Four observations on the importance of innovation in banking

The tremendous growth in technology in the last decade has certainly made an effect on the banking industry: the undermentioned are just some of the cases.

Numerous companies are engaging in innovative banking, meaning that consumers are more propense to consider a bank’s functions and projects when they are deciding which establishment to trust their savings with. However, not all innovations are necessarily based on what technology is implemented: as individuals build up a stronger awareness of the social issues of the world they live in, users are becoming more conscious of what their funds are used for, and could possibly be inspired by banking companies that invest in charitable causes and take part in humanitarian initiatives, like La Caixa and BEA. This rise in awareness goes to show how the need for innovation in banking is not strictly just a technology matter, but a social one too.

A number of the innovative ideas for banking operations stem from the same trend that might be observed in so many other elements of a consumer’s daily life: today, countless functions that would once require varied appliances and services can merely be managed through a smartphone. After the advent of contactless payments, which do not require a customer to input their pin, and might be used for provider like public transport, some banks are now implementing the possibility of employing one’s smartphone as a contactless device, no longer needing a tangible bank card, with instant identification as simple as a fingerprint recognition.

When considering all the outcome of the technology in this business, some of the most visible ones are those that regard the consumers directly. For instance, observing the digital transformation in banking industry sectors, about the most revolutionary ones is the accessibility of online platforms for users to control their accounts virtually anywhere, as long as they have actually an internet connectivity. By being in a position to have an outline of their account and set up transfers online, enterprises like ING Direct and UnipolSai can satisfy their users’ needs without needing them to go to a tangible banking establishment, which is remarkably convenient with the contemporary hectic working rhythms.

Perchance the technology with the most perspective for the destiny of digital technology in banking is what is known as blockchain. With this keyword being noted increasingly frequently in discussion on the question, it is actually just the beginning of its progression, and it could tremendously transform the business world, as enterprises like Santander and IBM plan to implement this kind of technology in their procedures. As this kind of invention signifies a big step forward with regards to privacy, it is a vital factor for the growth of online avenues in the industry, as the safety of information is a top priority.

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