Latest Tech Advancements In Online Banking: What Is Changing In The Industry?
Thanks to technology we now have online banking, which has revolutionized how we handle our assets. We live in a global economy where most of us are doing international transactions every day, and without the convenience of online banking, all of this wouldn’t be possible.
Over the last couple of years, we’ve seen some huge advancements in the finance and banking industry, and all of them are fueled by technological advancements that unlocked many opportunities that weren’t possible before for both businesses and individuals.
Nowadays, you have an online banking app, where you can exchange your money into multiple currencies, pay for things across borders, and have detailed analytics on your transactions, and all of these options are available 24/7.
That’s not all. We also have the introduction of AI, online banking platforms, cybersecurity, and integration of blockchain technology in the world of finance.
This inspired us to go on a search and find out how all the latest technological advancements have impacted the world of online banking.
Artificial Intelligence: The Brain Behind Banking
Artificial Intelligence (AI) is the star player in the modern banking arena. Banks are leveraging AI to enhance customer service, streamline operations, and improve security. Chatbots are getting smarter, thanks to generative AI, which allows them to handle more complex customer queries with a human-like touch. This isn't just about saving time—AI is helping banks reduce operational costs by up to 30% and increase revenue by around 6%.
But wait, what about mistakes? Sure, there's always a risk of AI going rogue, but banks are placing guardrails to ensure these systems are as error-free as possible. Even with these precautions, we might see a few hiccups here and there, which is just part of the tech evolution journey.
The Rise of Neobanks: Banking Without Borders
Neobanks, those digital-only banks without physical branches, are disrupting the traditional banking model. These agile entities offer lower fees, innovative features, and a seamless user experience. They're particularly popular among tech-savvy consumers who prefer managing their finances entirely online.
These digital finance platforms bring many new benefits for people, especially if you travel a lot or do business abroad. Digital-only banks like Genome, also have offers like multicurrency bank accounts, where you can collect and pay with multiple currencies from the same bank account.
These new multi-currency accounts allowed people to have better management of their finances, lower unwanted conversion fees, and make international transactions simpler. In a gig economy, this is the best thing in the world of digital finance, since it allows freelancers, entrepreneurs, and businesses, to collect payments into multiple currencies from the same account and save a ton of money with favorable currency exchange rates.
In 2024, neobanks are expected to expand their market share further, pushing traditional banks to innovate or risk being left behind.
Hyper-Personalization
Imagine a bank that knows you better than you know yourself. Hyper-personalization in banking uses advanced analytics to tailor services and recommendations to individual customer behaviors.
The personalization of apps isn’t something new, but it seems like it is the first time that it entered the world of personal finance. This model of creating an app that evolves around your personality and actions uses the power of machine learning and AI.
This means personalized financial advice, customized user interfaces, and even bespoke investment opportunities. It's like having a financial advisor in your pocket, 24/7.
We are talking about a trend that is just emerging and it is growing quite fast. In the future, we expect online banking apps to be our personal finance experts and give us tips, and suggestions, and tailor the entire app experience to our preferences.
Open Banking and API Integration
Open banking is transforming the way we interact with financial services. By allowing third-party developers to securely access bank data through APIs, open banking fosters a more interconnected financial ecosystem.
By allowing third-party integrations, online banking apps can become much more powerful. They can offer a lot more services, making the entire process more cost-effective, convenient, and simple since it is going through one app.
This integration enables customers to access a myriad of financial services from a single platform, making banking more convenient and comprehensive.
For example, businesses can link their online banking account with accounting software that will do all the heavy lifting and analyze their costs, and profits and present them to the owners in a much more digestible way.
Expect a surge in API-driven innovations that enhance the customer experience in 2024.
Blockchain and Cryptocurrencies: The Future of Transactions
The majority of the banks always had negative views on Blockchain and cryptocurrencies, but it seems like things are changing after banks have realized their benefits.
Blockchain's transparency and security features are being leveraged for faster, more secure cross-border transactions. Additionally, as regulatory frameworks become clearer, more banks are expected to integrate cryptocurrencies into their services. This could revolutionize how we perceive and use money.
Enhanced Cybersecurity
With great power comes great responsibility, and in the world of online banking, that means robust cybersecurity measures. As cyber threats become more sophisticated, banks are investing heavily in advanced technologies to safeguard sensitive financial information. This includes biometric authentication, behavioral analytics, and continuous monitoring to detect and thwart potential cyber threats.