World events like the coronavirus pandemic are changing the face of financial institutions and the way we conduct our banking transactions. Cybersecurity experts note some needed changes in security technology for financial institutions in general, including for our local branches. With cybercrime spiking 600% since the pandemic began, online banking attacks increased too. But there’s a better option than clutching our payment cards and hiding in a closet. American Banker takes a closer look at how these institutions are stepping-up to the future ways of everyday banking and much more.
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Many financial institutions are increasing their messaging efforts to tailor to individual customers, recommending things like better strategies and particular products more suitable to customer needs. Technology advances offer personalized insights using artificial intelligence, virtual assistants, and even predicting account overdrafts before they happen.
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Many predictions believe facial recognition will be used for banking authorization technology. Research by Aite-Novarica Group estimates 600 to 700 financial institutions moved to facial recognition this past year. Despite the use of “Deep Fakes” by hackers (using a photo or digital creation to pose as an employee and fool others to provide personal credentials), experts believe financial institutions will start with small transactions. If these work as planned, movement to larger transactions will follow.
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Digital platforms that simulate the personal interaction of a visit to a branch will increase. Conversations and other life-like interactions will include those on video, web and mobile chat, and document sharing. It will provide new meaning to the adage “Get to know your local banker.”
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Since last year, financial institutions began moving toward cryptocurrency services for their clients. Global investing in digital currencies spiked to $2.25 trillion last year, making financial institutions happy to be a part of that growth. However, until specific guidance is provided by those making policy, they will use caution before jumping head-first into the e-currency pool.
Whether these insights helped or raised concern about the future of your personal banking is up to every individual to decide. Knowing what’s on banking’s technology horizon will at least educate us to the next changes being made in our own financial transaction horizons. It’s time to get to know your banker again, so you’ll know if any of these new options are for you.
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