Financial technology continues to transform the way consumers do business, banks operate and features are introduced. There are certain technologies that will completely change the way money is handled and how data is shared:
ATMs continue to introduce new features into the market. Intelligent deposits — where an envelope or pen is not needed — are very popular, and the addition of bill-pay by ATMs is still continuing to catch on. Even with these types of technological advancements already in the market, there's a new wave of ATM technology on the horizon being introduced that will support contactless payments — including ATM transactions by smartphone, GPS tracking, biometric authentication and iris recognition — to help in preventing hacks.
Blockchain helps decentralize financial management from one authority to an entire network of computers. This technology has the potential to be safer and improve certain areas of banking. When fully implemented, it will change the landscape of the banking industry as we know it.
In a 2017 interview with Bloomberg TV, Vikram Pandit, former head of Citigroup, Inc, said that up to 30 percent of banking jobs could be eliminated within the next five years. With machine learning and cloud computing automating operations, this is no longer an estimation and may soon become a reality.
More Online-Store Experiences
Although some people may prefer visiting an in-store branch, the future banking experience may become one of an online store. Customers are quickly migrating to banking apps and ATMs that allow basic banking transactions. The future of banking may involve kiosks where customers can handle in-store transactions, reserving one-on-one interactions for special needs and requests.
Technology has given banks an opportunity to deliver faster experiences that have the transparency customers want. Financial service providers that are not regulated to the finance industry have the potential to grow, as they can devote a higher percentage of their assets to employing technology that offers innovative solutions on a larger scale than traditional banks.
Fintech banks are coming at a rapid pace. Regulators have accepted applications for national bank charters from financial technology startups that will completely change the landscape of traditional banking. As it stands, a few fintech banks are offering checking and savings accounts, overdraft protection and direct deposit, with more financial technology companies on the way.
Digital and Mobile Banking
Banks are heavily investing in digital-banking technology, with artificial-intelligence solutions leading the way. Customer engagement continues to grow as financial institutions employ the use of chatbots and other new innovative methods to deliver services.
Wearables are also a new advancement that will integrate the banking experience. Banks may start using Bluetooth beacons to greet customers on their smartwatches as they enter a location, and bank tellers may very well start wearing smart glasses to process customer banking information. Using smart devices on a wider scale can also enhance convenience and build loyalty.
The best part? Most of these new technologies integrate the use of ATMs.