Digital currencies offer many practical uses and are also a popular way to launder money, so regulators need to remain vigilant in monitoring their activity.
Banks can thrive in this era by adapting their business models to meet customer needs in new arenas organized around niche areas of interest, although these will likely be fiercely competed for by tech titans and start-ups that offer superior economics.
Blockchain Technology
Now that cryptocurrencies have gained such wide appeal, blockchain technology could play a pivotal role in banking. It has the power to revolutionize processes by being more transparent and user-friendly while increasing security while decreasing transaction costs.
Customers today expect banks to meet customer demands through personalized services available online and at self-service models in branches. In order to fulfill these expectations, banks need to invest in analytics and AI technologies – edge compute solutions as well as cloud analytics – which enable them to reveal insights at point of service locations rather than solely data centers.
To thrive, banks will need to embrace cross-industrial platforms that break down barriers between industries and create ecosystems that address customer needs in new ways. Companies who succeed at doing this will create significant value for shareholders and the financial industry in general; but transformation may prove challenging; many banks will face an uphill struggle in making these transitions on schedule.
Digital Currencies
Digital currencies will revolutionize how banks do business, whether that means tokenized bank deposits representing claims on banks; stablecoins tied to external sources of value such as central bank balance sheets or even cryptocurrency not tied to any underlying asset; or unlinked cryptocurrencies that remain decentralized and non-collateralized assets – digital currencies will change how banks do business by eliminating manual backend processes, providing payments data insights that enable better credit decisions and enable new services to emerge.
Personalization has been an increasing trend in banking, with customers demanding hyper-personalized experiences that make banking feel like working with a friend. Artificial Intelligence will play a vital role in creating such experiences; Intel Xeon Scalable processors offer performance needed for real-time analytics and machine learning capabilities.
Augmented Reality
Customers increasingly opt to access banking services through immersive experiences. For instance, they can check account balances and conduct transactions within virtual environments with chatbots and voice assistants, making bank activities possible without leaving home.
Augmented reality (AR) technology promises to revolutionize how customers interact with banks. AR will enable users to easily view their accounts and communicate more freely with customer service representatives, making banking much simpler and efficient for all involved.
Banks can use edge compute solutions and AI technologies to gain insights into new opportunities that will both increase profits and enrich customer experiences. Furthermore, these technologies help banks identify risks while managing regulatory compliance requirements more easily – for instance through self-service kiosks or dynamic digital signage solutions.
Voice Banking
Voice technology has quickly become a mainstay of consumer life. Millions use it every day to play music, search the web and manage appliances – so it only stands to reason they would want the same convenience with their banking.
Banks are now responding with voice-activated assistants such as Erica from Bank of America. She uses artificial intelligence to answer customer inquiries, make transfers, and offer guidance by studying customer habits – giving banks an edge against rival banks who already offer this feature.
Voice banking chatbots not only offer convenience, but can also save customers money by eliminating expensive call centers. Bots can answer level one inquiries quickly and efficiently, freeing up time and resources for human agents to deal with more complex matters. Moreover, voice banking chatbots help prevent security breaches by monitoring unusual activity and alerting relevant personnel immediately – an essential feature considering that so many accounts are compromised daily by criminals using stolen or weak passwords.
