Banking technology in 2022 2

Blockchain, artificial intelligence (AI) and the Internet of Things (IoT) will have a big impact on the banking sector.

Money matters, and so does the banking sector. It is thriving, focusing on technological advancements. Trends in the banking sector change year after year with better innovations, growing number of startups, mergers and acquisitions, and customer expectations.

The adoption of online-only banking globally increased significantly between 2019 and 2022. In 2022, more than a quarter of British adults opened an account with an online-only bank. These figures clearly describe the importance that technology has generated in the eyes of banks.

Trend technologies used in the banking sector

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Banks focus on tailoring their products and services to people’s needs and, as a result, providing them with highly personalized experiences. This practice helps them to engage and retain customers. They are also looking to improve their current processes to increase banking productivity and customer satisfaction. Some examples of banks implementing the latest technologies are as follows:

1. Biometric recognition

It is used by banks to safeguard vital information and even to personalize digital signage. This technology instantly recognizes customers when they attempt to connect to the bank’s mainframe via a connected device and retrieves customer information for branch staff and other assisted or self-service services to provide personalized service.

2. Artificial intelligence

Artificial intelligence (AI) enables banks to manage record-level data at high speed to receive valuable information. Artificial intelligence is the future of the banking industry as it offers the power of advanced data analytics to combat fraudulent transactions and improve compliance. The AI ‚Äč‚Äčalgorithm performs anti-money laundering activities in seconds, which otherwise take hours and days.

3. Sound verification system

It was announced by Barclays to verify users based on their voice patterns. The system stores a recording of the customer’s voiceprint. After an initial registration, the customer will be able to speak to a customer service agent and during this time their voice will be checked against the stored voiceprints. This biometric solution reduces the time it takes for customers to verify their identity.

4. Big Data

It’s one of the most talked about things in the tech space in recent times. The large amount of data up for grabs is a puzzle that has the ability to unravel the main secrets of consumer behavior. It will give banks the ability to customize their services on a one-to-one basis.

As we know, the key to the success of a banking service lies in its ability to establish a relationship with customers. Transactions are becoming smarter (data capture via cards), giving banks the opportunity to capture more data about their customers. The challenge now for banks is to acquire relevant information from this data.

5. Zero trust

The concept of Zero Trust is to always treat your infrastructure as if it were breached. It assumes that no user, workload, device, or network can be inherently trusted. Each access request must be validated on all available data points, including user identity, device, location, and other variables.

6. Internet of Things

ATMs have been one of the leading IoT devices that make banks much more efficient by allowing real-time transactions, rather than waiting to see a cashier at a physical bank. ATMs have been one of the main IoT devices making banks more efficient.

7. Blockchain

Blockchain technology, both public and private, can be implemented in a variety of use cases in the financial world, opening up new sectors of banking services to the benefit of both banks and customers by enabling faster, cheaper, safer and more transactions. inclusive.

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With the rapid development of technology, businesses around the world are being disrupted. Banks realized a long time ago that they need to continually invest in technology to stay relevant in this era. There are many other innovations taking place in banking technology and the ones mentioned here are just the general trends that most banks are adopting in order to have the greatest effect on bank revenues over the next decade.

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