Trends in Digital Banking and the Future of Banking

Banking is one of those areas that benefit most from technological progress. Artificial intelligence and its applications significantly affect how banks provide their services. However, these are not the only directions for developing digital banking. This article explores the latest digital banking trends as well as Ailleron’s developments and solutions. 

• Digital Banking Future Trends
• The Future of Digital Banking – AI and Machine Learning
• Digital Trends in Banking – Remote Communication with the Customer
• The Future of Mobile Banking with Ailleron
• Summary
• FAQ:

Digital Banking Future Trends

Advanced technologies like artificial intelligence and big data processing not only revolutionize the way banks handle transactions, but also affect the security and privacy of our data. In the digital transformation era, protecting information is becoming a priority, and financial institutions are investing in more and more new solutions to provide customers with the best-suited products and services. For example, personalization in banking is not only a trend but a necessity, allowing you to build deeper relationships and increase service satisfaction. In turn, banking mobility, i.e., the ability to use financial services anywhere and at any time, is becoming a standard that banks must meet to remain competitive.Artificial intelligence has become a breakthrough for banking (and not only). As a tool supporting the operational efficiency of banks, it opens up new perspectives for service personalization and risk management. Introducing AI into everyday banking operations is a milestone that can revolutionize the entire industry. However, before we take a closer look at the latest solutions created by Ailleron, let’s pay attention to two extremely important general issues – security and personalization of banking services. Although technologies are evolving in ways that are difficult to predict accurately, these aspects will undoubtedly remain crucial for the future of online banking.

Security and Data Protection

Due to the growing number of threats in cyberspace, data security has become a fundamental element of the strategy of any bank operating in the digital area. Financial institutions are investing heavily in advanced security systems to protect their customers’ personal and financial data. The introduction of two-factor verification, multi-level data encryption and continuous transaction monitoring are just some of the steps to ensure the highest level of protection. In addition, banks are developing educational programs for customers to raise awareness of digital security.

Personalization – the Future of Digital Banking

Personalization of banking services is a strategy that changes the face of modern banking. Thanks to the use of advanced algorithms and big data analysis, banks can adapt their products and services to each customer’s individual needs. This approach translates into increased loyalty and satisfaction, as customers receive offers that are most beneficial to them and tailored to their personal financial situation. The advantage of personalization is also the ability to quickly react to the changing life circumstances of the customer, which allows for flexible adaptation of the bank offer.

The Future of Digital Banking – AI and Machine Learning

Implementing artificial intelligence (AI) in the banking sector significantly transforms how financial institutions serve customers. AI affects the efficiency of banking services by:

• Process automation – AI enables the automation of routine tasks like data verification or transaction analysis, which reduces customer service time and the possibility of human errors.
• Offer personalization – machine learning algorithms can analyze transaction history and customer behavior, allowing to customize products and services to individual users’ needs.
• Fraud detection – AI systems are incredibly effective in identifying suspicious transaction patterns, allowing for quick response and minimizing the risk of financial losses for both the bank and customers.
• Virtual assistants and chatbots – AI supports customer service through intelligent chatbots that can respond to customer queries in real time, which significantly improves the user experience.
• Optimization of credit decisions – using AI to analyze creditworthiness allows for more precise and faster decision-making.
• Nevertheless, not only artificial intelligence will set new trends in online banking. A big challenge is the constantly growing volume of data collected, analyzed and used by banks in their operations to the greatest extent possible. This kind of task is already well handled by models such as Customer Data Platform. For this reason, we also outline this aspect, as it will undoubtedly develop dynamically in the coming years.

Customer Data Platform

Customer data, which includes the customers’ personal data, transaction history, financial habits and many other elements, is a huge but often untapped potential. To change this, tools such as the Customer Data Platform (CDP) were designed to manage large amounts of data. Its main advantage is the ability to continuously use such information for objective optimization of processes and improvement of customer service quality. CDP allows you to create customer profiles based on collected information – demographic data and individual behaviors. Thus, it offers better access to information about customers and makes it possible to create particularly effective, personalized advertising and more relevant messages.With CDP, you can get an individual 360-degree view of the customer along with data visualization. This is an ideal way to understand customer behavior and expectations and thus adapt to their preferences. Furthermore, CDP collects customer data from various sources – both internal and external – in real time, so that the customer’s view is always up to date.

Performing Analyses

The rapid and complex analysis carried out by AI is certainly the future of digital banking. However, as part of Ailleron’s AI Banking solution, this vision of the future is already present to a large extent. Artificial intelligence analyzes customer activities on an ongoing basis (e.g., what products they pay attention to), therefore it can offer them the best options within upselling and cross-selling.Upselling allows the customer to choose a product similar to the one he/she is interested in but in an extended version. Cross-selling provides the user with additional options to complement the primary product selected. Thus, you can increase profits and make customers more satisfied with the services offered by your bank.

Process Automation

Some repetitive processes can be largely simplified and thus accelerated due to their automation. In this way, the need for tedious, repeated use of similar procedures disappears. Artificial intelligence can already take over such duties from humans and fulfil them with similar accuracy but many times faster. Whether it’s analysis, recurring payments, or verification of incoming documents, AI can quickly learn a specific action scheme. The result is a significant saving of time and a smaller percentage of mistakes made during routine tasks.

