude that the core banking systems aren’t just some random features, but solutions that have managed to completely transform customers’ journeys. Above all, they finally meet all their demands and expectations.
FAQs
What are the trends of new technology in banking?
In terms of the latest banking trends, the convergence of AI, Cloud Computing, and data processing in banking is bringing forth unprecedented opportunities.
How have banks evolved over time?
Before long, temples got into the business of lending money at interest, much as modern banks do. By the 18th century, many governments gave banks a free hand to operate, based on the theories of economist Adam Smith.
How will banking evolve in the future with the change in technology?
With digital banking, customers can now manage their finances, check account balances, transfer funds and pay bills anytime, anywhere.
