Technology has changed just about every facet in every industry, including banking. Because there are fewer and fewer banking procedures that require you to actually go to a bank and interact with personnel, traditional, brick and mortar banking is on its way out. Online banking has taken over this sector and changed it entirely so that nowadays, you can open a bank account and handle transactions online and in just a few minutes – without the assistance of a bank teller.
As tech continues to change the banking sector, there are plenty of trends and insights to keep up with. Let’s look at seven new technologies that may change banking in the next five years.
1. Blockchain Technology
The most expected change in banking technologies is the introduction of blockchain technology, which could potentially decentralize financial management as we know it and turn it into a network of PCs. If (or when!) this happens, every transaction will come in the form of blocks that are then encrypted and added to the blockchain. Sounds pretty futuristic, doesn’t it?
2. Bank Partnerships
More and more banks are beginning to partner with different companies in all different industries, depending on how much their services will benefit the bank’s customers. For example, Cardlytics partnered with the Bank of America in order to plan their marketing strategies by using data on how their customers use credit cards.
3. ATM Upgrade
We already have ATMs that can perform contactless payments. However, it doesn’t end here! Some ATMs are already testing eye recognition and biometric authentication as a means to increase security.
4. Digital and Mobile Banking Improvement
Banks are already investing lots of funds into their digital and mobile banking systems. You can now check your balance on your smartphone, and open new accounts with the click of a button. It’s speculated that AI in the form of chatbots will be introduced to these systems in order to further help users with various procedures. So very soon, you won’t even need to call your bank if there’s a glitch in the system or you have a specific question. The AI will be able to help you out.
5. Enhanced Experience
Now this may contradict number four, but hear us out. It’s believed that banks will soon behave like your favorite tech companies, in that certain locations will offer you the possibility to interact with a clerk to address your issues — or solve it yourself — via a tech kiosk that will help. People still prefer to interact with a real person when dealing with certain problems, so many banks will keep their human staff only for the individual needs of the customers, but rely on kiosks for basic procedures and transactions.
Given that we already carry a physical card of our bank on us, it goes without saying that it’s possible we will also develop wearables to further improve our banking experience. For example, some reports suggest that bank tellers may soon be equipped with special glasses that would process the banking info of their clients while also tending to their requests. On the other hand, clients may soon be introduced to many more remote technologies, which will reduce their time spent in banks or in queues.
7. Automated Financial Services
Finally, it’s also expected that many of the jobs that we see in banks might be gone in the next five years, mainly due to advancements in cloud computing as well as machine learning. In short, the procedures and operations will be automated to a point where bank clients won’t need to interact with anything or anyone else but their smartphone or a conveniently placed kiosk at a street corner or inside a convenience store.
The Bottom Line
The future will come with many surprises, for both banks and their clients. It’s obvious that blockchain technology, given its popularity at the moment, will be one of the first and most important new additions to the banking sector. On the other hand, we must not forget the security and safety of personal data as well. Not all devices support face or print ID, but banks may work on wearables equipped with such systems designed only for the banking needs of their clients. All we can do is wait and see where banking technology takes us!