What the Future of Banking and Financial Services Looks Like
The disruptive innovation in open banking and AI is transforming banking and finance industry at an unprecedented speed. The industry is contemplating new ways to mitigate the cost of operations, enhance customer experience and amplify the time to market. Leveraging the capability of open banking and AI will not only automate most of the administrative work of the banking but will also empower the customer with more control and options, thereby helping them better their financial decisions.
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These disruptive technologies have already made the banking and financial institutions reinvent their traditional models. However, the opportunity comes with numerous challenges, including ones around data security and data sharing. The industry must find a solution to this security challenge and enable seamless integration with adequate security protocols.
Consolidating banks and third-party service providers’ data will provide customers with greater control over their bank account and credit/debit cards. Moreover, the customers will be able to find trustworthy information of different providers on a single platform for better comparison and manage all their finances from a single app. Further, the app facilitates an ease of navigation for customers to aggregate multiple accounts on a single platform and transact from a single sign-on page. Though the implementation of these technologies raises questions over its cybersecurity and data sharing, the FinTech industry in their need of hour must build an infrastructure with adequate security features, better IT governance, and seamless technical connections.