Digital adoption in banking varies depending on which type of technology is being discussed.
Below, we will look at some of the major technological innovations that are impacting the banking industry:
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Customers are open to online and mobile banking.
Customer-side technology, such as mobile banking or online banking, is driven by customer demand and customer preferences.
In general, these types of technologies are determined by age group. Younger generations tend to be more open to digital banking technology than older generations.
However, this disparity is not as great between generations as some might expect, except among certain activities.
Younger generations, for instance, are more likely to send money to friends or pay bills on a mobile device than older generations.
Artificial intelligence and automation show promise.
According to a report by Accenture, banks could boost revenue and employment level by implementing AI.
Accenture’s survey revealed similar sentiments among executives, 67% of whom felt that AI would result in net gains in employment.
Despite the potential advantages, however, AI adoption rates remain low, with only 3% planning to invest in reskilling programs in coming years.
Banks see promise in blockchain but tend to resist change.
In general, there is resistance to the adoption of blockchain within the financial services industry.
For example, many banks still fail to grasp the true promise – or the underlying threat – of the technology. According to Medici, banks tend to view distributed ledger technology as a means to improve existing functions, such as settlement times and internal process automation.
Part of this may be due to the fact that financial institutions cannot find ways to monetize this technology.
Some implementations plan to create “Blockchain as a Service,” which effectively negates the entire premise of the blockchain.
In conclusion, digital adoption in banking varies greatly, depending on the technology.
Not all technologies are created equal, and some are picking up speed faster than others.
Digital adoption in banking greatly depends on the technology in question and the ROI of that technology.
Automation and customer-side technology can be expected to increase, but blockchain is a bit of a mixed bag.
All things considered, however, the digital revolution is impacting the financial industry the same as any other.
Though speeds may vary, expect to see a continued upward adoption curve for years to come.« Back to Glossary Index