How Technology Changes Banking

banking concept

Banking is such an essential service nowadays that about 90% of the overall US population (300 million people) have a bank account. Many Americans rely on this particular service to manage their money and use it to prepare for their future. Many more depend on it for daily transactions such as purchasing and selling items. Banking continues to be a reliable service to many Americans, and it is one of the many industries that evolve every day to cater to its clients. Here are some technological improvements that are evolving the way people bank in the US.

Online Banking

Let’s start with one of the best technological improvements in banking: online banking. Online banking is an accumulation of multiple banking services done through the internet. Many of these services include the withdrawal or deposit of funds. Some banks offer investment services through their online banking apps.

Online banking made it possible for many banks to access their client, especially during the pandemic. This accessibility has brought more Americans into banking. However, there are still questions about whether if online banking is as secure as physical banking. Right now, many banks are finding ways to improve their security systems on their online banking apps.

About 71% of those with a bank account in the US have used online banking, while about 40% have accessed banking services through their mobile. This number is expected to grow exponentially as more people create accounts for online banking and more financial companies make their essential services online.

Blockchain

Blockchain is a recently developed technology that has helped us manage our online data better. At its core, blockchain tech is an online database that uses ‘blocks’ to store our data on the internet. It is a secure database by which multiple people or organizations can access this particular data, given that its owner has given them access. Since its decentralized, people can manage and use its data in real-time for decision-making.

Ultimately, blockchain has made it possible to secure our transactions in banks better. It has also made managing commercial bank accounts much easier. For example, if your company has multiple branches, you can now manage the funds of each branch through blockchain. Each branch manager can also identify and manage individual bank accounts for each branch in real-time to make informed decisions that will help them in the future. Currently, not all banks are using blockchain technology as it is a recently developed tech, but it’s expected that most banks in the US will be using it by 2022.

Artificial Intelligence

technology

Artificial intelligence (AI) has been improving our lives since the moment it was invented back in the 1950s. The idea of a computer program learning various programs and processes was just too much to pass on, especially in banking. Currently, AI is being utilized in various ways. One of them is through chatbots.

Chatbots

Chatbots are becoming one of the most robust technologies this year. More and more companies are investing in them as they have realized that chatbots are the future of customer support and online interactions. Some banks have started to implement chatbots into their apps and websites and have experienced a spike in efficiency. Many clients utilize chatbots to keep an eye out for their daily transactions, credit card limits, and conversion points into money.

Chatbots are also used for simple customer service interactions such as giving forms to fill up for opening a new bank account, problems with passwords, and answering frequently-asked-questions. Although it’s impossible that chatbots will replace their real-life counterparts due to some banking transactions being way too complicated for an AI to handle, they are continuously improving every year. They can start doing some of these transactions by themselves.

Online Surveys

Another form of artificial intelligence comes in the form of online surveys. Online surveys have been essential for customer feedback and support ever since it was introduced to many companies. However, analyzing them became such a hassle. Artificial intelligence can now analyze online surveys and give meaningful information back to its owners. The information can then be used to analyze customer needs and wants. It can also be used to improve the overall customer experience with the bank.

These technologies make it more convenient for customers to do their financial needs every day. They have also made it more accessible for consumers worldwide to open their bank accounts and manage them in the comfort of their homes. The new age of banking has come, and you should certainly give it a try.

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