Banking technology trends outlook to 2025
The rise of digital banking, the emergence of new technologies, and a greater emphasis on innovation are all posing new challenges and opportunities in the banking industry. So, what are the banking technology trends for the next five years?
The growing demand for a digital banking experience is reshaping the entire banking industry. For essential financial services such as deposits, loans, payments, and investments, consumers are increasingly turning to fintech solutions and big tech platforms.
As a result, developing and deploying new technology, as well as creating new business models in banking, will be critical in the next five years. In this article, SmartOSC Fintech will show you the 6 best banking technology trends outlook for 2025.
Top 6 best banking technology trends outlook to 2025 every bank must have
1. Digital transformation
Digital transformation is massive. It includes a slew of related ripple effects such as digital marketing, payments and analytics, voice recognition, and conversational computers, all of which will alter business models and banks’ relationships with their customers.
To put it simply, it is the incorporation of digitalization into all aspects of banking. This integration results in fundamental changes in how financial institutions operate and provide value to their customers.
Online banking applications, fraud detection systems, virtual assistants, website optimization, email marketing, data encryption, KYC software, and other examples of digital transformation in banking are available.
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2. Expansion of Open Banking APIs
Customers are increasingly expecting relevant, timely, and personalized experiences that save them time and money. The pandemic demonstrated how well organizations across industries responded to the opportunity to combine technology and digital delivery to meet consumer needs.
Traditional and non-traditional financial service providers in banking can play an important role in creating open banking opportunities that benefit institutions while also providing valuable customer experiences.
Building a banking-as-a-platform or banking-as-a-service model that allows you to sell products and services to a larger prospect universe is more important. Open banking also allows for the optimization and automation of back-office processes, the development of a stronger innovation culture, and the enhancement of customer retention.
3. The Move to the Cloud
To meet the demand for capacity and speed, banks and credit unions must turn to cloud computing solutions to store data and support applied analytics. Therefore, customer insights are improved, efficiency is improved, innovation is enhanced, agility is increased, and the risk of security or business continuity breaches is reduced.
Cloud solutions, as an overarching organizational advantage, can augment human productivity by providing insights that can positively impact both front-office and back-office transformation.
4. Intelligent Process Automation
One of the banking technology trends that banks cannot ignore, it will help banks save maximum time and work efficiency.
Process automation tools such as robotic process automation and digital process automation will continue to grow in popularity over the next five years as banks recognize the benefits that go beyond improved efficiency.
Banks are more aware than ever that an excellent digital customer experience cannot be delivered in the absence of a digital-first back-office. This includes faster new account opening, customer onboarding, and management of digital loan applications.
5. Brand specialization
The development of one or more types of expertise or signature specialties to differentiate, attract, or retain customers who generate additional revenue is referred to as brand specialization.
Other potential benefits include improved brand alignment, increased scale efficiency, and more complementary business relationships. A more focused bank may also benefit from reduced complexity in terms of easier management and greater strategic clarity.
6. Partnerships
Traditional banks must think and act more like the technology companies that have defined customer experience outside of banking in order to remain competitive.
Fintech collaborations can address all challenges. Innovating new products, fintech is much more focused and much faster than banks. Banks can use partnership models to focus on attracting and nurturing customers while also providing products sourced from an ecosystem of partners.
Products can be added to or removed from a platform as needed, giving customers quick access to a broader range of products than the bank could produce on its own.
This will definitely be one of the banking technology trends for 2025.
Conclusion
The banking technology trends that are forecast to take center stage in the banking sector by 2025 include biometric authentication, artificial intelligence (AI), and machine learning. These innovations will help banks become more efficient while providing a better customer experience.
If you’re looking for advice on how to stay ahead of the curve in the banking technology space, contact SmartOSC Fintech today. Our team is experienced in helping businesses harness the latest technologies so they can stay competitive and future-proof.
