What Does Technology Evolution Mean for the Banking Industry

The increase in technology means convenience and reduction of paper. As tech evolves, there is an app for everything. One of the most seamless ways to transfer and interact with our money is through banking apps and other easy-to-use technologies. Technology means quicker transactions in all industries, but this has been taken advantage of quickly in the banking industry.  There are many facets of mobile banking such as apps, security, tellers and potential automation of financial advisors.

Many banks will be forced to open their data via a set of open APIs. This will make it easier for third parties to access transaction data from customers (with their permission of course).

Data being opened allows developers to view transaction history and other banking interactions when users are applying for a mortgage or other money-related inquiries. This open banking may seem like it is allowing for room for banking to be hacked or more accessible, but that isn’t the case. Open banking allows for more transparent banking that can be tracked easier and encrypted in the online banking sources.

There are many startups and innovative banks looking into the concept of open banking and this is something to think about when considering the future of your money.

With the development of the tech industry, there is progress in artificial intelligence and the idea of robots. This is applicable across all industries including banking. The future might hold robot assistants. Google already has developed a function that works as an assistant. The product isn’t 100% seamless, but tech is getting closer and closer to robots that are indistinguishable from humans. When these robots are used widely, there is also a future in robot advisors in the banking industry. Robots, in theory, may be able to be programmed to know more about banking than some individual. What is stopping us from allowing these potential future robots to be our financial advisors and even bank tellers? There is room for automation of many aspects of the banking process. Moving forward, you can expect rapid changes in services offered online and without actual human contact.

There are apps already where we can take pictures of checks to deposit them. Almost every bank has an app or website that is as functional as going to see a teller. Eventually, there will be apps for all of the banking transactions.

There are apps for investing at all levels of income. Apps such as Acorns round up to the nearest dollar and invest change. This is an easy way for young millennials to start investing early and learn the ropes.

Apps such as Venmo are revolutionizing the way we transfer money and reducing the time we spend using ATMs. These apps are even changing how we use cash and even have cash. Venmo is smoother to use and not as much of an inconvenience as fishing through a wallet to collect money. These apps also keep money safe; you can’t drop or misplace money that is online! Many people rarely have cash due to innovative apps like these that are running the banking industry. 

Cybersecurity is everyone’s business, according to the Huffington Post. This increase in use of everything online means there is room for hackers to have the potential to access more information. It isn’t that information is less safe online than it is in traditional senses, but there are ways to make sure your banking information is maximally secure.

Many companies recommend using a password manager so that your passwords can vary, which is one of the main ways to keep outsiders from accessing any information you store online such as banking information. It also is important to use a VPN when accessing important information on your laptop. VPNs are widely recommended by tech companies because they allow for extra online protection.

The future will hold be a “store” feel when going into a bank. There will be representatives to answer questions and set up potential systems, but there won’t be the lines or having to go to a teller for every single banking transaction. Think of the future of in-bank experiences as more of an Apple store style experience.

The future of banks means more technology integration and a more transparent experience. This decision of “where to bank” will become easier for customers because everything will be able to be previewed online with “trials.”

With all of this being said, the technology industry is bleeding into other industries and altering the ways that we interact with money, each other and in nearly all transactions. There is room for innovation, progress and safer banking in the future.

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