Customer Service in real-time

Customers can also have questions and concerns when no consultant is available, for example in the evening or early in the morning. The answer to this problem can also be artificial intelligence, which offers real-time customer service 24 hours a day and 7 days a week via a chatbot. Despite this solution being a standard for some time, Ailleron sets trends with innovative tools such as Generative AI Prompter in the banking sector. It’s an advanced virtual assistant that understands and uses natural human language. This way, it provides the customer with individually tailored financial advice based on the analysis of his/her behavior.

Ailleron AI Banking

With Ailleron, you can easily customize your bank’s most essential and helpful solutions using the Ailleron AI Banking module. It consists of the already mentioned automation, ongoing customer service, and other components that support data collection and usage to ensure higher sales and customer satisfaction.Ailleron AI Banking combines all the latest developments in AI-supported banking to provide comprehensive support for critical decision-making and process automation. In short, it gathers all the possibilities offered by AI for the banking sector in one place. This allows for convenient operation of specific solutions depending on the bank’s needs.

Digital Trends in Banking – Remote Communication with the Customer

The banking sector responds dynamically to the customers’ changing needs, focusing on mobility and availability of services. The development of mobile technologies makes banking more and more intuitive and adapted to the users’ individual preferences. With mobile applications, customers can manage their finances anywhere and anytime, which is the key to building a positive customer experience. The rise in the popularity of contactless payments and the development of mobile payment systems and biometrics, which increase transaction security, are just some of the aspects that testify to the evolution of banking toward full mobility. To meet these challenges, banks are investing in the development of digital platforms that are not only functional but also maximally simplified and tailored to the users’ needs.

A Platform for Remote Customer Service and Sales

Nowadays, it’s not only important to provide efficient customer service – it’s equally crucial to do it in the form that is most convenient for the customer as well as, whenever possible, around the clock. This is why platforms such as LiveBank are created: they allow for remote customer service, which means that the customer does not have to visit one of the branches to solve a problem or sign a new contract. LiveBank has also introduced a new tool, the AI Assistant, which provides customers with more efficient communication tailored to their preferences. Response templates with a choice of message tone and additional valuable information about the customer that is always at hand are just some of the possibilities of AI Assistant.Components such as Ailleron Appointment Manager, on the other hand, are a solution that makes it much easier to manage customer meetings – whether online, in-house or in a hybrid model.

Modern Forms of Remote Authentication

Remote authentication must comply with security standards but, at the same time, be quick and intuitive to use. A good example is eKYC – a tool that allows for remote verification of customer identities, using automated, tried-and-tested algorithms. This is definitely one of the most exciting trends in digital banking, as it combines a high degree of security with convenience of use. The customer no longer has to undergo standard identity verification, nor does it require any additional apps. Face scanning with the smartphone’s built-in camera is fast, effective and, what’a also important, can be used anywhere and anytime.

Creating an Engaging Communication Path with the Customer

The use of analyses carried out by solutions such as Customer Data Platform makes it possible to adapt the way of communication to the customers’ preferences, as well as provide them with new offers exactly when they need them most. Modern methods allow us to analyze the customer journey and reach them with attractive and compelling content.

Internet Banking Trends – Cybersecurity

Cybersecurity is one of the most frequently discussed topics nowadays. Ailleron develops a number of solutions in this field: it supports security, risk, AML, fraud management and compliance professionals. With the help of machine learning, artificial intelligence is capable of detecting suspicious transactions, which allows a quick response and prevents fraud. This way you can avoid unnecessary losses and gain in the eyes of customers who can be confident about their funds.

The Future of Mobile Banking with Ailleron

The mobile banking future is marked by an even deeper personalization of the customer experience, access to service always and everywhere and an expanded security standard. At Ailleron, we have created many solutions that expand existing opportunities in digital banking and pave new paths. We are proud to offer complementary tools using the latest technologies. Among them, we particularly want to draw attention to:

• AI Banking – a personalized set of tools for optimizing a wide range of banking activities;
• Ailleron Customer Data Platform (CDP) – a solution that allows the use of extensive data sets to create a detailed customer profile;
• eKYC – remote identity verification module for even greater convenience and security;
• LiveBank – a platform for remote omnichannel customer service supported by artificial intelligence;
• Campaign & Notification Manager – a component that allows you to easily manage meetings in any form.

Summary

There are many indications that the present and future of digital banking will primarily rely on the development of artificial intelligence. Still, it’s worth keeping in mind the other technologies discussed above. At Ailleron, we create the future of digital banking every day and are happy to help you spread your bank’s wings!

FAQ:

1. 1. What are the main challenges of ensuring security in digital banking?

The main challenges are protection against cyberattacks, ensuring the security of customer data, and constantly updating systems to counter new threats. Banks also need to educate customers on how to use digital services safely.

2. 2. How can banks use AI to personalize the offer for customers?

Banks can use AI to analyze transaction data and customer behavior to create personalized recommendations for products, services and to tailor marketing communications. AI can also help optimize customer paths on websites and in mobile apps.

3. 3. What are the expected trends in digital banking for the coming years?

The future of digital banking will certainly mean further development and broader use of AI. While it is difficult to predict the development of technology in the near future, the following years in digital banking will undoubtedly entail hyper-personalization, the highest level of security and ubiquitous mobility.