3 Technologies That are Changing Banking as We Know It!

Featured article by Peter McAllister, Marketing Enthusiast and Independent Technology Author

Notoriously the banking systems have struggled to keep up with the sign of the times. As the world becomes more technologically diverse, banks like to stick to traditional systems that will ultimately make them money. However with new regulations coming in banks are being forced into the 21^st century. In this article we take a look at 3 technologies that will change the face of future banks.

Online advisors

Customer’s attitudes towards the banks are changing. No longer will they visit their local branch to meet their bank manager, for a cup of tea and a financial discussion. These days’ people are becoming more independent when it comes to financial research. There has been a huge increase in online advisory tools available to the general public, simple things like online mortgage calculator tools are able to help people make informed decisions without leaving the comfort of their living room.

Asset Management firm and Blackrock’s financial investor Pulse surveyed consumers and actually found that 4 in 10 millennials, with savings or investments, are aware of online financial advisors. This is the highest level of awareness among any of the age groups surveyed.

Blockchain Technologies

A clear sign of the banking system being behind the time is lack of infrastructure and regulatory framework for technologies such as blockchain. Blockchain technology is an independently managed technology, which also facilitates the development of crypto currencies such as Bitcoin.

The benefits of blockchain technology is first ease of use, and secondly security and fraud prevention. An example of blockchain technology being implemented into the banking system is IOTA. IOTA is a crypto currency and a blockchain technology specifically designed for the banking system.

When banks want to transfer foreign currency the process normally is as follows. Native currency will be changed into dollars, which will then be changed into the currency they desire. The problem that lies here is a matter of cost; changing foreign exchange can be a costly venture for the customer and the banks, normally costing a few dollars at a time. However if blockchain technology was implemented into this process, it would look like this:

Native currency would be used when purchasing IOTA, IOTA would then be then used to buy any currency they desired. The process of this takes mere seconds and only costs the bank and user pence instead of pounds/dollars. This is a technology that is very likely to be embraced by banks in the near future.

Biometric Security

Over the last few years’ biometric security technology has rapidly improved, facial recognition technology has already become a standard in day-to-day life.

Banking apps currently use apple facial recognition system to allow users to open their apps using their face, so it won’t be long until we could see this technology being integrated on a global scale. Users would much rather snap a selfie to make payments instead of typing in card details for an online purchase. And with technologies such as finger print recognition being notoriously difficult to break, any bank that doesn’t start looking towards the future, will quickly be left behind and more open to fraud.

About the Author

Peter McAllister is a marketing enthusiast, interested in exploring and researching how to scale businesses and increase their customer reach. He lives in Scotland, UK and can often be found at industry conferences and networking events.