Banks are considered the most vital sectors in the landscape of the economic market. Therefore, it is important for the financial institutions to make their system secure, reliable and updated with the emerging technologies. According to recent statistics given in the report of pwc, 77% of financial institutions will increase efforts to innovate their system. The innovation in the financial sectors will provide both the organization and customer a full-fledged facility. The facility of engaging themselves in a better experience of technology being around them.
Today, banking institutions are more likely to adopt the technological advancements in their system that result in better user experience and more traffic of customers on their doors.
Following are 5 major ways in which financial sectors are innovating themselves;
- Online Account Opening Service
If we talk about the time when it was hours taking mechanism of standing in the queues for opening a bank account. It was frustrating to fill up large documents along with multiple attachments for verification and record-keeping purpose.
Today, acknowledging it an issue for customers, banks have provided the facility of opening a bank account online while sitting anywhere. Through this, not only customers will be facilitated but also banks will be having a great benefit. More bank accounts will result in the growth of banking business models.
- Mobile banking
Banks have collaborated with the Fintech companies and provided their customers with the facility of mobile banking. Through mobile banking, customers can withdraw or transfer their money without going to the bank branch. All they need to do is to open a mobile account and put some money into it. Even when the bank branch is closed, customers can make transactions or transfer money anywhere at any time.
- Data Protection- Cybersecurity
Banks carry crucial information related to their organization and customers. For this, all the information should be secured so that someone could not use that information for malicious purposes. It is important for the banks to secure their data with advanced technology.
Today, banks are using innovative solutions to protect their data from cyber-attacks. These solutions are based on AI-based technologies that are thriving today in the fields of network security. Especially, when the system is online, there are more chances of a data breach. This makes it necessary for the banks to shield their system with higher potential protection techniques.
Banks are integrating their systems with new technologies and APIs. Open banking is facilitating the customers by collaborating with Fintech companies. Customers will now be able to see their accounts details in one place which will be easy for them to manage their money in an efficient way. Banks will be sharing their data with trusted third-party companies that are beneficial for both sides.
- Online Identity Verification
Customer onboarding is identified and verified by online identity verification using OCR. The data is extracted from the document and the required fields are extracted and verified for that particular identity. This helps in the credit card fraud prevention. Online identity verification facilitates banks in KYC and AML screening of their customer.
Banks are adopting new technological ways to innovate themselves and become a part of the competition in the economic market. Providing more facilities to customers to accelerate their business growth, is the main goal of financial institutions especially banks. In the future, more innovation will be seen in the financial sector.