Focus on mobile apps
Almost all banks have apps today. The customer can check account balance, transfer funds, pay bills & do much more with just a swipe. Long queues in front of bank counters might soon become a thing of the past.
UPI is the new norm
The United Payment Interface (UPI) launched by the National Payments Corporation of India (NPCI) has made instant fund transfer a reality in India. Almost every bank has incorporated this payment system in their services. The whole system works on a phone which means the user just needs a smartphone or feature phone to transfer money to another user.
Migration to cloud
Many leading banks have been quick to adopt cloud and others are following the suit. Business models of new banks and FinTech start-ups are based on the cloud-first strategy. Post-demonetization when India is progressing towards becoming a digital economy, the cloud will provide banks with the required flexibility to adapt to the new demands of the new system.
Use of blockchain technology
Banks have realized that blockchain technology can enable them to meet the changing demands of customers. The partnership between Emirates NBD and ICICI Bank to launch a blockchain pilot network for trade finance & international remittances is an example of this new outlook.
Increased deployment of AI
To make both front-end and back-end processes simpler and less time-consuming, banks in India have started using AI in their operations. While intelligent digital assistants are now pretty common, some banks have also started deploying software robots to improve their functioning.
The government’s focus on digitization of the banking sector and emergence of new technologies have brought about a digital revolution in the banking sector. We can expect to see even greater changes in the near future, including
These banks will provide services only through tablets, mobile, and online. In India, it will be linked to the Aadhar infrastructure.
Use of biometric technology to identify a customer is fast becoming a reality. It does away with the need of password and OTP to establish the identity of the user.
Personalized services through AI
AI can provide quick and customized services to customers leading to greater customer satisfaction & loyalty.
Increased use of robotics
At present, Indian banks have deployed robots to answer customer queries related to banking transactions, demat account, etc. But it’s expected to take over areas that require minimal human judgment.
Augmented Reality (AR) in banking
Banks will embrace AR to improve customer engagement. In fact, one Indian bank has already introduced AR in its mobile application to provide ATM & branch location, shopping destinations, & other information.
The banking industry is on the threshold of a tremendous change brought about by digitization and other tech initiatives. Some changes have arrived, some are yet to come. Overall, it appears that the BFSI sector is all set for an exciting future.