40% of Americans — that’s how many rely on digital banking to manage their bank accounts. What’s more, over a quarter of U.S. consumers access their accounts using their mobile devices.
After all, online banking delivers a level of convenience that physical banking cannot. For starters, it lets consumers avoid queues, check balances real-time, and pay bills on the go. They can do almost anything with their account — even if they’re out of the country.
But finance companies know that consumers will always want more convenience and safety features. For that, they need to implement technologies that will define finance in the years to come.
So, what are these innovations we can expect from the finance sector this 2019? Let’s take a closer look at five of them.
1. Artificial Intelligence: A Top Trend That Will Define Finance This 2019
Over a third of consumers believe that artificial intelligence will boost customer service.
That said, the finance sector is likely to be one of this year’s biggest AI users. For one, AI in online banking can be in the form of a personal financial concierge. Users can use their “concierge” for banking to help them track spending and savings.
2. … And Chatbots for Customer Service
Chatbots are likely to become an integral part of this year’s banking innovations too. Rather than going through a bank’s FAQ, they can instead “chat” with a bot to ask questions.
This is just one example, but the point is, effective chatbots can help simplify banking. It can help reduce the loads placed on banks’ customer support and service teams.
3. Upgraded ATM Transactions and Payments
Take buy now pay later electronics as an example. Banks can work with physical and online stores to make deferred payments available. With this option, installment payments will be automatically taken from the linked account.
Implementing this will reduce the need to withdraw a large amount of money to pay for purchases. As for online purchases, shoppers can worry less about running out of funds. They can avoid overdraft fees, which by the way, cost Americans $34 billion in 2017.
4. Digital-Only Banks
Almost everything that we can buy in physical stores is now also offered online. But did you know that there are actually some banks that have gone purely digital?
That’s right. Digital-only banks provide all their facilities online and through digital platforms. One can only access their products and services through Internet-connected devices.
These institutions appeal to consumers because of their lower costs. Since these banks don’t have to pay for physical space, then they can cut their overhead expenses. This then allows them to bring more affordable services to consumers.
With most people looking for ways to cut their own costs, the demand for these digital-only banks is sure to rise.
5. Enhanced Cybersecurity
All these innovations in online banking pose a greater need for better cybersecurity. This year, banks are likely to implement digital signatures and biometrics. They may also enact multi-factor authentication for more rigorous data protection.
Customer, Convenience, and Certainty: The 3 Cs That Will Shape the World of Finance
As you can see, these innovations that will define finance this year are all about customers. Their convenience and the certainty that their money is safe from threats. Financial institutions that will focus on these 3 Cs will be a step ahead of the competition.
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