January 2019

What the future holds for digital banking? – upcoming year trends

2019 trends in digital banking
Let’s consider approaching trends which can significantly affect digital banking transformation strategy and generate real business value.

There is no denying – banking area is becoming more and more functional providing us with advanced easements and facilities – we are witnessing unstoppable transformation in the ground of digitalization. Certainly, customer satisfaction and personalization of products’ sales became a key-factor to be a successful player in this environment – being suitable to client’s expectations is always appreciated. Currently, one of the biggest demands is comfy access to many channels based on needs and preferences, customer’s experience adjusted individually – whenever you want and wherever you are. Over the years, customers are becoming increasingly demanding what is visibly powering this process – the rise of the smartphone and the introduction of new digital technologies have replaced an ‘old-fashioned’ form of liaison between customer and bank as the drivers of strategic thinking at banks around the world.

1. “Human touch” in the Digital Banking Transformation

The future of banking is undoubtedly digital, but is there any place for human touch? It seems to be needed, especially when it comes to sale of products and handling more complex banking transactions which demand face-to-face identification and identity verification. Probably you’ve been a few times in situation that you had to go to your local branch of the bank and wait in the line for your turn to be served by the bank’s consultant. But to do it, we need to get to the branch, organize spare time during bank’s working hours, take a bus or drive our car and then park it somewhere, probably pay for it, wait in the queue, have the proper conversation – sometimes to be informed, that we need to come back the other day, when we bring additional documents which we normally keep at home.

And now please imagine that you are being served with the same attention and personal touch as in traditional branch, but directly from your home, work or any other place which suits you, while sipping coffee and sitting in armchair. In addition, you don’t have to worry about working hours, because your bank consultant is available always, when it is convenient for you.

Moreover, you can use your mobile phone, tablet or computer to meet with the bank. If there is a need to be presented with some numbers or calculation, the bank’s advisor will display it on your screen to collaborate with you in scope of the bank’s offer. You will be able to receive or send a file from your device or camera, if the exchange of documents is demanded.

The main point is that you have your own bank’s branch in your pocket – to learn more about this new dimension of customer journey visit our site Virtual Branch.

2. Chatbots (and offshoots) are gathering steam

Here comes digital blockbuster for 2019 – chatbot. Basically, it’s an exploitation AI in the way to understand, learn and converse like a human and answer ad-hoc queries in real time. It’s developing expeditiously – now it’s even performing multiple tasks on its own, such as scheduling of meetings, booking of cabs, and auto ordering of items based on voice and text commands. Chatbots are gradually being implemented to many bank’s culture as an additional tool to help with solving basic banking problems. It may seem surprising, but so far customers are finding them comfortable – it’s really thrilling convenience. Of course, more advanced issues demand real human vigilance, but in the era of omnipresent internet, it’s a tool which is perfectly suitable for tech-savvy social stratum and more. With a view to automatization of simple tasks, which can be fulfilled by chatbots eke need to support real consultant in responding to more complex problems or advisory it seems that connection of real human and AI tools is a bull’s eye. Not only it is optimizing costs, but also preserve highest quality of customer experience – that is why we are working on our chatbot – it is going to be launched as far back as this year.

Evolving, connected directly with chatbot AI creature, is NLP (Natural Language Processing) which is responsible whole communication process concerned with automated interpretation and generation of human language. . Despite it is still being developed, for now the system allows users to request news on specific topics, even if they use complex linguistic phenomena such as coordination and negation. Chatbots can provide accurate answers to queries, however fall short of understanding our moods and emotions, and they don’t know how to reply properly. Response for more advanced NLP processing, more human live with enables the analysis of feelings and emotions is Virtual Assistant. On the other hand if you are interacting with chatbots and then break the conversation in between, the bot will fail to remember the context of the interaction, but Virtual assistants can use techniques of dynamic conversation flow to understand human intent, significantly enriching communications with consumer. But it is next step of development AI communication area, where we have huge plans in the near future.

3. Robotic Process Automation (RPA)

Currently, an extremely important technological element are mechanisms, related to broadly understood automation, especially RPA (Robotic Process Automation) which enables to optimize work, significantly reducing the operating costs and allowing automation of processes both inside the company, as well as those that are directly connected with the customer service. RPA is based on a huge amount of data and in-depth analysis (BigData & Data Analytics), using AI (Artificial Intelligence) and ML (Machine Learning / Deep Learning). RPA robots utilize the user interface to capture data and manipulate applications just like humans do. They communicate with other systems in order to perform on a vast variety of repetitive tasks being remarkably efficient tool in business process.

4. Open API and PSD2

Simply put, Open API is creating a seamless network to improve value transfer with clients, vendors/suppliers, partners and employees. It allows both humans and computers to discover and understand the capabilities of the service without access to source code, documentation, or through network traffic inspection. Surely, it’s a profitable way of creating and maintaining long-term business relationships.

Strongly connected with Open API is PSD2 directive which is adopted by the European Union. It is aimed at levelling the playing field for payment providers, banks, building societies and more in the world of payments. Doubtlessly, it is significant evolution of existing payments regulation directed at increasing competition and enhance customer protection and security. It acquires that our payments are conducted more effectively and securely and that the charges that are being levied are clear, fair and transparent.

5. Robo Advisor always helpful

Financial advisor providing financial advice or investment management online with vestigial human intervention – that’s the definition of Robo Advisor. Robotic Investment Solutions are supporting the customer with advice in making decisions, investing eke managing tasks. The system analyzes the financial situation of the client, adjusts the type of investment strategy, which it automatically implemented by monitoring results abreast. An example of such creature is one of Ailleron’s products – RoboWealth – thanks to it, bank customers can independently start a financial investment. Client uses the friendly investment creator to make a portfolio, and then all execution take place automatically. Bank can assists Client at every stage of the process, making it smooth and simple. You can find more information on its official website: http://robowealth24.com/.

6. Indispensability of Cloud Solutions

Lately cloud solutions are irreplaceable – no wonder technology has not only become more prevalent, but also portable. Scalable and custom built cloud computing services improve data protection efficiently what is translating into agile business functionating. It enables its users to access their resources and additional services, maintain applications and increase data center capabilities every time and everywhere, without redundant bother. Surely, it is going to dominate the fintech area, becoming even more popular on account of its practicality and ease of use. However, the cloud has unquestionable advantages, the banks still prefers traditional model of deployment, and they are not willing to share everything outside the bank network. In the nearest future, it may change, but we need time, to usage cloud in scale as it is in e-commerce or others sectors.

Increasing sophistication of technology is pushing forward the whole banking industry, although there are still some inadequacies that need to be uprated. Nonetheless, digital innovations are about to be the cornerstone of the banking industry on account of increasing human demands – for sure it’s not the end of persistent development. Fintech is an exciting industry, filled with innovations to satisfy ever-shifting consumer needs and a necessity for more seamless ways of managing. Banks which are open to such changes will acquire market leadership and stay ahead of competition – in this case following the modern trends and investing in promising technological innovations is the key to achieve your goal, especially when it comes to customer’s satisfaction.

Any questions?

Need quick hints? Feel free to contact us

Piotr Skrabski
Piotr Skrabski
General Manager +48 518 667 591
Ailleron Company

Życzkowskiego 20 Street

Building Avia, 1st floor

31-864 Cracow

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A virtual branch will work perfectly wherever efficient service is crucial

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