2020 has arrived and we are sharing some of the biggest technology trends that will disrupt banking. Check out some of the advancements below that are sure to bring some new changes to the banking industry. Read below to find out more!
There has never been a more exciting time in the banking industry. As technology’s onward rush continues nonstop it provides institutions with opportunities that expand well beyond traditional financial services. More than expanding the services offered, financial institutions will be able to process data and engage with consumers faster than ever, as the rollout of 5G networks becomes a reality.
These superfast networks will provide the opportunity to instantaneously and intelligently meet any consumer need, at any time, on any channel. Achieving this will require new computing and storage strategies, advanced analytics, enhanced cybersecurity capabilities and a brand new perspective on how banking services can be delivered.
What are the technologies which hold the greatest 4th industrial revolution potential? Nothing is for certain, but the technological trends below certainly should be watched closely. These are in no particular order since each organization will be different as to the prioritization and investment allocation. That said, the opportunities are greater than ever … but so is the risk of inaction.
From Public and Private Cloud to Distributed Cloud
It seems like just yesterday that banks and credit unions began to rely on cloud computing to handle increasing loads of data. Formerly a technology trend to watch, cloud computing has become mainstream, with major players AWS (Amazon Web Services), Microsoft Azure and Google Cloud dominating the market.
The adoption of cloud computing is still growing, as more financial institutions migrate to a cloud solution. But it’s no longer the emerging technology. By 2022, 75% of enterprise data will be created and processed outside the centralized data center or cloud, according to Gartner. This represents an increase of less than 10% generated today.
Compared to a public cloud, that is owned and operated by a third-party cloud service provider, a distributed cloud provides public cloud services to external locations, with the original provider still being responsible for cloud service architecture, delivery, operations, and updates.
This provides financial institutions greater flexibility, more deployment options, and better optimization for infrastructure, security, and compliance. It also reduces the risk of network-related outages.
Autonomous Ride Impact on Engagement and Financial Services
We all are aware of the futuristic autonomous car that can take a person anywhere with less and less personal involvement. In reality, many of us may never have this experience in our self-driving car. The future will more likely involve a scenario where you will no longer need to own your car at all.
The reality is that an automobile is one of the most expensive purchases a person ever makes beyond owning a home. Despite this significant investment, the car spends an overwhelming percentage of its time sitting in a driveway, parking lot or garage not being used.
In the future, ride-sharing may be the future of transport for the vast majority of individuals in urban and suburban areas. And most of these cars may be community-owned, or per-ride leased autonomous vehicles.
So, what does this have to do with financial services? First, it can be assumed that the number of auto loans will continue to decrease as a percentage of a bank or credit union portfolio. We are already seeing this, with many Millennials already opting for an Uber ride as opposed to using their funds in their car.
More importantly, drivers (or passengers) of the future will find themselves with a great deal of free time in-car. Rather than focusing on driving, time can be spent on working, being entertained, banking or just relaxing. Automobile companies are already developing systems that can take advantage of the increased free time. Other industries are also realizing that immersive technology offers a huge opportunity to turn a car into an engagement opportunity.