Like most industries, banking is changing with the times. Technology is making its way into the world of retail banking and financial institutions are finding new ways to innovate the entire customer and client experience. Tech trends like biometrics are becoming more prevalent in today’s banking industry, artificial intelligence chatbots have replaced customer service agents almost entirely, and financial tech (FinTech) has seen a sharp rise in investor and customer interest. Banking just isn’t the same anymore.
And while technology does many things, it doesn’t do one thing: stop. With this in mind, it’s a great time to see what the future of banking looks like for 2020 and beyond.
Insuring for the Future
Before we look at some of the upcoming and rising trends in the industry, it’s still important for financial institutions to invest in insurance for banks. Some risks and liabilities may change, but there is still space for having claims made against banks from customers. Looking into insurance for banks should always be prevalent, no matter what trends are taking place outside in the industry.
Mobile apps have taken over how we operate as consumers. Dating, ordering food, investing in stocks, connecting with new employers–all can be done by clicking or swiping on your phone, this includes banking. Mobile is poised to replace cash and streamline the customer experience as well as offer up robotic advice instead of human interaction via artificial intelligence and predictive text. Mobile will continue to grow and offer customers ease of use so they can continue about their business without missing a beat.
FinTech startups have launched onto the financial scene in recent years, upending the way banking gets done. But to get ahead of these tech-driven financial startups, banking is set to acquire and assimilate into their larger operations. The main issue is that FinTech startups need money from investors in order to continue on. When they don’t have any financing lined up, it may be the only option to give into offers from banks.
Shifts to IT
Staffing will also start seeing a reduction as IT will continue to take over tasks that are traditionally done by employees. Banks are set to hire more IT workers to handle the engineering side of online/digital banking instead of employees in areas like customer service.
A Digital World
Paper still operates in the world of banking, and some customers prefer it that way, having hard copies instead of something they can click on. But banking is increasingly becoming a digital world that will put emphasis on eliminating paper altogether. This will not only makes it way to printed banking statements and loan documents but banking branches themselves.
In fact, with the rise of banking cafes, such as Capital One Cafes, banking in-house will be an afterthought and looked at as a digital-only offer or supplemental service attached to businesses already in place.
About Financial Guaranty Insurance Brokers
Since 1983, Financial Guaranty Insurance Brokers has distinguished itself as a provider of Professional Liability, Cyber Liability, and Crime insurance products for entities of all types. To receive timely, personalized service from a knowledgeable and experienced staff, call us today at (626) 793-3330 to speak with one of our professionals.