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5 Trends to Look For in the Future of Banking Technology

Biometric Technologies
Security is an incredibly important part of the banking industry, and financial institutions will be using everything they have at their disposal to protect customers’ assets. Biometrics are an emerging tool that banks are taking advantage of to keep security at top of mind. In particular, biometrics are already being used overseas as an authentication method for ATMs. One example is in India, where iris scanning ATMs are being used at the Qatar National Bank. The idea is to use more secure credentials than a simple PIN to protect the customer’s assets, and to limit ATM hacking attempts.

Blockchain Technology
Rather than having a centralized location for transactions, blockchain technology decentralizes it and shifts the burden to a network of computers. With the transactions being broken down into packets that are attached to computer code, encryption becomes viable and allows for enhanced security. Blockchain technology is already being used by various cryptocurrencies like Bitcoin, so moving toward actual currency is the logical next step.

Mobile Banking Apps
The increasingly-mobile nature of technology means that banking institutions will need to learn from this shift. You can already see it happening thanks to solutions like mobile banking apps and virtual check deposit via a camera snapshot. Many professionals believe that mobile payment apps could threaten the existence of credit cards, and blockchain-based cryptocurrency could entirely replace checks in the near future. Services like Apple Pay, Android Pay, and Samsung Pay will see more use in the future.

Banking Automation
Thanks to the increasingly-virtual banking experience, physical institutions will become less popular and, in turn, will hire fewer in-house employees. These employees will be replaced by automatic solutions designed to offer the customer an ideal user experience without the need to visit the bank. According to Citigroup, there’s a possibility that by 2025, up to 30 percent of banking jobs could be lost due to this automation, and be replaced by robotic systems.

Partnerships with Financial Technology Companies
The best way to get ahead for financial institutions will be to partner with organizations that are known to develop tools for financial purposes. By forming partnerships with companies that are skilled in innovation and integration, banks will be able to create a memorable customer experience and help organizations better cater to their consumers’ needs. A perfect example of this is Cardlytics’ arrangement with Bank of America, where the marketing company can access secure information about purchases to recommend new transactions to consumers.

Smart technology will be the future of banking, and organizations that want to take a step in the right direction must actively seek ways to prepare for it. Here are three ways that banking institutions can keep up on what’s important for the industry, and how to prepare for major changes in the future.

  • Hire a virtual CIO: If your organization doesn’t have a dedicated point of contact for IT administration, a virtual CIO can help you make educated decisions about the technology solutions your organization wants and needs. It’s often a more cost-effective way of getting the professional assistance required for the position, and the cost savings compared to adding new salaries to your budget are undoubtedly beneficial.
  • Join a peer group: Surrounding yourself with others who have the same goals as you is a great way to keep updated on the recent happenings in your industry. You can discuss how to adapt to changes in the environment, which technologies work (or don’t work), and perhaps most importantly of all, get a leg-up on the competition.
  • Create an IT roadmap: Understand where you want your organization to be in the future is one of the best ways to start preparing for it. This is the purpose of an IT roadmap. By taking into account your goals over the next five or ten years, you can make proactive choices that allow your enterprise to thrive and grow in the long run. Often times, a second opinion from a third party is a great way to get a confirmation of how to proceed with the implementation of new technologies.

What are your thoughts on these developments in banking technology? Do you think that these lessons can be adapted to fit any industry? If you’re ever unsure of how to make your enterprise stand out in the modern age, IronEdge Group can help. All you have to do is reach out to us at 800-987-4766.

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