6 Ways Technology Has and Will Continue To Transform The Banking Industry

Since the emergence of the internet, a lot has changed in the way we carry out our daily activities. Prior to the internet, we had to send letters to people across the globe via the post offices, and then we would wait for weeks to hear back from them. Now we have email. We used to have to always go to a brick and mortar store to do our shopping; now we have e-commerce.

Where it concerns banking transactions, we used to have to visit the bank to deposit, withdraw, check balance and transfer money to someone else; now we have internet banking. A lot really has changed but the truth is the banking still has a lot to do to make sure they remain relevant in the future.

The emergence of other technologically oriented financial services such as PayPal, Western Union and Bit Coin are not making things easier for the banking industry. Frankly speaking, they are a direct competition/threat to the industry.

I for one would love to see the banking industry embrace technological advancements to the fullest so they stay relevant. Here are a few ways that the banking industry has, and I believe, will continue to embrace technological advancement.

1. Banks should continue to hire tech-savvy staff

The time when being financially savvy was all the qualification one needed to gain employment in a bank is long gone. As digital technology continues to take over our world and our lives, it is becoming increasing apparent that the guy with nothing but financial know-how will not survive the inevitable evolution of the banking industry.

As banking activities continue to be adapted so that they are carried out through digital channels, it will consequently present new kind of problems that only the digitally savvy will be able to answer.

The Lubbock Bank in Texas, as at last year had already started to ask different kinds of questions while seeking to hire new staff. Questions, for example, that seek to find out a potential customer service reps mobile preferences.

2. Banks will seek to connect their different channels

Even though internet banking has made banking experience a lot less tedious and a lot more pleasurable, there is still the problem of too many channels.

Many banks still have different channels for different banking activities, from internet banking, to customer service, to accessing of grants and business loans amongst other things. A good number of banks across the globe have already taken steps to connect their varied channels together to give the feel and experience of an omnichannel.

More and more banks will continue to invest heavily to improve customer relations across their different channels. They will seek to get closer to the point where customers can begin their research on the internet and wrap up a deal in a branch without having to jump from place to place across the web.

3. Training of employees will utilize the power of digital technology

With the increasing influence of digital technology on our lives, it is getting harder to argue against the fact that visual education is the best form of learning. This is by no means a move to discredit the conventional method of learning via text (books and manuals). They have certainly held their ground for a long time.

But take a look at where we are headed as a society and you will agree that it can no longer meet the ever increasing demands of efficient and effective education on its own.

Tom Kunz, the head of digital banking for PNC Banks says that instead of learning on the job or by reading of manuals, bank employee training should be facilitated by the use of highly visual content. This shift in how we communicate information will certainly work well for the younger generation of bank employees who grew up with Facebook, Instagram and Twitter.

4. Technology will enable banks to be open 24/7

John Schulte, Chief Information Officer at Mercantile Bank has this to say, "Having a bank that's wherever you are, open all the time, and offering you convenient, fast and more intelligent ways to manage your money resonates strongly with consumers"

Innovations in mobile and internet banking will continue to increase exponentially. More so where it concerns offering more personalized support (such as a video chat with a customer service rep) or developments around mobile wallets and e-payments, the simplification of cumbersome processes(like opening an account) and the use of smarter device capabilities (like finger print ID and location based information dissemination).

This will gradually dispel the idea of banking services that absolutely require your physical presence in the banking hall before they can be carried out. It also implies that banks will be open 24 hours a day.

5. Banks will continue to invest in digital technology startups/projects

They have and will continue to do this because many times, digital technology startups have often come up with solutions to problems in the banking industry. I am talking specifically about digital technology startups that concentrate on financial services.

Another path to tow would be to organize and setup projects/competitions for digitally savvy entrepreneurs/individuals to prove their mettle. They often will come up with some seriously innovative solutions to banking and financial operations that even the banks may not have fully realized yet.

This is explained in simple terms by Accenture: "The fact remains that innovative start-ups have a high innovation quotient, but need capital, and established financial services firms have lots of capital, but need to increase their ability to innovate."

It should be noted, however that banks do not become innovative themselves by investing in innovation. Also the bank's investment does not somehow guarantee access to or the ability of the bank to utilize said technology. What this implies is that the bank's investment is not the only prerequisite needed to propel banking into the digital age, but it is and will always remain a key supporting element.