The pandemic has changed the face of all systems that existed. The world is now divided into two parts – Pre and Post Covid. It highlighted many aspects of everyday activities that can be changed for the better. This pandemic is going to result in entire societies being transformed in the years ahead.
The Banking sector is not untouched by the pandemic. Although it was fully functional even when most services closed, it still underwent immense crisis during the pandemic. The banking sector, just like any other industry, has to implement newer methods into its system to stand the test of time.
What changes will follow the pandemic?
The Banking sector prides itself on the digital functionality that it has built over the years. But Covid challenge their beliefs and established the fact they need more digitization.
In India, e-wallets and online money managing software gain pace but they are popular only in urban areas. In most rural areas, people still need to go to banks for basic deposits and withdrawals.
The world is moving towards voice-based artificial intelligence, personal smart assistants, built into our homes and mobiles. Therefore, the design of banks to fit in this world requires rethinking banking from the ground up.
New Revenue Drivers
Bank much start looking for new product launch opportunities, as well as generate newer offerings toward an advisory and protection focus. Advanced analytics helps them in identifying relevant ideas for growth, but it should be combined with an alteration of digital sales journeys and marketing.
Newer Models for Risk Management
Banks obtain their credit risk modelling from traditional credit bureaus that are both historical and static on the other hand new models are already established to assess small businesses in various contexts, for example, the supply chains that they serve along with the communities that they belong to. So, the risk management model for banks will change over time to be a relevant creditor to small businesses, that are rapidly increasing.
More user-friendly Experience
The banks have an image of being unpleasant and excessively difficult. They have to work towards changing in order to serve society. Private banks are providing more options to customers where agents will be on hand to guide them through transactions on their own devices, and the space will be renewed to more casual seating areas for important conversations. Changing the style and interior of branches also supports social distancing.
Incorporating AI in Banking
AI will be a crucial change as banks move forward from using these not only to monitor transactions but also to assist customers via "conversational banking". Banks will be combining human and digital channels to help the customers which will be quick and cost-effective. As the love for instant messages grows and demand for 24/7 banking services picks pace, conversational banking involving AI chatbots enables banks to engage in a personalized manner.
We all are a part of the post-Covid world now and both consumers and creators in every sector understand that changes have to be made. Banking will evolve and become more user-friendly and they realize they depend on the society that they serve and not the other way around. Since users have more options to handle money now, banks have to pick up the pace to implement these changes into their systems.
How are banks using augmented reality?
Banks are employing AR apps that help customers to find the nearest banks and ATMs.
Is Digital banking the future?
Yes, Covid 19 has also given a rise to Digital banking as it has eliminated the need for consumers to physically visit a bank branch.
What will bank branches look like in 10 years?
According to the experts, Bank branches will have fewer staff and will deploy more powerful ATM machines.