Digital Banking and the Future
by Kevin Silver
The image once created in our minds when we think of the word banking is not the same for everyone. Especially when looking at generational differences, some may think of a bank in terms of brick-and-mortar while others see its’ sole existence through their computer or mobile phone.
The world of banking has evolved drastically over the past few decades. Just twenty years ago banking took place at a local branch and would take time out of our day. However, with the creation of the smartphone and advances in technology, banking is now at our fingertips. Depositing cheques, paying credit card bills and even sending money via email is the way it’s done in 2020. One can hardly imagine how much more evolved banking can be. But the truth is, it can, and it will. What will banking look like in the years to come? Here is was some experts in the field say.
Augmented Reality vs. Virtual Reality
Many inventions like the iHome, Google Home and Amazon Echo are paving the way for something much greater1. Many researchers believe the future is with augmented reality. According to Live Science, augmented reality is essentially the result of using technology to superimpose information including sounds, images and texts, onto the world we see2. This is not to be confused with virtual reality where we experience alternative realities within a computer-generated environment. For example, imagine opening an app on your phone and images are then projected onto the world around you. This would be an example of augmented reality and not virtual reality.
From a banking perspective, we may eventually have an augmented reality bank teller pop up from our computers or mobile phones and conduct our bank transactions with us (yes, this is probably not going to happen any time soon, but you never know…). However, as facial recognition technology and voice technology continues to advance, we may soon have the ability to tell Siri to “send funds to mom for me!”
Speed and simplicity
There is no question that the greatest competitive edge that financial institutions hold, both conventional and non-conventional, is when it comes to speed, simplicity and convenience. The reality is that as consumers begin to understand how technology impacts our banking, a trend for the quickest response is not a bonus anymore.
Consumers today are looking for easy access and a simple digital experience when it comes to banking. The “Connected Generation” is what they are being called, and they are changing the way we all will be banking in the coming years, regardless of age. Expectations today are to have everything at the click of the button and banking is no different. Consumers are looking for the best experience and best means “easy and simple.” Many digital companies are driving the trend towards ease of experience as one of the more important aspects consumers expect3.
Financial institutions of the future (or now) will need to harness technology and use it to create new ways of banking, collect user data to assess customer experiences to create a simpler banking process. Fancy apps are no longer enough to engage and convince customers. Rather, banks should look to attract consumers with “quality interaction” and “ease of operations.” Data collection of consumers' preferences, decisions and daily activity can guide banks through the next few decades. Finally, and perhaps, more importantly, is the safety and security of one’s finances. Especially as companies begin to get rid of their brick-and-mortar storefronts and move on-line, ensuring customer security and safety is the number one priority.
When looking at today's online lenders, you must do your due diligence to ensure that they are a legitimate company. This can be done by looking at reviews, reading testimonials, and calling customer service to ensure that the process is what it claims to be. At Magical Credit, that is exactly what you will find. And if you wanted to see just how amazing technology can be conveniently and quickly, then visit www.magicalcredit.ca to see what your options are.
1https://thefinancialbrand.com/80988/digital-banking-device-trends-mobile-ai-ar-iot-voice/
2https://www.livescience.com/34843-augmented-reality.html
3https://gulfnews.com/business/banking/the-future-of-digital-banking-what-to-expect-1.1576996361010
