Emerging banking Technology: The evolution of financial services

The cornerstone of the Indian economy is the banking sector. It meets the financial needs of the 138 people of Crore. The banking industry has continually reinvented itself to boost business as well as the economy as an early adopter of technical innovations. The latest digital transition has ensured smooth consumer banking systems, and banks are moving from conventional brick and mortar institutions to adaptable suppliers of financial services.

The introduction of cutting-edge technology has made it easier for banks to reimagine their practises. New developments such as artificial intelligence (AI ) , machine learning (ML), the Internet of Things ( IoT), cloud infrastructure, blockchain and automation of robotic processes (RPA) also led to market growth through under-served regions. In fact, the banking method has changed from traditional to convenient, making financial products and services virtually available at the touch of a button.

Artificial Intelligence and Machine Learning

Artificial Intelligence and Machine Learning is one of Banking 4.0’s most significant components. It plays a vital role, to name a few, in core banking infrastructure, back-office functions, customer service, security, risk management and product distribution. Several manual processes are automated, and when the machine algorithm takes fact-based, impartial decisions by evaluating a broad background of data at an appropriate moment, we experience increased agility.

Cloud Computing

The advent of cloud infrastructure has made banking simpler through focusing on safe storage and 24-to-7 uptime and interoperability. Banks have the ability to engage directly with their clients to encourage the service to be available ‘anywhere at any moment.’ Through incorporating all of the financial system’s services , cloud storage secures transfers and thereby eliminates the customer’s time and effort.

Data analytics also helps forecast the actions of consumers and tailor goods for specific consumer needs. Different technologies such as smartwatches, smart voice-controlled speakers and displays have also been explored by banks, making banking easier for the consumer.

Robotic process automation

Robotic Process Automation ( RPA) is a groundbreaking technology that enables banks to automate processes across structured and unstructured data by applying pre-programmed rules. This increases efficiency and pace, and decreases the expense of administrative and regulatory procedures. In addition, it prevents human error and, if possible, documents the comprehensive history of systems to be used for potential comparisons.

The use of RPA benefits from prompt services , especially in client-related activities such as complaint settlement, account opening, credit approvals, etc.

Block Chain

Blockchain is going to totally change the financial business. In the one hand, this technology increases performance and is cost-effective and, on the other, offers better protection for the wide range of financial services. This allows banks to eliminate theft, manage loans, consider the operations of the client (KYC), inter-bank transfers, smart contacts, and many other banking services. Many of our banks are yet to discover the extent of possibilities presented by blockchain.

Inclusion financially

The disruption created by the advent of start-ups in FinTech and the rapid speed of growth has pushed banks to accept these emerging innovations in their services. In collaboration with FinTech companies, several banks have begun to incorporate smart technologies in their products. In their latest goods, banks are now embedding cutting-edge technology to appeal to consumer demands and widen divisions. Therefore, digital banking offers a seamless one-stop-shop for various cross-platform services, including deposit accounts, credit cards, investing, shares, etc.

It is no surprise that banks, rather than just lenders or cash depositing institutions, are now called financial service providers. The responsibility of banks is multifaceted and rising, from financial inclusion to supporting MSMEs to becoming facilitators for startups. The value of these transformative developments and the intensified digital transition of their operations and strategies have been realised by banks during the current crisis.

The social distance standards to curb COVID-19 have increased the use of digital solutions , especially payment, Internet banking and mobile banking applications. The entrance into payments and peer-to – peer loans of large non-Banking markets or aggregators such as WhatsApp, Amazon , Google and also the importance of Mobile Wallets for service providers such as OLA or Uber.

The introduction of non-banking aggregators such as Google Pay and now WhatsApp Pay has really accelerated financial inclusion by giving people who use it the most access. They have a seamless means of managing digital payments. The use of mobile wallets to make purchases has changed the lives of people every time an person takes an Ola or Uber taxi. With UPI nowadays, faster and safer payments are made.

As nearly all utilities are now accessible online, more individuals from rural regions and lower-income strata are signing in to these apps for their banking and financial needs. Clearly, banks today have a better scope and in this transition, FinTech entrepreneurs play a crucial role.

How to harvest the rewards of new innovations from Indian banks

There are various advantages of new technology, and the difficulty is to integrate them successfully in the way an enterprise runs. Infrastructure construction is the first step in digital transformation. It is important to adapt the infrastructure to the needs of banks and to match it with regulatory enforcement. In fact, all banks have now fitted themselves with the facilities they need, and this is a big move forward.

Banks require talented talent with experience in new technology to effectively set up and operate the infrastructure. As we know, talent shortage is a huge problem. These recently emerging inventions are the fields that are most in demand. Therefore, as part of the reorientation of duties, banks may either reskill or upskill their current workers, or recruit new talent in these fields before deploying them in their place.

It is well known that, relative to other employees, those staff who have completed future-ready training do much more in the sector. Since new-age innovations have a great impact, banks need to intentionally engage in employee upskilling. In India, several institutions have given end-to – end hands-on training for different banks to ensure that their workers are trained to handle the problems of the modern digital economy.

Follow Technewstp for the latest tech news , Tips and tricks also keep up with us on Twitter, Facebook, and Instagram.

Similar Articles



Please enter your comment!
Please enter your name here


Most Popular