Digital banking technologies, which encompass artificial intelligence (AI), analytics, personal financial management software, internet of things (IoT), and voice banking, are essentially converging towards one goal: invisible banking. Essentially, invisible banking is banking that people need not to think about as it does not manifest physically. However, it will persist to exist behind the scenes of every transaction.
As of now, digital banking is already embedded in our daily activities. Its presence will only grow stronger and unnoticeable within the next few years, as technological disruptions will continue to rise within the financial services industry. This will further urge banks to always adopt a high-tech mindset in keeping up with the new innovations, while at the same time implementing forward-thinking strategies at its very core.
However, simply staying updated on the current technological innovations will not be enough. In order to be at the forefront of the technological curve, banks need to accurately predict the future technologies that will erupt within the industry and prepare themselves accordingly. Below are the top 5 most anticipated techs of digital banking in 2023.
1. New forms of biometric authentication
Biometrics authentication guarantees a stronger protection and security for banking customers, as passwords and PINs are easily stolen and forgotten. Though the innovation starts with the fingerprint ID, biometrics authentication is now evolving into something more complicated and intricate in nature.
For one, many renowned banks have already utilized facial recognition to confirm the customers’ identities as part of their online transactions and customer onboarding process. This ensures contactless payments to become all the more frictionless, and ease new users to create accounts without having the need to visit the bank branch.
- Palm-based authentication
Palm print is also gaining attention within the financial services industry. As it relies on vein patterns and is not apparent to the naked eye, palm-based identification is more secure than fingerprint scan. Being one of the pioneers of this technology, Amazon had already started implementing palm ID-based payment system in their Seattle stores since 2020, allowing consumers to pay by hovering their hand in mid-air.
- Voice-enabled banking
The emergence of voice banking is solid proof that biometrics authentication is rapidly expanding. Apart from being identifiable due to each individual’s unique voice, voice banking is extremely helpful for certain day-to-day situations that requires quick, handless ways to perform online payments (such as while driving). Few banks have already explored this possibility, as they collaborated with platforms such as Siri and Alexa to assist their consumers in conducting transactions via voice. Though it gives the freedom for consumers to issue payment by voice command, this method is also protected using Touch ID or face recognition, which doubles its security.
2. Intelligent Digital Assistants
Intelligent digital assistants (IDAs) are a form of conversational AI technology that is highly elevated as it leverages on natural language understanding (NLU) to understand and address customer needs. The functions to guide each bank consumer’s financial journey by offering valuable insights. As the industry rapidly expands, many banks and financial services (FIs) alike will implement this approach as it can increase the quality of customer engagement.
IDAs can be leveraged by banks as one of the most holistic approaches to omni-channel customer interactions. Instead of functioning as a regular chatbox, IDAs act as a financial expert; engaging with customers as they draw upon from an extensive library of financial knowledge, hence being able to provide them with personalized suggestions and information across multiple systems. Not only does this technology guarantee a consistent customer experience, it also allows bank employees to spend their time handling a much more complex requests and issues.
3. The explosion of Internet of Things (IoT)
The internet of things (IoT) has been regarded as the next tech breakthrough in financial services. As IoT consists of inter-connected devices that collect and transmit data, it allows banks to optimize their operations and minimize costs. The market for the IoT devices is expected to reach 27 billion by 2025, with an estimated growth rate of 18%.
The usage of IoT has been very prevalent in smart wallets, which has expanded to wearables that can conduct transactions. Recent innovations had allowed consumers to use fitness trackers, smart watches, wristbands and jewelry in performing their day-to-day purchases as these items can access their credit cards or checking accounts from anywhere.
IoT equip these devices to collect data and make adjustments to certain features based on the individual’s purchasing habits, enabling banking and money movement to become more seamless. As wearables continue to gain more attention, it is expected that payments will move away from cards and phones in 2023, though not replacing them entirely.
4. The surge of low code, no code platforms
Following the surge of super apps, it is anticipated that there will be a significant increase in the deployment of low-code, no-code platforms in near time. Such platforms effectively assist banks and financial institutions (FIs) alike to build apps without the need to have formal training in coding. This signifies a considerable shift in how FIs can adapt and cultivate innovation within their organizations.
Low-code, no-code applications can benefit banks more than simply automating routine tasks. They can also be leveraged as a tool for banks to respond to marketplace opportunities swiftly due to its iterative nature. These applications are constantly developed and refined, while also helping banks to maintain innovativeness without requiring them to employ skilled coders.
Anticipate future techs with INFOPRO – your best partner in digital banking solutions
Needless to say, preparing and investing in future technologies is imperative for banks to not only stay afloat, but stand apart from their competitors. It is also essential to integrate these upcoming innovations with the underlying needs of the bank in order to upgrade the organization’s processes intelligently.
INFOPRO is here to help you transform your bank and elevate it to new levels. Our panel of experts is more than ready to help you in planning, strategizing and managing your bank’s digital assets, making sure it is in a toptier condition in bracing for future technological disruptions.
To find out more on our vast selections of customized products and solutions, contact us today for a free consultation.