How IT is changing the banking sector: a list of new trends

The banking sector is one of the spheres heavily influenced by IT. To a large extent, financial services trends depend on the possibilities of modern technologies. Banking technology and IT go hand in hand to ensure a smooth and seamless banking experience for users in any part of the world. 

Genome is a financial services provider that boasts the implementation of mobile technology in banking. Our mobile and web applications for personal, business and merchant accounts were created using the latest banking technologies. In today’s blog post, we will discuss the future of banking and the growing trends. 

Future of banking: new trends 

Let’s get straight to business and look through the dominant trends in the financial sphere to understand how they can modify the future of banking already in the near time.

Digitalization

This phenomenon is not something new or unknown anymore. However, the lockdowns and shift to remote working also made their immense contribution to the faster and more intensive digitalization of the financial industry. Digitalization does not only mean using digital wallets instead of cash. You can also open bank accounts on the Internet without leaving the house, transfer money online in Europe or the USA, and even download your bank statements anytime, anywhere. All these operations are now possible online without needing to visit physical branches. 

Mobile technology in banking

To put it simply, it’s a technology that allows people to use all the necessary financial services on the Internet, no matter whether they are. The best example of mobile technology in banking is the use of banking applications on smart devices, such as smartphones and tablets. 

Apart from managing digital wallets and transferring money online on your smartphone, mobile technology also enables contactless payments. On top of this, one can even exchange currencies (GBP, USD, EUR) or close their bank account under the condition that they have access to the Internet. All these improvements make our banking experience more efficient, effortless, and, without a doubt, much faster.

Cryptocurrency adoption

Crypto trading will be a hot trend itself for at least the next few years. No wonder the largest fintechs are making crypto digital wallets a part of their financial ecosystem. Cryptocurrency trading is now available right in your bank account with your provider and is very likely to become a solid foundation of the future of banking. The other side of this trend is the lack of crypto adoption and regulations. This factor makes it challenging to transfer money online in crypto coins and send crypto payments. 

AI

AI-powered chatbots have become more and more common for customer support services in the banking sector, especially among large fintech companies. Because of the high number of clients contacting banks online, it’s often impossible to process all the requests in time. And here’s when AI does not only lend a helping hand but even saves the day. AI chatbots send replies within seconds and can often help resolve your issue or find an answer to your question if it’s not something difficult. AI implementation in the financial industry increases customer satisfaction and reduces clients’ waiting time.

Security

With the high speed of globalization, financial services need to be safe for all user categories. Banking has migrated to an online space, and it’s crucial to protect customers’ data and finances from any threats and fraudsters operating on the Internet. That is why such procedures and technologies as KYC (Know Your Customer) verifications, 2FA (two-factor authentication), 3D security, tokenization for Apple Wallet and Google Pay, etc. Crypto transactions also require special IT in place to protect both the coins and digital wallets from theft. 

With Genome, you can be sure that your all-in-one finance app operates due to the latest IT and has a few layers of protection. Apart from 2FA and KYC checks for our personal users, we’ve recently introduced the Genome token for our business users. This is a small portable device for authorization of all the outgoing business transactions from your account. Click here to find out more about how to transfer money online from your business wallet securely.

FAQ

What are the new trends in banking?

Some of the hottest but also lasting financial services trends are crypto adoption, digitalization, and online/mobile technology in banking. The future of banking is already here, with the majority of providers adopting these trends for the best possible banking experience for all users.

What are the changes in the banking sector?

This sphere is closely connected with what’s going on in the world. The banking sector is adapting according to the changes in world politics, the economy, and even the technological industry. For instance, during the past few years, one of the biggest financial services trends has been digitalization. Because of the global pandemic, the majority of banks had to shift to working online with clients instead of using physical branches. One more change is the focus on contactless payments because they’re fast, simple, and effortless. IT also plays a huge role in the future of banking by providing new possibilities and functions for both providers and users.

How is technology changing the banking industry?

IT does not only help to make new and advanced banking services a reality but also shapes the trends in the financial sphere. NFC payments, for example, only came to life because of technological progress. At the same time, they became a huge trend, and nowadays, no bank and smart devices manufacturer offers their goods and services without adopting the NFC technology.

What have been the recent banking trends in India?

India is no different from the rest of the world when it comes to the future of banking. The biggest financial services trends one can notice are digitalization, adoption of cryptocurrencies and mobile technologies in banking, as well as usage of AI in communication with clients.