COVID-19 has changed almost every aspect of our lives. We are gradually embracing the ‘new normal’. For example, virtual meetings are replacing in-person meetings; people are switching to digital shopping and much more.
Let me tell you; These changes do not exclude banks either. The industry noticed a significant shift towards digital banking during the pandemic. The recent McKinsey report states that our country has advanced five years in consumer and business digital adoption in just eight weeks.
Wells Fargo Securities analyst Mike Mayo told American Banker: “What we are seeing is the biggest acceleration of digital banking in history.”
Fintech has been an integral part of digital banking. But what exactly is that?
Well, it’s a combination of the term “fintech.” Fintech refers to the implementation of various technologies to offer financial services to clients without any hassle.
TO World Bank Report shows that the fintech market reports rapid growth during the pandemic.
However, the level of customer satisfaction has dropped due to digital banking.
To 2020 JD Power study revealed that banks’ overall customer satisfaction declined due to the transition from branches to online banking.
Therefore, banks must use financial technology in a more customer-friendly way after the pandemic. In this way, customer satisfaction levels will not be affected.
Virtual voice assistants
Traditional banking rarely provides 24/7 customer service. But artificial intelligence virtual assistants can offer 24-hour customer service.
Most virtual assistants help you with tasks like checking your account balance, paying bills, managing credit and debit cards, etc.
But what if banks implement virtual voice assistants?
You may have used voice-activated devices like Siri or the Google Assistant to play music, get directions, call someone, etc.
Banks also need to use virtual voice assistants to offer services. By doing so, you can save the time you would have spent writing and finding the solutions to your questions.
But very few banks have voice-enabled virtual assistants. For example, in the US Bank mobile app, you will find US Bank Smart Assistant. You can use various commands to transact, such as “What is the balance in my account?” To know your balance.
Detailed view of your finances
Virtual assistants primarily help you with transactions and other banking-related tasks. But if you want to control your finances, you need to know where your money is going. Based on that, you may need to change your spending habits.
Therefore, banks should use fintech that helps clients understand their spending habits. For example, take a look at Bank of America’s virtual financial assistant, Erica. In addition to standard banking services, it helps you:
- Get a weekly snapshot of your expenses for the month to date.
- Monitor recurring charges.
- Receive notifications of changes to your credit score.
In short, you can get a clear picture of your financial life. It helps you manage your money in a better way.
In fact, digital banking is more convenient. So more and more people are adapting to it. But sadly, because of this, fraud is also on the rise.
Ryan Leblond, fraud prevention and investigation manager at ESL Federal Credit Union in New York, says, “Scammers are getting much more advanced in their approaches.”
But thanks to artificial intelligence (AI) you can help protect sensitive data. AI follows a set of rules. Based on that, review transactions and spending behaviors. If the AI detects any irregularities, it can send an alert to the customer.
Let’s say you routinely make small quantity purchases. But suddenly your account shows a large quantity purchase. Of course, AI would flag it as a fraud and contact you immediately.
Therefore, banks need to use fintech to offer strong security, so that their customers feel comfortable using digital banking.
Convenient payment methods
During the pandemic, large numbers of people switched to online shopping. People visiting stores to buy are increasingly using cashless and contactless payments via digital payment platforms.
Therefore, banks should use fintech to update all physical credit and debit cards and implement ‘tap to pay’ technology. By doing so, you can make contactless payments and save time as it is faster than swiping or inserting your card.
Banks should also implement e-wallets due to their immense popularity and use. Many e-commerce platforms and brands like Amazon and Starbucks are creating their e-wallets. These companies offer attractive rebates and reward points for using their e-wallets.
Therefore, banks must partner with various brands to attract more customers. Also, customers will find it beneficial to use e-wallets instead of cash.
Banks are installing biometric sensors and iris scanners to provide automated teller machine (ATM) services. So you don’t need to carry your physical card or worry about remembering your PIN.
Biometric-capable ATMs use fingerprint sensors along with eyes and palms to verify authenticity. But the problem is, scammers can create synthetic fingerprints or use fake irises to breach security.
But thanks to fintech, banks can use finger and palm vein readers to authenticate their customers.
The vein scanner illuminates your finger or palm with infrared light. Then your hemoglobin absorbs it to create a profile. Its life detection helps to detect whether the fingerprint is accurate or not.
The bottom line is that fintech has brought a revolutionary change in the finance industry. Banks should use it to offer a wide range of services to their customers. During the pandemic, fintech provides various tools to help even tech-shy customers who are gradually learning how to use apps to manage their finances.
Therefore, once we return to our normal lives, some of our habits, such as contactless payments, online banking, etc., are likely to remain. Fintech will play an essential role and will become commonplace even after the pandemic.
Image credit: anete lusina; pexels; Thank you!