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5 Technology Trends That Will Shake Up the Finance Industry in 2018
The financial services space is becoming increasingly more competitive. As such, banks and credit unions are systematically looking for ways to stand out in a way that creates value for customers while still achieving their bottom line. Enter digital transformation.
Now, more than ever, there is a lot of pressure for organizations to go digital across all processes and lines of business to improve customer experience. Here are the five technology trends we think will shake up the financial industry in 2018.
- Omnichannel Experience: Laptop or smartphone, day or night, home or abroad, customers want to bank when, where and how they want, making connectivity, or omnichannel, a continued focus for 2018. Unfortunately, legacy systems and complex processes limit financial institutions’ ability to adapt quickly. As FinTech companies are becoming major players in the customer journey, banks and credits unions will increase their use of open APIs to help automate processes and drive agility to quickly launch new products and services.
- AI 2.0: This year Artificial Intelligence will become even smarter, making banking more practical and making customers feel more connected. The new systems will learn, suggest and automate processes by analysing user patterns and behaviours. With AI 2.0 financial institutions will be able to provide customers with tailored services based on things like their investment portfolios, risk appetite, interaction history and baking habits.
- Mainstream of Cryptocurrency: Blockchain is a distributed digital ledger technology that uses cryptography and timestamps to provide a permanent record of transactions. This innovative, practically unhackable, technology provides a secure way of sending digital assets and enables faster payments at a lower cost than banks. With its increased transparency and accountability, Blockchain will continue to have an impact on financial institutions. Investments in bank-backed blockchain projects will be a high priority in 2018 as they look to harness the power of this technology.
- Biometrics: Security has always been a concern for financial institutions, but having to remember a password can disrupt the flow of transactions, resulting in a frustrating encounter for customers – especially if they are drawing a blank. Thanks to thumbprint payment authentication, remembering passwords are becoming a thing of the past. In 2018 financial institutions will look to extend this security offering to facial recognition, retina scans and voice prints. Increased investments in biometrics will not only make transactions more secure, but elevate customer experience.
- Next Gen Chatbots: Over the past couple of years the popularity of Chatbots for customer service has increased. Major banks across the world have adopted this technology to streamline information and facilitate transactions. This year interactions with bots will get better, almost human-like, leading to the use of Chatbots as personal financial assistants.
In a very competitive landscape, customer relationships remains the single biggest challenge to growth. In 2018, the impetus on digital transformation to improve customer experience will be energy, and money, well spent and will no doubt yield favourable results.