Is Robotics the Future of Banking and Finance?
Continued technological advancement has become an essential part of our survival in the 21st century; the technology is thriving and almost never-ending. Our intuitive need to problem-solve has resulted in the presence of technological solutions for every dilemma. From mobile apps to GPS-driven smart-cars, we continue simplifying every aspect of our lives for a more productive and happier life. Be it gesture controlled smartphones, intuitive computers, biometric-enabled ATMs, or even the aforementioned smart-cars, everything can be pin-pointed to the development in Artificial Intelligence.
The significance of such innovation lies in providing unmanned, unbreakable security, without compromising the feature-set. One such field that demands uncompromised security is the BFI (Banking, Financial Service and Insurance) sector.
Being a critical aspect of the economy, technological development in the banking sector becomes a sensitive affair since any loophole may lead to a loss of property – intellectual as well as monetary. Such a sensitive sector requires reliable and accurate process design and delivery. Additional features require hardware and software updates, or, at times, completely new components. Biometric scanning is one such component; with considerable improvements in this technology, their usage has increased excessively, be it for mobile phones, laptops, or ATMs.
Therefore, it becomes increasingly imperative to incorporate new technology to sustain and improve operational efficiency, and to enhance and maintain customer satisfaction.
Technology - Boon to the Banking Sector
With the advent of Automated Teller Machines (ATMs), bank related processes such as cash withdrawals, deposits, balance and other account inquiries, enabling new or terminating existing services, or any generic inquiry are being done with minimum to no human intervention.
The benefits of such an evolution are multi-layered. The advantages of technology in the banking sector include:
This switch to digitization in the finance sector reaps benefits not only for the customers, but the service providers, too.
The Role of Robotics
The recent development in global banking trends, adapted by the Indian BFI sector, is the integration of Robotics in their software arsenal. The features of automation, as mentioned above, could be categorized under Preliminary Software Robotics due to its striking ability to simplify physical, in-branch transactions across.
Machines that respond to complex customer queries have surfaced at select leading bank branches across India. These machines (Robots) smartly identify the type of customer query using Interactive Content and provide prompt solutions, including those that require further intervention from the staff. This proves to be a giant leap in transforming the way customer and bank relations would be perceived in the future.
Another notable innovation in the future of banking appears in the form of Blockchain. With the increase in cyber-crime and diminishing personal security, majority of the customers severely dread online transactions. Enter, Blockchain – a simplified data structure that helps create programmable, real-time, and tamper-proof digital ledgers for online transactions.
This revolution not only simplifies and digitizes BFI transactions, but provides extended and unabridged security. Digital currency, BITCOIN, has also received much attention with regards to this transition towards automation.
Innovation centre is another important conception of this technological revolution. Being fairly new, this concept has been incorporated almost everywhere within and beyond the BFI sector, globally. It represents a specialized section of an organization that works towardcontinual growth and development as per the requirements of the organization.
Innovation centres particularly deal with aspects such as improving organizational operations, staff development and up-skilling, deploying enhanced technology, ongoing service and product testing programs, and customer satisfaction. Such a concept used to be a privilege for some well-established organizations, which has now found its place in almost every developing organization as a necessity.
Technology at the Management Level
A recognizable evolution can also be perceived in the attitude of the management, where numerous associations have begun considering non-conventional ways to approach an issue. Such organizations focus on providing enhanced customer experience, while at the same time, contemplating progress. As far as an investment pattern is concerned, stakeholders are driven towards investing more in innovation and technology as compared to the earlier times. This approach to finding solutions in the form of interactive futuristic technological enhancement also automatically evolves every other element related to the issue.
Inculcation of biometrics, and securing online transactions are only the evident aspects of a larger pool of benefits that contain several subtle improvements to, both, personalizing data accessibility and security. This established, the fear of cyber security still looms. And in response to the ever-increasing cyber-threats, and the establishment of cloud computing, the government of India has recognized the necessity for change, as has been mentioned by the Reserve Bank of India in 2011.
Technology at the Consumer Level
Consumers, while slightly more assured against cybercrime, demand higher transparency in all financial transactions. They are evidently, and crucially, more aware of the latest trends in technology and the services provided by the forerunners in any sector. A consumer no longer relies on a single source or requires a limited set of features to invest in a specific bank. Increasing emphasis is laid on the features delivered by the service provider instead of merely relying on the marketed products.
This not only increases competition, but comes up with an opportunity for the service providers to take more risks and emphasise on and experiment with technological leaps. Those organizations that hold the capability to take risks and dodge the imminence associated with these new technologies have a clear advantage over their competitors in terms of expanding their consumer-base and becoming the leader in the Indian and the global scenario.
It can, therefore, be safely assumed that technology, especially robotics, constitute a significant component of the Indian BFSI sector, given its reassurance of refined and extended customer satisfaction, operational digitization reducing cyber risks, and transaction transparency for improved customer-relations.
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