The way Fintech is a collaboration of finance and technology, bankingtech means the technologies used in banks. Technology such as Artificial intelligence, machine learning, and big data is used to eliminate risks, provide optimum output and increase investment opportunities. New emerging startups are the reason behind the rapid growth in Fintech. Fintech mainly has a financial focus. Fintech has various verticals. One of them is banking tech.
What is Bankingtech?
Bankingtech is a term used for the technology used in banking. From the core banking solutions to high-end customer service robots, everything is part of the banktech. Bankingtech is the tech solution for the banking industry that includes software, hardware, and Tech-enabled services.
Core banking software is the engine behind the creation and management of accounts, balances, transactions, and journal entries. The word CORE is the acronym for Centralised Online Realtime Exchange.
Additionally, core banking solutions also facilitate the storage of client data, receipts, and other reporting tools Generally, artificial intelligence, machine learning, and natural language processing contribute the most to the success of this new emerging domain.
Bankingtech comprises legacy systems as well as new-age banking technologies. In day-to-day transactions, customers use internet banking, credit cards, and ATM machines. These are all examples of bank tech.
Reshaping the Bankingtech
Today banks are implementing technologies to secure banking transactions while making them efficient and customer friendly. To make it smart they are also using Artificial intelligence, Machine Learning, Robotics Process Automation, and chatbots in their daily operations. The usage of new technology in the banking sector has completely transformed banking and business activity.
Traditional banks are struggling to keep up with start-ups that optimally profit from new data-driven technologies such as cloud, artificial intelligence (AI), and Machine Learning (ML), as well as lean and agile processes such as DevOps.
The bankers use various chatbots and computer programs to communicate with customers. These chatbots and computer programs are created using artificial intelligence. Some chatbots answer the queries of the customers in real-time whereas there are other chatbots that help the customers in filling out forms.
Risk is one of the important aspects of the banking sector. If not managed properly it can have drastic effects on the organization leading to major financial losses. Hence it is important to mitigate risks using technology. Risks can be managed using predictive analysis. Here, with the study of risks in the past, upcoming potential risks can be predicted, and accordingly, measures can be taken to combat them with the aid of the bankingtech.
In banking sectors, millions of transactions take place on daily basis. Due to this, the transitions are prone to a number of frauds. Banks tackle fraud by using artificial intelligence. Just like predictive analysis, by studying the frauds in the past, bankingtech to combat the current frauds are developed. The use of Artificial Intelligence drastically decreases the manual thereby providing more accuracy.
Customer identification and validating the identity of customers is an important factor in banks. Banks use techniques that make use of Artificial intelligence to automate this process. AI automates the process of validation based on various factors like photo, signature, unique id, etc.
As banks use artificial intelligence and machine learning to automate their processes, it helps the banks in adapting the changing regulations. Due to this, the banks remain compliant with the standards put forth by regulatory agencies.
Technology is making a huge contribution to the development of all sectors. Making new innovations in technology and using it in the banking sector has strengthened security, and customer integrity and has provided efficient results.
