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AI-A Brief Document On The Future of Banking

The future of banking-From closed premises to open cloud system.

Banking is one of the most crucial pillars of any economy. However, the global pandemic has had an impact not only on the headway of digitization in other sectors but also on the banking industry. Heading down the same path, it appears that the beginning of the next decade will witness the automation of the entire brick-and-mortar banking system, which will eventually transform the future of banking.

Why is it vital for banks to embark on a digital transformation journey?

  1. Financial instruments like stocks, bonds, and shares had already been entered into the online system. The rising trend of Fintech apps and the evolution of cryptocurrencies have compelled banking services to adopt the scope of high-speed technological innovations. To be competitive, banks are integrating new tech, seeking flexibility in implementing emerging business models and making customer-centric strategies.

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  1. Apart from being customer-oriented, one prime concern that is causing the banking industry to go online is cyber security. The need to safeguard consumer data, integrate banking accounts with digital payment channels, and reduce the time it takes for customers to enter banking premises are other ways that the banking industry is being digitized.

But is it that simple? Would it be possible to entirely transform the banking services into a digital platform?

The word “entire” may sound a little whimsical! However, approaches and implementations, when done strategically, will undoubtedly help the future of banking sector to lead the way in the world of digitization.

  1. Digital transformation in banking services by updating.
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Update existing data analytics and data structures: By focusing on digital development and open business platforms, data storage facilities can be removed and new-age technologies can be adopted into banking services. The potential of Interfaces in the banking space is enormous, particularly for banks looking to find a way for newer technologies to interact with older systems and make the transition much easier.

For example,

  • A customer service bot on a banking website provides quick responses to a variety of customer inquiries.
  • In addition, the employee’s headache caused by the long passbook printing line has been mitigated by the installation of kiosk systems.

future of banking by ai

  1. Train and develop current skills at the appropriate pace.

Banks can begin by investing in the education and training of limited but capable cross-functional workgroups and then focus on the evolvement and growth of these teams as needed. Training these teams to handle digital platforms and creating a working environment that encourages iterative development delivery and faster digital transformation may also be a great thing.

For example, several banks have begun to structure their teams into clans groups focused on single tasks—trusting them with the resources and authorization rights required to complete each task. Agile approaches are well-known for providing excellent customer service, particularly in an Omni-channel atmosphere, which is an outcome of a global pandemic.

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  1. AI will assist businesses with their core values, such as client acquisition, retention, and customer service, and can pave it’s way towards future of banking.

Rather than maintaining a large assortment of brands that cater to different customer needs, financial institutions might very well customize product lines on other dimensions of their offering, such as correspondence, recommendations, service concepts, and even risk-based pricing. Companies will be able to shape their communication and sales interactions in real-time and hence the thank goes to AI.

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The bottom line

But, as the question above implies, is the future of banking as AI driven that simple? Before commencing on a digital transformation journey of banking services, those in positions of leadership must communicate with employees and assure them that new-age technologies are being used to assist them rather than replace them. Even executives and other employees can be trained to recognize and address signs of internal resistance.

While we may not be banking in the virtual world fairly soon, we anticipate that 10 years down the lane, artificial intelligence will power our banking services, with digital offices & employees recommending personalized products according to customer needs and requirements.

 

 

Priyanka Chakraborty

Author | Documenting thoughts to connect people

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