Banks have historically been resistant to disruption by technology because of its unique business model. Banks have built robust businesses with different departments that have different expertise, like retail banking, credit underwriting, commercial lending, and construction. Today we see that changing as technology is becoming ever more important in the financial sector due to competition from fintech firms and increased customer expectations. In this article, we will take a look at some of the top tech trends in finance and banking.
Voice Command Banking
Hands-free smart assistants like Alexa and Google Home have given consumers the ability to order pizza with only a simple voice command. Soon enough customers will be able to use voice commands to do simple banking tasks such as paying bills, transferring money, and setting up alerts. With 61% of women and 48% of men having the same bank for a decade or so longer, having the ability to use voice commands can be a key selling point in delivering a customer experience that retains customers.
Digital-Only Banking
Today there are around 136 million digital natives in the US (Millenials and Gen Z). These digital natives are more open to on-demand consumer services than ever before. A recent survey stated that, “...Millennials are far more interested in using mobile apps and websites to access financial services [than older generations], with 72.4 percent saying it is "very” or “extremely" important to be able to do so via mobile apps.” As more consumers are fulfilling their banking needs on mobile devices, more and more banks are focusing on creating digital-only banking with smartphone apps. So how can banks find success with digital-only banking? Jason Alexander, head of digital platforms at JPMorgan Chase, told PYMNTS in a recent interview. “When we start thinking about mobile now, we have to really understand the customer, what they’re trying to do, how to make a broad set of functionality available to people in what’s still a relatively small form factor and [user interface].”
