General

The Influence of Technology on the Banking and Financial Sectors

In a world driven by technology and its ability to safeguard or improve every aspect of our lives, it’s application towards the delicate and high-risk banking and financial sectors shows our large reliance on it.

Each year, a new buzzword, such as PPI, relates to some form of technology which is revolutionising the sectors and improving our reliability or investments.

When the banking and financial industry started introducing technology, it completely changed the sectors approach to business. The integration of technology started leading to fundamental changes in how businesses operate and deliver value to its customers.

Running banks on digital technology meant they can see reduced costs and streamlined processes. These integrations helped with an engaging customer experience while making room for even further business improvement.

Here are some of the biggest influences of technology expected to be introduced into the UK banking and financial sectors.

1 . Fraud detection.

The responsibility of investigating and identifying any fraudulent activity or transaction lies with specialist technology and highly trained staff. This might involve looking through information and deciding if there was actually any fraudulent activity in the investigated account.

The introduction of a new technology incorporated into the banking sector – AI (Artificial Intelligence) – is evolving beyond the capabilities of the people that designed it.

AI being incorporated into banks will mean that they can investigate and detect any fraudulent activity fairly effortlessly. These machines have the capability to track through all of the victims banking history and detect the likelihood of any fraud based on previous patterns. In addition, these processes happen much faster than when completed by humans, offering big benefits to the banks, they will no longer need numerous fraud investigators.

2 . Customer service.

Good customer service for clients is vitally important for all companies. It’s crucial to have professionally trained staff that are capable of handling anything involved with money or financial matters, and mostly be able to give the support required to the customers.

New ChatBots are being incorporated to enhance the experience and offer great accessibility. The increase in businesses utilising these ChatBots has developed from more customers becoming accustomed to interacting with them. These ChatBots are constantly evolving, learning, and getting smarter to help everyone on their matters quicker and showing more reliability for the customer.

3 . Blockchain.

Blockchain has been regarded as a revolutionary aspect to the sector. The technology allows digital information to be distributed but never copied and although it was originally designed for digital currencies, it has been found useful for many different things.

Blockchain is a mechanism that helps customers to avoid missed transactions, human or machine errors and even an exchange that was done without any constant involved.

Blockchain guarantees all the validity of any transactions, recording all data not only on the main register but a connected distributed system of registers that are always connected through a secure validation mechanism.

4 . Online banking

Banking had been something that involved visiting a bank to manage your own money. Luckily, today’s technology has allowed banks to introduce online solutions for a great customer experience and convenience. Online banking is getting more popular (approximately 69% of the UK is using online banking), sophisticated and easier to use on a daily basis, money transfers, finances, pay bills or debts, purchases all with the use of a simple button on your mobile phone.