When people are in crisis, they invent new strategies to get out of it. A similar picture has been seen in the ongoing pandemic.
Governments and other institutions across the world are now trying to cope with the Covid-19 pandemic. As a result, many new things have started to be introduced in almost all types of organizations, big and small.
According to the multinational service company ‘Accenture’, the far-reaching effects of this pandemic have also reached the banking sector. As a result, there is a change in many ideas that people have about banking. Due to this, there has been some change in the habits and behavior of all concerned, starting from bank employees and customers.
Accenture has released a research report titled ‘Banking Technology Vision 2020’. According to the report, many financial institutions, including banks, have seen many changes in a matter of months that were expected to take years.
Due to the changing circumstances, those changes and innovations have come to the fore very quickly. Things like working from home, contactless payment methods or conducting activities online will remain popular even after the pandemic. That is, long-term planning for the future while meeting the needs of the present is now a big challenge for all types of economic institutions.
However, the number of newly invented technologies that have changed consumer expectations and behavior as a result of this pandemic is not much. Rather, in this time of crisis, the expected changes have been implemented in a very short period of time.
A total of 670 executive members of banking institutions around the world were surveyed for the research carried out by Accenture before the publication of the report. According to the survey, 4 trends started in the technology sector as a result of the pandemic are going to have a permanent impact on the banking system in the coming days. Let’s know about these trends one by one.
1.Treat customers as partners.
Banking institutions generally keep many aspects under their control in serving their customers. According to the research report, in the field of banking, there is a trend of personalizing products to provide services according to the convenience and preferences of each customer, but the customers are not informed much about it. As a result, customers do not have much control in their own hands. However, to personalize the product or service, it is necessary to do the opposite. Personalization requires massively increased customer engagement.
Most of the bank officials who participated in the survey agreed on increasing customer participation. According to 86 percent of executives, considering the customer experience is important when it comes to personalization. Again, 83 percent of the officers who participated in the survey felt that all banks should consider their customers as partners in this digital era.
According to Alan McIntyre, senior managing director at Accenture, banks should do two things for successful personalization.
One is to help customers make product choices by informing them of the information they receive from them. And secondly, keeping open the opportunity for customers to customize their products within the conditions set by the banking institutions.
2. Potential Of Human and Artificial Intelligence (AI) working together in banking sector.
Recently, many banking institutions are using artificial intelligence technology to make their various tasks easier. AI is being used in various areas such as credit risk modeling, chatbots for customer interaction or fraud detection. Influential executives in the banking sector are constantly coming up with new plans to combine human tasks with artificial intelligence or AI technology. They see AI technology as a potential for change.
Among the participants in the survey, 17 percent of the officials said that their organizations are already working with the help of AI or artificial intelligence technology. 29 percent said that they will use AI technology in their organizations within the next year.
3. Taking action to transform the customer experience.
According to a Bank of America executive, in just 8 months in 2020, the bank made more than 800 changes to their mobile application. Other leading banks of the world are not behind in this regard. 77 percent of the officials who participated in the survey said that the products or services they provide on the digital platform will be updated at a significant rate within the next 3 years. And according to 71 percent, their customers don’t complain when new software updates arrive. Rather, many consider the update to be positive.
4. Always bringing new innovations.
All new discoveries and inventions become obsolete at some point. Therefore, there is no alternative to sustaining the pace of innovation and discovery in the technology sector as a result of the pandemic. According to the report, two factors are important to sustain this trend.
First, the focus should be on building cloud-based applications. And secondly, the 4 most promising technologies should be fully utilized in the banking sector. These 4 technologies together are called DARQ. The term DARQ is used to refer to distributed laser, AI, extended reality and quantum computing technologies together.
All the 4 trends discussed will control the course of the banking system in the post-pandemic period. Which of these trends do you think will have the most impact on the banking system of this country?