Imagine not having to fill out extensive forms at a bank to open an account, instead doing it all on your phone! 2020 is going to be a promising year for mobile banking.
So without further ado, here are some trends that we’re looking forward to:
Voice recognition algorithms comprise a market that’s worth $49 billion! Not only has it streamlined mundane tasks, but it has also greatly helped individuals with impaired speech. Voice recognition algorithms have penetrated every aspect of our everyday mobile usage. Case in point: Siri and Alexa.
Voice-activated technology is also rapidly being used in the banking sector. Banks are making an attempt to replace other methods of two-way authentication with voice-recognition. Some banks have also allowed accountholders to use voice recognition to report fraudulent transactions or losses.
Other than that, account holders can also check their remaining balance, transfer funds, pay bills, and apply for loans and overdraft services. The US Bank, in particular, is using all three services (Alexa, Siri, and Assistant) to facilitate voice-based commands.
However, security threats are still a pressing concern. Most banks and financial institutions are yet to adopt the technology because of the lingering threat of cyberattacks.
Digital Account Opening
Digital account openings, also known as DAO, are going to be increasingly popular in 2020. The technology has been in place for three years now, but was limited to a few banks and credit unions.
As per a recent study by Forbes, over 46% of banks plan to either introduce or further improve on this technology in 2020.
The survey also stated that around 39% of banks and credit unions stated that they wished they would have implemented the technology back in 2019.
So why didn’t banks get on the DAO bandwagon a long time back? The answer is simple: ineffective process design. When it comes to account opening, banks are most focused on complying with regulatory frameworks. This makes the entire process more complicated, lengthy, and riskier.
By going digital, they would have to redesign the DAO process altogether, and this will take up lots of time and effort—hence the reluctance.
The use of blockchain
Blockchain technology has been all the rage in the past few years, and the ripple effects have spread all over the banking industry. Financial institutions are now using blockchain to create a digital signature for every transaction—one that can’t be forged. This helps them record and execute financial transactions without any central authority.
Some startups around the world have started using blockchain technology to run background checks on clients and authenticate a person within a few hours. This helps them eliminate massive paperwork and facilitate transactions quicker than usual.
Whether you’re looking for credit cards, mortgage loans or home loans in Panama City, FL, get in touch with Tyndall Federal Union. As a credit union, Tyndall is working its best to bring about disruption in the field of digital banking.