Today society and technology are evolving faster than the adaptation capabilities of the organizations. The emergence of cloud, social, Internet of Things (IoT), analytics, and mobile offer valuable data sources, which enable companies to interpret information efficiently at lower costs.
Technology has pervaded the financial sector and brought in digital banking capabilities. The government and the Reserve Bank of India (RBI) took certain initiatives to increase the use of digital banking during the 2000s. The decreasing costs and more awareness have increased its usage.
Online banking improves customer satisfaction by delivering ‘anytime anywhere’ services. Banks are able to reduce costs and increase penetration through this medium. Here are four emerging technologies.
- Virtual banking
With this technology, customers may transact using a digital bank account through devices like tablets and mobile through the internet. The entire procedure is branchless, paperless, and provides a 24X7 access to the clients. Some of the services available include account opening, loans, term deposits, and investing in financial products like mutual funds and insurance.
- Artificial Intelligence (AI)
This technology is able to deliver personalized services based on the specific requirements of individual customers like zero balance savings account. AI is beneficial in collecting information and automatically developing models based on the data to communicate naturally. Some of the key components of AI include natural language progression and generation, machine learning, and computer vision.
It is a technology that mimics human performance through rule-driven procedures. Although this technology is not widely adopted by the Indian banks, it is expected to grow over the next few years. It will automate repetitive processes thereby reducing human judgment. Robotics is a scalable technology. Moreover, it is affordable, which will be beneficial in automating high transaction volumes. Some banks use robots for customer services such as demat, banking transactions, loans, fixed deposits, and locker facilities. Additionally, robots are deployed in retail banking, treasury, human resource management, trade and forex, and agri-business.
- Blockchain Technology (BCT)
Worldwide, BCT is used for record maintenance, money transfers, and other back-office operations. This technology is also useful for payments, safely managing documents, treasury and securities, trade finance, and reporting. BCT is also beneficial for preventing frauds, enhancing procedural transparency, and improving the resilience of the information technology infrastructure. Moreover, this technology is cost-efficient and offers provenance and audit ability.
In addition to the aforementioned technologies, Indian banks may use others to improve their efficiencies. Google glass may be used to detect the closest bank location or automated teller machine. It may also be used for checking account balance and making video calls for technical assistance. The Augmented Reality (AR) app integrates digital information with the customers’ environments in the real world. It is used by banks to list properties, shopping centers, dining destinations, and branches and ATMs.
Nonetheless, the Indian banking sector has still not experienced the wide adoption of emerging technologies. Fortunately, large investments and teams are being developed to use these in the near future.