Banking and Finance is one of the most essential, vital and integral parts of any economy.
Development in this sector leads to overall economic growth and lead to a significant impact in an incredible way.
In the current “Global World” and the “Digital Era” have to lead to a massive evolution and innovation in the Banking and Finance Sector.
In the last 2-3 decades, there is a complete transition in the Banking and Finance Sector, and it is continuously improving and getting better, faster and revolutionary day by day.
The Banking and Finance Sector have seen unprecedented growth and a great transition from the ’90s with the begin of liberalization.
From providing essential Banking Services where records were handled manually, and simple intercity cheque transfers have gradually transformed to a New age Digital Banks with faster Internet Banking, ATM transactions, Instant Fund Transfers, Mobile Banking and Anywhere Banking.
We have seen another set of transformation in the Banking and Finance Sector.
In the last few years, Non-Banking, Technology Majors and Fintech Startups have steadily expanded their footholds in Financial Services Domain.
These days Globally, Fintech companies constitute about 33% of the Financial Services Business Revenue.
These players in the market are perceived as drivers of innovation in the industry in current global scenarios and time to come.
The Banking and Finance Sector is continuously changing and improving and always breaking the old trends and setting new ones. We will further discuss what all new trends are changing the Banking and Finance Sector currently and in future.
The Current and Future Trends in Banking and Finance:
What changes in the Banking and Finance Sector getting the most traction? To find out more, let’s look at the latest and freshest trends in the Modern Banking and Finance World.
1. Digital Banking:
Digital Technology is continuously and rapidly changing and providing new and innovative solutions.
All the Banking and Finance Services are shifting on Online and Digital platforms, making them competitive as it requires only the cost of improvement, replacement and up-gradation.
The latest trends which are gradually improving, making the Banking and Finance sector more affordable, cost-efficient, more straightforward, paperless, signature-less and Branch-less Banking and more.
With Digitization we can make instant and faster payments by way of IMPS (Immediate Payment Services), RTGS (Real Time Gross Settlement), NEFT (National Electronic Funds Transfer), Online Banking, Telebanking, Mobile Banking and much more.
Digitization resulted in the reduction of cost in Banking Processes, Faster Transactions and Services, Increase in Revenue Generation and Reduction in Human Errors.
Further leading to Higher Customer Satisfaction and providing them Personalized Solutions and an overall improvement in overall Banking Experience.
2. Real-Time Payment (RTP)
Real-Time Payment Interface has changed the way payments are made. This platform allows all Banking and Financial Institutions to use the payment innovation and make instant transactions.
With Mobile Banking and Digital Commerce have created the need for faster and safe payments created within the countries.
We are considering an RTP payment system to be the future of Banking.
RTP network allows to clear and settle payment instantly or real-time basis and available 24 hours and 365 days, unlike other Internet Banking Systems.
3. Mobile Banking Technology
Mobile Banking Technology is the most dominant current trend in the Banking and Finance Domain.
The number of Smartphone users have increased multi-fold through the usage of Mobile Banking in some ways, such as:
Transactions for Checking Balances, Funds Transfer, Bill Payments, Online Purchase and Payment through Mobile Apps, which resulted in real-time payment settlement.
Usage of Mobile Banking has changed the way of Banking from Traditional to Futuristic. In years to come, it will lead to more efficient and effortless Banking.
We can see that the Mobile Banking future trends reflect that the Internet of Things (IoT) and Voice-Enabled Payment Services will become the reality of tomorrow.
These Services will be accessible from any smart devices such as Smart TV, Smart Cars, Smart Homes and any Device becoming Digital and Smart.
4. The Teller Kiosk:
These days Banks are moving from Teller Counters to Teller Walls; this is one of the emerging and latest trends in Banking.
Most Banks was experimenting with this idea and installed some branches with this model.
These Teller Kiosks are self-contained pods, and they can perform a wide range of functions and transactions for the customer.
With the usage of technology, the concept of conventional Banking is changing, and transactions are moving towards Technology Platforms. Teller Kiosks are gaining importance these days.
The transactions handled by Self Service Kiosks are Withdrawal and Deposit of Cash, Deposit Cheque, Fund Transfers, Balance Enquiry, Stop Payment, Bill Payments, Service Alerts and much more.
5. The Digital-Only Banks
Digital-Only banks are a recent trend in the Banking and Finance sector and taking place everywhere. With Digitization in recent times, the Digital-only Banks have emerged, and they are functioning on the Paperless and Branch-less Banking Systems.
This new breed of Banking Institutions are taking over the traditional Banking, and they provide Banking facilities through IT platforms which is accessible on Computer, Tablet and Mobile.
6. Cloud-Based Banking
Cloud-Based Banking gaining importance and soon to become more mainstream and many experts are in the view that the majority of new core Banking projects will be launched on Cloud-based Banking Systems.
Cloud-based technology improves flexibility and scalability and increase the efficiency and support easier integration of new technologies and application with result in faster services, solutions and data security.
7. Artificial Intelligence Robots
Artificial Intelligence Robots are the latest and emerging trend in Banking. Many Banks globally have started to experiment and adopt Chatbots or Artificial Intelligence Robots for assisting customers. Currently, this technology is at an early stage of evolution. Still, it is one of the emerging trends in the Banking and Finance sector.
Installation of chatbots/AI Robots will help the organizations in decreasing the overall cost, improve customer services, enhance revenue and reduce the risk of human error and frauds.
It will also assist in analyzing the customer behaviour and patterns, collate surveys and feedback which help in taking better financial decisions.
8. The Rise of Cryptocurrency and Blockchain
The most crucial feature of Cryptocurrency is that it relies on a technology called Blockchain. Blockchain is the new trend, and this works around the technology that operates on principles of Computer Science, Data structures and Cryptography.
It is the core component of Cryptocurrency which said to be the future of Banking and Financial Services globally.
Blockchain uses technology that relies on a global network which jointly manages the shared database for processing, verifying and recording the transaction on the public ledger without any ability to modify it.
Revolutionizing many industries and will lead to a minimum or very fewer chances of fraud, enhance transparency, faster processing of transactions, less human interventions and build an unhackable database.
Impacting the Banking and Financial Services by way of Payments, Clearances, Settlement Systems, Stock Exchange and Share Market Transactions, Trade Finance and Payment Settlements and more.
9. Smartwatch or Wearables:
Smartwatch is the latest Technology Development and a new trend in Banking too. Banking and Finance Sector is focusing on to create Smartwatch or Wearables to have features for Retail Banking.
This technology will be the future of Retail Banking and provide the majority of Banking services with just a click and user-friendly interface on their Wearable device.
10. The Rise of Fintech Companies
With the changing trends in Banking and Financial Sector, Fintech Companies are gaining importance in this sector.
With the use of Financial Technology, these Companies have emerged as a disruptive force and became a significant player in the ecosystem. They are taking over the traditional Banking to an entirely new platform.
Fintech Companies provide App-based Banking and Financial Services or Solutions, which offers faster transaction with ease of use and better customer experience. It helped in the reduction of sales cost and higher revenue as the volumes are increasing over these platforms.
Banking and Finance Sector is continually growing and improving since its inception.
A Leading revolution across the sectors as all of them are directly influenced and impacted by this sector.
With the current and future expectation in Banking and Finance domain,
we have highlighted a few of the Recent and Future Trends which are resulting in moving from conventional or traditional Banking to futuristic Banking.
These trends are making the life simpler, more accessible and convenient and lead to an improved customer experience which is cost-efficient and result in better profitability.