In this era of banking digitization & innovations, automation, Artificial Intelligence, Machine Learning, Chatbots, Blockchain, Bigdata, and mobile banking, emerging technologies create a new reality for digital banking and how customers view their finances.
The Covid-19 pandemic has accelerated innovations and digital transformations in the banking Industry; there have been more and more digital banking adoptions in these years, which triggers the need to re-evaluate the customer experience in various areas of banking operations; we have also seen accelerations in Cyber Security demand.
Many financial institutions across the globe have adopted new innovations and technologies and taken the customer experience to a new level.
How MYbank China uses various innovative technologies to disperse new loans in just 4 mins. How HSBC and Citibank use Artificial intelligence and ML across various banking areas. Bank of America, USAA using Chatbots to connect with customers, also how mobile banking is reshaped in BBVA Bank in Spain, the usage of IoT in banking with smart beacons, and how Westpac bank in Australia, chase bank in the USA, Barclays Bank in the USA, US Bank and Citibank are using Smart beacons to connect with customers. Banking Initiatives in Blockchain across companies such as Ripple, We Trade, ICBC in China, and the Australian stock exchange. Stories of Big data usage by TD Bank of Canada and the Central Bank of Russia are very interesting to watch.
AI/ML Use case study – HSBC Uses AI and ML technologies in its Reward Program to increase rewards point utilization, The Artificial Intelligence and Machine learning is used to understand the behavior of the customer and predict how they might want to redeem their credit card points, HSBC targeted specific emails offering either of travel, merchandise, cash for a gift as reward point for a credit card. They targeted 75000 people and received a 75% response, whereas the previous utilization rate was 50%.
The banking industry needs to spend millions of dollars to avoid fraud from hackers, Machine Learning plays a huge role in learning and automatically accumulating and tracking the new type of fraudulent acts. Citibank has partnered with a tech company to provide security against fraud for various domestic and cross-border transactions across the globe; in a split second, it is now possible to identify, monitor, track, alert, or act on fraud.
Blockchain – Smart Contracts can be automatically implemented and utilized by industries for recording the entire supply chain event of the industry, such as PO, Delivery orders, Sales invoices, sales return notes, credit notes, trade-related documents, etc. Block Chain can also be used for stock clearing and settlement, stock trading, Loan syndication, entire loan processing like credit checks, KYC checks and approvals process, Land records of government authorities, etc.
In the field of banking and finance Australian stock exchange was the first entry in the whole world to pioneer the blockchain concept in their clearing and settlement functionality, and soon they will be implementing Blockchain in their distributed ledger-based cleared and settlement system, ASX will soon move to Blockchain technology for their broking system as well.
JP Morgan has created a new digital coin called JP coin, whereas the Bitcoin process moves daily, as a single unit of Bitcoins price moved between 300 US dollars to 15000 US dollars in the last 5 years, JP end coin is directly packed to US dollar for example 1 JP end coin values or equivalent to 1 US dollar, This ensures transparency and parity of transactions and enables it to work transparently without involving any objection from regulators as it’s just the medium of exchange similar to any other digital wallet, Bitcoin has been widely debated in the financial world as the valuation and control of any digital currency is always objective huge scrutiny by the regulators, JP end coin facilitates any payment on interbank information Network which includes over 300 banks.
Another big institution that gives competition to the above institution is Ripple is a real-time gross settlement system, a currency exchange incorporated by a USA-based technology company, Ripple employs the degenerated centralized native cryptocurrency known as XRP, Ripple plans to work in transaction areas such as cross border funds movement as well as trade finance.
One more interesting network is We Trade, which was initiated in collaboration with IBM and 14 major banks to form a BlockChain network for trade finance. Currently, many Banks are coming and forming Alliances and creating a new wave of BlockChain Growth in various transaction areas.
AR and VR technology
Augmented Reality overlays digital information in the digital world, and Pokémon is such example of AR usage, Augmented reality enhances real images, text, and other virtual information, banking Industry has been experimenting with AR since 6 to 7 years.
Virtual reality – users are completely immersed in Computer created reality, Virtual Reality was first used in the Gaming industry, and it is now used in the military, Engineering, construction, healthcare, education, Business, and much more even banking is also adopted VR technology.
How Widiwa Bank Italy is using AR and VR technologies, The customer visits a virtual Bank while sitting at home they have to use smart wearable glass to reach this Bank virtually; during this experience, the customer can visit the virtual reception, the graphical representation, The graphical representation of the screen demonstrates as if the customer is visiting the real branch, whenever a customer visits any Kiosks the virtual customer assist him for responding to any queries.
From adopting AI /ML to Blockchain, these emerging technologies have taken banking to Next Generation, enriching Customer experience and helping the banking Sector grow its business exponentially.
Happiest Minds Technologies has begun its journey of implementing different Use Cases Solutions in the BFS domain using AI, Blockchain, and other emerging technologies. Some examples are:
- Blockchain-Based Contract Management
- Document Management and Validation using AI/ML
- Digital transformation of the customer onboarding experience
- Happiest Minds Partnered with CredQuant to offer from ESG ratings to sentiment scores to adverse media report tracking to credit risk scoring
- In-House OCR solution to extract data from documents
We continue progressing in this evolution of building our capabilities in emerging technologies and helping our banking and Financial Customers to grow their Business.
is an Associate Director in Happiest Minds is an experienced professional in the industry for more than 2 decades ,Executed Large scale projects in varied domains and deliveries across geographies , currently managing deliveries in the BFSI domain and Building Capabilities in the domain with Emerging technologies.
