4 Technological Advancements in Banking Industry

DWAIPAYAN REGMI

One important sector, that went through massive change within a decade is Banking Sector. From ABBS, ATM Machines, Internet Banking, Cash Deposit Machines, POS, QR code, Credit Cards, Mobile Banking to recent RTGS, IPS or mobile wallets; Nepalese financial sector has seen a rapid change. Neil Armstrong said it right – if that’s there, I believe that technology will probably step up to their part of it. This quote is getting into reality in the meantime.

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It’s yet questionable – if this growing quantity of branches will be sustainable? Because, globally, the size of tangible banks are rather decreasing. Let’s view the major technological advancements in the banking industry by 2030.

1. Chatbots

Viber banking is already into practice. An Account Holder can check all his basic details from Viber itself. This is gradually getting popular. Rather than assigning staff for regularly interacting with customers, Chatbots are expected to handle basic queries of customers around. These Chatbots will be answering a few general queries that customers will generally have around.

Neil Armstrong said it right – if that’s there, I believe that technology will probably step up to their part of it.

As it is likely for errors to happen with a rise in the use of technologies; these Chatbots will be major query handling issues and then. Although Chatbots are already into various websites from very now, banking chatbots will be specialized and formal enough to handle out the basic queries.

Also Read: History Of Modern Banking In Nepal

2. Automated Banking

ATM banking has already been around as a form of Automated Banking. This era will get to explore the next huge level of automated banking and then. From the rapidly improvised version of ATM Machines, upcoming days will get a further improvised version of technological advancements – including deposit machines, vending machines, etc. Polishing cashless economies around this automated banking will let to further improvised versions of Internet Banking, Mobile Banking, etc.

This will not only reduce the customer flow within the bank but will reduce the size of banks as well. Apart, automated banking will let to promote – cashless economy at a wider level of scale.

3. Blockchain Integration

Blockchain is about decentralizing the ledger storing bank’s complete transaction history within dozens of computer-controlled replicating breadcrumb trail activity. It was in 2015, NASDAQ conducted its first-ever blockchain shares through a new, proprietary platform called Linq. JP Morgan, Goldman Sachs and Bank of America has already been using blockchain right now.

As this feature will ensure speed, transparency, risk and cost reduction and security – it is likely that Banks will be using Blockchain across the distributed network. The current issue of handling Money Laundering will be addressed through this blockchain at a larger scale as well.

4. Cyber Security

It is not just Nepalese banks that are worried about Cyber Security, but a large number of banks are worried about the issue of Cyber Security across and around. Growing banking frauds, increasing digital attacks are the prime reason why banks are spending a large sum of the fund over digital security more than the physical security of the banks. It is no doubt that in today’s banking world – funds are stored more in a system than printed format. Hence, cybersecurity is a key concern anyway in the industry as a whole.

Also, to reduce financial frauds – there are likely to be further issues around. Like GoAML, the banking industry will likely be creating complexities for secured and transparent banking as a whole.

Conclusion /Remark

Technological advancements can’t be avoided. They will certainly move ahead with a regular flow, and we must move ahead with technologies. Else, the cases like firing 1000 employees of HSBC bank in India, or Barclays firing 450 employees can take place in Nepal too. Because, if they fail to move with technology; technology will move ahead of them.

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