The banking and finance sector is being fundamentally transformed by the global digital explosion, fuelling the sector’s transition from traditional to omni-channel operations. The trend towards smart banking will continue to gather speed as banks look to minimise operational expenses and improve customer experience.

Technology central in the shift to smart banking

New analysis from Frost & Sullivan, Future of Smart Banking, has identified five key technologies central to the shift to smart banking: advanced analytics, cloud computing, mobile platforms, digital payment, and cybersecurity.

In addition to technology and application innovations that are enabling the transition to smart banking, the study highlights the convergence prospects of technologies and envisions future innovation opportunities.

“Smart banks of the future will leverage the power of data analytics to facilitate real-time financial decision-making,” said TechVision Senior Research Analyst Debarun Guha Thakurta. “Banks will also capitalise on the flexibility and scalability of cloud services to deliver superior services to consumers.”

Mobile applications will empower customers

The new definition of next-generation banking will be mobility. A mobile workforce for smart banks will escalate efficiency and customer experience. Additionally, customers will become empowered through the use of mobile applications with anytime-anywhere banking capabilities. Smartphone-based digital payment applications are already changing the ecosystem of financial transactions.

With smart banks relying heavily on communication networks, endpoint devices and data integrity, innovations in intelligent cybersecurity will be critical. Technology developers must design proactive cybersecurity platforms that identify attacks at inception and protect against frauds and targeted threats.

The future of banking

“The integration of sophisticated technologies such as machine learning, context aware computing and neural networks will bolster intelligent security systems,” observed Thakurta. “The evolution of fingerprint, voice, heartbeat and retina recognition will ensure accurate and effortless authentication, a crucial facet of digital banking.”

Advancements in technologies and transformation in procedures will eventually lead to an era where virtual branches will replace physical bank outlets, enabling smart banking in its truest sense.