November 9, 2015
Banking is a flourishing industry, focused on technological innovations. The trends have been changing year over year with new innovations, increasing number of startups, merger and acquisitions and customer expectations. Internet banking has emerged as the biggest focus area in the digital transformation agenda of banks. The main motive behind deploying these new innovations is to increase revenue, enhance customer experience, optimize cost structure and manage enterprise risk. With the advent of mobile computing, social media and cloud computing, risk environment is changing and banks can no longer ignore privacy of customers.
LTP has come with a 3-page sector snapshot on Banking Technology Services which analyses the key trends in banking technology from 2013 to 2015. You can download the sector snapshot right now. Go through the steps below:
According to a study, 84% of banks globally increased their innovation investment in 2014 as compared to 13% in 2009.
Outside professional services were up 7% in 2014 compared with 2013 due to continued investments by our businesses in their service delivery systems and in our risk management infrastructure to meet increased regulatory and compliance requirements as well as evolving cyber security risk. – Wells Fargo’s annual Earnings.
Banks are already focused on enabling highly personalized experiences by tailoring their products and services according to the various affinities of individuals that can engage and retain customers. They are also looking at utilizing the ledger system to enhance the current processes of various financial services. Some of the recent examples of how banks are implementing technologies are:
1. Banks are using biometric recognition to give branch staff vital information and even tailoring digital signage. The technology recognizes customers immediately on a tablet or other device, and retrieves customer information for the branch staff and other assisted or self-service services to deliver personalized service.
2. One of the banks in Russia’s, Alfa-Bank launched a new activity savings account reflecting customers’ exercise performance. A customer’s account is connected with a common activity-tracking wearable, such as RunKeeper, Fitbit or Jawbone Up. The customer then assigns a cash value to every meter walked throughout the day and Savings are automatically transferred into a special activity account that rewards customers with a higher interest on it.
3. On 23rd June 2014, UK leading bank, Barclays announced that it will be introducing a voice recognition system provided by Nuance Communications that verifies a user based on their speech patterns. The system utilizes Nuance’s FreeSpeech voice biometrics solution. It works by securely storing a recording of a customer’s voiceprint. After this initial recording, the customer will be able to talk to a customer service agent, during which time their voice is verified against these stored voiceprints. The new voice biometrics solution significantly cuts down on the time it takes customers to verify their identity.
According to this 3-page sector snapshot on Banking Technology by LTP, the banking technology spend in US was $ 59.5 Billion in 2014 and by 2016 it is expected to rise to $ xxx Billion (hidden).
The major constitutes of Banking Technology according to the report are:
1. Fraud & Risk Management
2. Information Technology
3. Communication Technology
4. Regulatory & Compliance
5. Marketing Science
Banks can best make the shift by offering customers their personalized experience by implementing the new technologies that are coming up.
Table of Contents:
2. What constitutes Banking Technology
3. Annual increase in Banking Technology in 2015
4. Banking Technology spend in US
5. Banking Industry Technology Trends
6. Banking Technology Vendors