The ongoing tech boom had a major impact on each and every sector, including banking. Technological advancement has opened up horizons for advanced and innovation-friendly companies that leverage financial technologies to discover untapped markets. Kavan Choksi points out that at the moment the banking industry is undergoing a massive phase of digital transformation. Machine learning, robotics, and artificial intelligence are some of the new age technologies that are pivoting this sector into a digital world.
Kavan Choksi talks about how modern technology is used in banking
New, cutting-edge innovations and technologies are transforming the banking industry. Digital innovation is playing a huge role in enabling banks to provide an expansive range of services, enhancing customer experiences, and improving efficiency. There are many ways modern technology is used in banking, such as:
- Online and mobile banking: Digital banking and mobile banking are undoubtedly among the most popular technological innovations. These solutions basically allow customers to effectively manage their finances on the go, including transferring funds between accounts, checking account balances, and paying bills. Online banking allows people to carry out a variety of banking tasks simply via their smart phones, doing away with the need to visit a physical bank branch.
- Mobile payment solutions: Mobile payment solutions allow customers to make payments in a jiffy using their mobile phones. This payment option is slowly but steadily replacing traditional payment methods such as cash or credit cards in many situations. Mobile payment solutions facilitate contactless payments, which became the need of the hour during the Covid-19 pandemic.
- Artificial Intelligence and machine learning: Machine Learning and Artificial intelligence (AI) are being increasingly used in banking to improve customer experience and efficiency. For instance, virtual assistants and chatbots powered by AI are being used for delivering personalized recommendations and customer support. They can be also automated to answer frequently asked questions. Machine learning algorithms additionally are used today to detect potential fraud and offer targeted product recommendations.
- Blockchain and Cryptocurrencies: Blockchain technology and cryptocurrencies like Bitcoin and Ethereum are increasingly gaining prominence. They help in facilitating efficient and secure transactions between parties without any such need for intermediaries. Such technology additionally has the potential to transform banking by competently enabling faster and more secure cross-border payments, while improving transparency and reducing transaction expenses.
- Cloud Computing: Cloud computing is widely used in banking today for both storing and processing expansive amounts of data. Hence, they go a long way in reducing the need for physical data centers and servers. With cloud computing, banks are able to scale their operations with ease, as well as improve data security and disaster recovery capabilities.
On the whole, Kavan Choksi points out that by leveraging a variety of new age technologies, banks can both enhance their customer service experience and improve the efficiency of their operations. Digitalization in banking has become critical to expand customer bases and compete with peers in the tech-heavy world of today where customers expect prompt results. The customers now demand fast-paced online banking solutions and are unlikely to settle for slow and cumbersome traditional banking.