Technology has improved operations, customer services, and functions and streamlined financial transactions in the banking and financial sectors.
Let’s focus on the critical banking tech trends to continue to impact the industry in 2024.
Top Banking Tech Trends for 2024
- Open banking: Open banking will connect more non-banking financial companies (NBFCs) and banks to give customers more access to financial services. Banking APIs will access customer financial data securely without compromising data compliance. Open banking will help customers manage their banking accounts through a single platform and integrate more apps and services. Banking-as-a-service (BaaS) will be on the rise to reach new customers.
- Blockchain Banking: Blockchain will improve transparency and security in all types of transactions. It will initiate transaction automation to enhance trading and streamline operations. Smart contracts will automate financial contracts and allow peer-to-peer (P2P) and cross-border payments. DeFi will be more blockchain-centric to make financial services more accessible at lower costs.
- Banking of Things: The adoption of IoT will be more for collecting data efficiently. This will automate data acquisition to streamline banking processes. For instance, IoT-based digital wallets will be integrated into smartphones to deliver customer-specific data.
- Immersive technologies: Banks will use AR and VR to optimize customer interactions with their banks to deliver personalized and interactive customer experiences. These techs will power the virtual banking system for customers to streamline banking processes.
Also Read: Top Fintech Trends for 2024
5. Banking process automation: In 2024, banks will automate almost all their repetitive tasks through software robots. In addition, RPA-based accounts payable solutions will automate tasks like invoice processing, payment approvals, loan sanctions, and more. BPA will also include automation of mortgage processing and providing loans immediately.
6. Neo-banking: Using cloud computing and open APIs, neobanking will help banks minimize capital and expenses. Through neo-banking, digital banks will focus more on customer convenience.
