Organizations plan on spending a huge $623 billion on banking technology products and services in 2022.
In this continuously evolving consumer world, it is inevitable for banks to embrace IT modernization to live up to the constantly increasing customer expectations and keep up with market trends.
Chief Digital Officers (CDOs) act as a catalyst for your bank’s modernization journey, transforming your financial organization to digitally meet consumer needs, fine-tune digital processes and accelerate digital growth on a broader level.
This blog talks about why and how banks around the globe are leveraging modernization.
The ‘How’ of Banking Modernization
Banks can digitally transform with the help of cutting-edge technologies these days. Some of these include Generative Artificial Intelligence (AI), Machine Learning and Cloud Banking.
AI helps banks provide 24/7 agile customer service with minimum downtime. Moreover, AI’s usefulness is not just restricted to digital banking since it also helps banking organizations to reduce the amount of risk involved in financial processes.
AI performs risk assessment and resolution by distinguishing potential fraud patterns and unusual transactions from the normal transactional behaviors of customers. Experts quote that by 2023, banks can save nearly $447 billion with help of AI-assisted service.
Additionally, a Customer Relationship Management (CRM) system acts as a unified solution for the bank by bringing employee and customer data to a single point of access. It also takes into account the activities, interests, and behaviors of customers in order for the bank to provide better-personalized services.
Banking technologies in action
Robotic Process Automation
RPA can enable your bank to raise its productivity and efficiency by engaging customers in real-time and utilizing the numerous benefits of robotic software. It does so by using automation technologies to replace repetitive tasks traditionally performed by bank workers manually.
Open Banking
Open Banking uses third party software to create a single interface for your customers to acquire access to your bank’s services. Digital payment gateways used by different applications is one fine example of open banking.
Blockchain
Blockchain can help your bank by improving its efficiency, enhancing security, and enabling faster transactions with lower costs. Experts at PwC predict that by 2022 banks can save up to $15-20 billion with blockchain-powered technology.
How do banks plan on serving digital customers?
Banks plan to serve their customers by adopting the digital shift. By adopting digital best practices customers can make on-the-go transactions, pay bills, view account details, and even apply for loans while sitting in any corner of the world. With digital banking in the palm of your hands, banks are creating value for consumers with around-the-clock personalized services.
Your way to a digital future
The question of modernization for banks now isn’t ‘when’ but rather ‘how’. Banking modernization has become inevitable. If IT Modernization is done right then it can warrant benefits such as personalized customer service, increased operational efficiency and flexibility, reduced risk, and faster speed.
Is your bank looking to start its modernization journey? Systems Arabia can facilitate you with its cutting-edge technology for your bank. Contact us today.