The banking sector has evolved with times. Banks have started to become more customer-centric. They strive hard to meet customer needs and offer them the best experience.
This approach has led to a lot of new technological trends in the banking industry. Banks adopt innovative solutions that help them to meet their objectives. They want to give the best service to customers at low rates. This is possible only with efficient technology.
Some of the latest technological trends in the banking industry are as follows:
- Cash register: With the cash register technology, a customer can withdraw cash from selected retail stores, located near them. The concept is also popularly referred to as Debit card cash back or cash out. The cash given by the retailer is added in the customer’s bill, which he pays through a debit card while buying a product.
- Funds withdrawal without account: Banks allow individuals to withdraw funds from ATMs even if the customer does not hold an account. Different banks have given different names to this banking technology. For instance FNB (First National Bank) calls it eWallet, Standard Bank has named it Instant Money Voucher and Absa bank has termed it as CashSend. Some other banks have adopted cardless cash withdrawal facilities. This lets customers transfer money from their account using a mobile number. The receiver may use an ATM to withdraw money even if he does not have a bank account.
- Mobile banking: This trend has gained a lot of popularity in recent times as more and more people use smartphones and tablets. Customers may conveniently perform a number of financial transactions using their phones. Banks also use this feature to send notifications to customers about transactions.
- Shopping payment app: Banks have also introduced apps to their customers wherein they may pay while buying an item in a shop. They may scan the code on the item using the app. The app deciphers the code and identifies the shop. It then asks for the customer’s card PIN to complete the transaction. The app also sends a notification to the shopkeeper on completion of payment.
- Tap and pay: This banking technology solution is also known as contactless payment. The user only needs to tap the card or device on the universal contactless symbol on the reader to make the payment. A beep and a green light will notify the user about the completion of payment.
- Biometric technology: Fingerprint registration, retina check and voice recognition are some of the techniques used by banks to identify customers. These help customers to make cardless transactions and eliminate the need to carry ID proof while visiting the bank. The biometric technology also helps to curb frauds.
- Data analysis: This system stores and analyzes all of the customer’s data. Based on the study of the data, the business banking software predicts future customer behavior. For instance, after analyzing his income, investment patterns, and payments, it may suggest how much loan amount a customer may ask for in the coming years.
- Digitalization: Banks are embracing digital technology in every form to promote paperless banking. These include the use of scanned documents, soft copies of photographs and digital signatures. Not only documents, some banks also accept digital currency. This currency is known as bitcoins.
Technology has made the job easier for both banks and customers. It offers convenience to both. These newer technologies help the customer to seamlessly perform transactions, often without the need to even visit their banks. Besides, they also help banks to organize the data well and operate smoothly.
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