The Asian banking sector has stepped into a new era with state-of-the-art technologies, considering the emerging needs of customers. Switching over to digital business models from traditional banking has transformed the commercial banking system to enhance operational efficiency, enhance the user experience, and lower costs. This has also enabled the businesses to engage with the banks with ease and streamline their existing operations.
Aftab Ahmed, CEO of Citibank Philippines said that "To remain relevant learn from the past, live in the present with an eye on the future" The banks should identify their challenges and put the right strategy to move along in this contemporary business environment.
Ever since the pandemic hit the world, there have been many protocols that have paved the way for numerous cashless transactions. More importantly, the usage of smart phones has surged in Asia and other continents after the pandemic, and people make use of the phones the most for all sorts of financial dealings and approach banks only if it is required. This shift has happened after major fintech companies launched in the market and integrated with major banks for the sake of seamless payments. This has helped the customers make the payment with ease and has not only revolutionized the banking industry but also the organizations that deal with heaps of payments.
On the other hand, quick and easy modes of transactions have also helped the firms make more profit as they can deal with more customers in less time, which also leads to customer satisfaction.
The conditions are not as old as before; this is an era where millions of transactions are carried out per day, and it is highly likely that the information may get leaked and even utilized for fraudulent activities. To refrain from all these, it is vital to have strong cyber security measures to mitigate the risk and secure the dealings. From the bank's point of view, maintaining trust with the customer is of paramount importance, and they have to allocate a massive budget on account of cyber security.
Furthermore, banks are concerned about the security measures, and to stay protected from cyber-attacks, they have installed Biometric systems on the premises, encryption facilities, and even threat intelligence systems to safeguard user data.
The work load has reduced for the bankers after the integration of AI, and they are effectively clarifying the queries of customers through chatbots. It provides a quick answer, which leads to a better customer experience. Generally, customers contact the bank or even call customer care for various concerns. However, it is a waste of time going there or waiting on the call queue and getting disconnected for several reasons. Additionally, AI is used for detecting fraud and assessing the risk, which enables banks to recognize suspicious activities.
AI these days can assist customers in the processing of account openings and loan applications without even approaching the bank for details. The traditional way is always time-consuming and would require more visits to complete the formalities. In this digitalized world, AI has become the user's best companion, serving their needs.
With the volume of data increasing, accumulating it on the local system is risky and may result in compromise. Currently, the banks have adopted cloud-based technology, which enables them to accumulate and process data on remote servers instead of the bank system. As a result of this, the banking system has become more efficient, secure, and cost-effective. Data retrieval on demand is instantaneous.
More importantly, this technology has also opened the way for better customer relationship management. Customers can finish off all their tasks with less time and no further complications involved.
Due to the advancement of technology, the banks have also integrated with several third-party providers so that customers can avail themselves of a plethora of services. The open banking initiatives have made the customers data secure through standardized Application Programming Interfaces (APIs) and enabled them to initiate transactions with ease. It is very convenient, as all the products and services can be accessed on a single platform instead of seeking out multiple banks, saving time and effort. Then the choice can be made easily, and they may get the best deal that suits their financial needs.
Users can also enjoy services from third parties that the bank doesn't offer. For example, they provide mobile banking apps with a digital wallet, p2p transactions, chat bots, and many more features. These sorts of innovations can increase the user experience and make it more accessible.
All in all, these technologies play a significant role in revolutionizing the commercial banking space and serving the needs of customers in the best possible way.
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