Disruptive Technologies Affecting Banking Sector
Disruptive innovations can alter the market dynamics by creating new markets or technically advance the markets. The new technologies are already changing the banking landscape with safety features like advanced biometrics, multi factor authentication and cryptography. Thus, making it easy for a customer friendly experience.
AI and Robotic Process automation (RPA)
Banks are leveraging the connected devices and the new age technologies like Artificial Intelligence and RPA for their regulatory and customer facing banking products/services. These solutions deal with compliance, regulatory, tracking, risk management and transaction monitoring. As banks continue to grow rapidly, those adopting these technologies will gain from the early entry advantage. Fintech investment, innovation, and adoption will help them see a significant return on investment (ROI) from fintech investments.
Democratising of AI and other technologies
A significant and emerging trend seen is the growing interest in AI and the related technologies. This can be seen in the democratized AI that shaping the work and technology related processes. Refer the image below to view the statistics.
This democratization of AI appears in the form of smart robots, AI based chatbots, virtual assistants, autonomous cars, drones etc. Coupled with other new age technologies like cloud and edge computing, augmented and virtual reality (AR/VR), Big data, banking and the financial industry can calibrate their business strategies.
It’s important to keep in mind that people strategy is vital before implementing a technology strategy. There is no point in opting for technologies that’s going to alienate the employees or cost them their jobs. With appropriate reskilling and retraining of the employees, there will be a smooth transition towards an AI-enabled productivity. Thus, opening new opportunities for the establishments. It is possible only if they encourage foresight and vision coupled with adequate investments.
Automation and the skill gaps
The demand for new age technology professionals like machine-learning engineers, data scientists and big-data developers is driving the job market. At the same time this evolving skill set is resulting in job loss.
Job loss is one constant concern throughout the implementation of AI and automation as machines replace human workforce. This is a valid anxiety affecting all industry verticals and domain.
This perception is consistent among employees who believe that their skills will be redundant in the next couple of years. There is also lack of access to training for these new skillsets to keep pace with today’s fast-paced jobs landscape. Closing this skills gap is essential for senior leaders in all industries to retain the employees trust and to move towards a productive future.
Changing Payments Landscape
Disruptive innovations and technological advances are impacting customer expectations and the payments industry is the one segment that’s benefiting the most. The continuously evolving payment methods like mobile payments, netbanking, cash vouchers, redeemable points, paybacks etc. are influenced by the consumers move from paying for a series of specific products to paying parts of everything.
Traditional financial institutions, banks, fintech firms and big tech players will require to keep pace with the changing consumer expectations. These payment trends will occur in combination with Point of sales (POS), mobile wallets, IoT, blockchain and cryptocurrencies.
This payments innovation will see a marked difference in the customer experience, reduction in transaction fees, the varied applications of data among other things. The insights provide information on the consumer behavior while allowing those organizations that process this deluge of payment data as the best for future consumers.
– Shantha Kumari,
Sr. Technical Writer,