Banking Automation – A Digital Trend or a Hype?

Updated on Mar 21st, 2024


We live in a digital era, and things here change drastically. What once was a sci-fi concept has today become a reality of the global world, and the same can be said about banking automation. Although customer-centric digital banking is not a new concept, complete automated banking has always been a question of interest for many marketers.

Whether you speak for robots, big data, or even cloud adoption, automation in banking has been providing efficiency and premium services to users for quite some time now. And today, many new concepts have been introduced on the global platform that is all set to make banking automation a reality rather than a virtual concept.

Are you also looking forward to exploring tech trends that are set to revolutionize the banking sector in 2021? Well, we have got you covered! From robotics to custom finance solutions, here are a few ways in which automation will transform the banking industry.

Top Banking Automation Trends for 2021

Although there are many tech trends that are all set to transform the banking sector, here we have mentioned a few critical ones that have higher probabilities than others.

1. Biometric Security Systems

The first and foremost aspect that has a higher chance of transforming the digital banking market is biometric security systems. We all know that security has always been a hot topic for marketers, especially for the finance and banking sector. Moreover, with the launch of mobile apps, and digital banking portals, the questions on security were increased significantly.

Therefore, a reliable and efficient security system was much needed in the banking sector, and that’s where the biometric system comes to play! With biometrics, banking and asset security will be on a whole new level, offering confidence to the users about their critical data. Additionally, with the advances in biometric systems, contactless solutions will take over the fingerprint reader solutions.

The current pandemic situation has fueled the contactless biometric solution even more. So, it is not too far when we will be witnessing the contactless biometric security systems across all the industries, especially the banking and finance sector!

2. Payroll Fintech

Another big fintech trend that is sure to facilitate banking automation is payroll fintech. Till now, the consumer’s money was centered on two bigger aspects, namely, the challenger’s bank, and the mobile payments. However, in the coming years, we will be seeing some of the most advanced concepts in this payroll category. To name a few, we have:

  • Salary On-Demand

Financial institutes and banks, under this category, can partner with the HR software providers, and custom payroll systems to provide easy access to the earned wages, to all their employees.

  • Advanced Payments

Banks and other fintech businesses can provide easy loans to their employees based on their salary, without charging much interest as a third-party lender.

  • Early Deposits

Your bank’s customers can receive their paychecks in advance from the standard paycheck dates, using this feature.

  • Crypto Payroll

Last but not least, the cryptocurrency market is also ready to revolutionize the banking and finance sector.

3. Custom Fintech Software Solutions

Custom solutions have always been a trending aspect of the global market, and so it is for the banking automation sector. There are currently lots of fintech institutes that want to partner with banks, but only a few banks are equipped with the latest solutions that are capable of working with the leading fintech organizations. Hence, custom banking software solutions have become a necessity for banks rather than a luxury.

That’s where custom solutions or Fintech-as-a-Service (FaaS) comes to play! Although Fintech-as-a-Service is not a new term in the financial market, it has been evolving a lot since it’s inception. FaaS allows the banks to use API to integrate new solutions into their existing banking systems.

SaaS services like custom digital wallets, mobile banking apps, ACH processing solutions, and much more are all set to revolutionize the banking sector, and make it more efficient and cost-effective for the users.

4. Open Banking

Open banking is also one of the promising and noteworthy technology trends that is ready to transform the banking sector. Open banking allows the banks to view all their data at a centralized platform and even enables them to share that information securely with other fintech companies.

You can easily control all your critical client’s data in an effective manner, using AI and smart APIs. Many leading banks and financial institutes have already started to leverage open banking features to enhance their customer experience. Moreover, a report also suggests that the market for open banking will reach $43.15 billion by the year 2026. Indeed, it is a robust tech trend for the banking industry in the coming years!

5. Voice Technology

Last but not least, we have voice-enabled banking technology that is ready to revolutionize the banking industry. It is a digital era today, and with the new generations, comes new expectations and challenges. For instance, Gen Z today likes to get voice-enabed features in almost all the services they use in their day-to-day life.

That’s why the banking sector today is all set to implement voice-based systems as a support agent for their customers. The voice-based systems can provide transaction history, total balance, and other basic banking information to the users. Besides that, they can even solve many of the customer’s baking issues in no time, by understanding the true emotion of the user’s message with advanced NLP.

Many leading brands like Venmo, PaPal, and SqaureCash have already started to leverage voice-tech in their mobile applications.

Automated Banking

Potential Threats of Automated Banking

So far we saw the most reliable tech trends that are all set to fuel the banking automation sector. But, it is no doubt that every coin has two sides, and so does the banking automation sector. Apart from all the benefits that it provides to the current banking sector, there are many potential threats that need to be addressed before completely transforming the banks and financial industries.

For instance, data leaks. We all know that when it comes to smart IoT devices, data leaks remain the major issue. A[art from that, the security loopholes in the existing banking systems also make it difficult for marketers to integrate the latest digital solutions. Hence, all such factors need to be considered before making any final decision for banking automation. As an expert, we would suggest consulting with an expert before making your digital transformation strategies.

Also Read- Financial Software Development: A Complete Guide for Businesses

How Can You Strategize Your Digital Transformation Process?

1. Analyze Your Digital Transformation Strategy

So, firstly, you need to analyze your banking automation strategy to make the goals feasible and more realistic for your banking and finance business. Like successful banks that have already adopted a perfect banking automation strategy, you also need to reimagine your banking processes and organize the digital transformation strategy as per your company’s needs.

From defining and road mapping the strategy to implementing and sequencing, you should plan everything that could make your brand a fully automated and customer-centric.

2. Go For Expert Suggestion

The next step would be to get an expert suggestion on your digital transformation strategy. Although, making plans and deciding what’s good for your company is in your hands, checking the feasibility of those plans needs expert consultation!

Hence, try to figure a robust software engineering company, and get expert consultation on your business ideas. An experienced company will not only evaluate your banking automation strategy but will even provide you with all the latest trends in the baking sector.

Apart from that, it can even help you get the best features for your custom banking software that can help you make your brand a hit in the market!

3. A Reliable IT Team is Must

Once you have consulted an expert for your digital transformation strategy, you need to hire reliable developers for your banking automation software. For that, once again, you can refer to the same software engineering company and can hire an experienced developer matching your business needs.

We, at Matellio, is one such experienced software engineering firm, that has years-long experience in providing cost-effective finance and banking solutions matching your standards. Our certified developers and testers have a record of delivering top-notch custom software solutions making us the most reliable custom software development firm in the market. Read more about us by clicking this link!

Banking Automation Development

Future of Automation in Banking

To conclude, we can say that the future of automation in banking is bright and successful. Currently, many banks and financial institutes are facing some issues in adopting automated banking systems, but there are solutions to every problem. In the coming years, we will definitely see a complete banking automation scenario. Automation has the potential to make business operations more smooth and to effectively satisfy all the ever-changing customer needs.

Hence, today, or tomorrow, every bank and finance industry needs to adopt the latest digital banking solutions that can make them a big player in the automated banking sector. Are you looking for ways to automated your banking operations? Well, search no more, we have got you covered! With over 15+ years of experience, we, at Matellio, are a renowned name when it comes to digital transformation and software development. You can reach us anytime to transform all your business ideas into a reality. Plus, you can even enjoy our free consultation services by filling this form. So, hurry up!

Till then, Happy Reading!

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