Technology trends influence the banking industry

Dragos Ruse, Digital Marketing Manager at HyperSense Software, shares the coolest tech developments to watch out for in the banking space: AI, web3, cloud computing, blockchain, and fintech

No matter how big or small an industry is, the presence of technology as the primary driver of corporate development creates an immense opportunity for the majority of our society. For instance, the rise of the ‘dot com’ boom marked a turning point by redefining the ways in which technology may become a cult, going beyond the bounds of accepted industrial norms.

This kind of change is particularly relevant to the banking sector, which underwent a full transformation as soon as the term ‘fintech’ was coined, employing technology as the conductor to support the majority of financial services in the contemporary day.

When entering the modern financial environment, one can see how Fintech companies are battling old systems to completely transform banking services and make them more accessible to everyone with the least amount of collusion.

The emerging technological advancements will likely make banking future-proof. Tinka, a Dutch fintech company that we have been working with since 2020, developing their mobile app & other consumer reach products, is making a huge impact on how it simplifies daily customer interactions with a digital banking product.

Days have passed since waiting in a huge line at the bank was the norm. The uncharted realm of video banking has recently been explored with the advent of AI-enabled technology. This will make sure that integrated remote banking systems would provide an interactive consumer experience. Similarly, the disruption brought on by AI can be assessed by chatbots that exhibit a high level of empathy while providing counselling services to difficult customers.

There are numerous techniques to accomplish personalisation in the banking industry. Banks, for instance, can consider the preferences and requirements of various demographic groups. By doing this, it is feasible to precisely target offers and address the key points unique to each segment, such as security concerns for Boomers, financial information for Millennials, virtual support for Gen Z, and cutting-edge technologies for the need of Gen X.

The evolution of the banking sector, which saw the introduction of ATMs in the 1960s, card-based payments in the 1970s, 24/7 banking in the 2000s, and mobile banking in the 2010s, is a further solid reason to implement customisation. The next phase, which involves using AI to personalise services, is now essential.

AI has the potential to generate an additional USD 1 trillion in value every year for the banking sector. Banks may boost their revenue, deliver distinctive multichannel experiences, achieve at-scale personalisation, and speed up innovation cycles by utilising this technology in their favour. Out of ten possible results, these are merely four of the most important ones.

With the emergence of blockchain technology, a slow banking ecosystem that enabled fraudulent financial transactions, extortion, and a shelter for tax evasion was inverted. In contrast to the sorts of fiat currency presently in use, the advent of blockchain technology meant an alternative decentralised currency paradigm, which proved to be a cure for bringing banking under the control of law enforcement. Additionally, a decentralised ledger system for transaction maintenance would enable banking institutions to compile transactional data into a shared resource, preventing any attempts at manipulating it.

Running applications online instead of running them locally on devices has become the norm for online business operations. Cloud use has been included in the business strategies of more than 92% of today's modern firms. 36% of those businesses spend more than USD 1 million every month on cloud services.

Cloud computing for banking enables banks to keep a direct line of communication with their clients. No matter the location, you can deal with a number of difficult problems with the aid of cloud-based services. Traditional storage methods can be inefficient and difficult to use due to the retention of large amounts of data. Whereas the cloud does not experience this. Because cloud computing makes operations more effective, you may easily arrange and manage your services.

Since reliability is one of the key benefits of cloud computing in banking, the bank may also focus more on the user. All procedures are organised via cloud-based services, which also give customers a sense of security. The whole sector genuinely benefits from the digitalisation of the banking process.

Without question, safety is crucial for every business. In the past, traditional technology appeared to be trustworthy. These days, dealing with financial difficulties in a traditional way comes with a lot of risks. Banks that use the cloud may feel safer because they can withstand more destructive factors than can occur. Financial crime and money laundering can be readily avoided.

Banks can greatly increase their efficiency with cloud computing, which will allow for new developments. Unlimited access to a single source always facilitates and helps to produce fresh ideas. Furthermore, customers and bankers can simply combine modern technologies with convenience. When there are no innovations, the company ceases growth, which is a rather logical factor in the modern environment.

A company's options are higher due to how advanced the cloud service is. As the need for conventional technologies disappears, advancements in the business world result in cost savings. Bankers have begun to feel aided when setting priorities and choosing the best projects that are worth investment.

Decentralised financing and web 3 work best together. These two are frequently combined in new businesses. They think that people can manage their money without banks and smartphones can be used to access these new platforms. By 2023, 84% of smartphones are anticipated to be in use worldwide.

Teams like ours always work to produce technological marvels that are created like works of art. Every time they develop new software for growing markets, designers & developers continue to strengthen their skills and translate their expert visions into mobile & web apps successfully created to become users’ favourite tools.

About Dragos Ruse

Dragos is Digital Marketing Manager at HyperSense Software. He is passionate about communication, marketing, digital, technology, software development, mobile apps & more. The latest trends in digital and the evolution of technology stimulate his mind to find and create something that perhaps hasn’t been done yet.

HyperSense Software

HyperSense Software is a global software development, design & consultancy company. Expertise proven by many successful projects deployed in the past 15 years, expanded over multiple industries like Fintech, Logistics, Automotive, IoT, Social Networks, Healthcare, Communications, E-commerce, Location Tracking, etc. The newest technologies are embraced and adopted at early stages.