How will banks of the future look like? 

Customer demands change. The main criteria for them are convenience, comfort, and time efficiency. Banks are changing along with them, they are becoming more technologically advanced. Three key criteria will identify banks in the future. 

• High tech

  Banks will use all modern tools - artificial intelligence, advanced analytical and mathematical models. 

• Speed

  Any client request will be resolved not in hours or minutes, but in seconds. 

• Versatility

  Banks will turn into financial supermarkets, where it will be possible to purchase banking products, insurance services, and much more. 

Trend #1. Security 

New opportunities give rise to new challenges. Before could carry out transactions with one's accounts only by contacting a bank branch with a passport, now it can be done on a mobile device. 

Banks minimize the risks of questionable transactions with the help of modern technologies based on artificial intelligence and big data analysis. The bank analyzes the usual behavior of the clients, in what store and how often they make purchases, how much money they spend, in which city they are located, etc. If suspicious activity occurs, for example, using the card in another city or withdrawing a large amount, the bank may suspend card transactions. 

Data analysis systems are self-learning - the more accumulated information, the more accurate the system works. 

Trend #2. Biometric identification 

The use of cards has been greatly simplified with the advent of biometric technologies, TouchID and FaceID. Confirmation of the operation using a fingerprint or face image is also an additional element of protection. 

In the near future, biometric identification will reach a new level. For example, recognition of body temperature or genetic code. Gaining access to accounts for intruders will become even more difficult. 

The best security systems are those that include different tools: passwords, fingerprints, retina, big data analysis, etc. 

Trend #3. Voice assistants 

Many banks have voice assistants. The voice assistant can get directions, find the answer to a question on the Internet, and turn on music or a movie. 

In mobile banking applications, voice assistants can answer questions related to account balance, find out when the deposit ends and whether it is necessary to change the card. This technology will continue to develop and become more accessible - eventually, we will be able to ask the voice assistant to collect information about all utility bills and pay them. 

Trend # 4. Personal Financial Advisors 

Technologies based on artificial intelligence and big data analysis are getting smarter. Chatbots and voice assistants can already provide simple financial advice, such as investment opportunities. Robots make personal recommendations and special offers. 

The bank can offer a personalized loan for construction materials if it understands that the client is making repairs it pays with a card in construction stores. Bank strives to provide customers with the opportunities that they need at the moment. 

There is no full-fledged financial advisor robot that could completely replace a person yet.  However, if a person is most inclined to trust another person, perhaps personal consultation will become a limited service, but will not completely disappear. 

Trend #5. Digital customer profile 

To understand what offers will be relevant to a particular client, the bank compiles its digital profile. It includes all the information that the clients share with the bank: how often they use the card or mobile application, what cards they use, whether they need loans, and what requests they form on the website or through chatbots. 

Based on these data, the bank builds models of probability and prerequisites for making decisions by the clients. In the future, a digital profile will help create accurate personalized offers that will constantly change depending on the current needs, requests, and capabilities of the client. These can be personal loan rates, repayment terms, deposit conditions, etc. 

Summary 

Today bank clients want to get everything they need in one place, without going from one site to another, pay bills, buy a movie ticket and start investing. To meet all the needs of customers, banks are starting to create new services or enter into collaborations with other companies. Therefore, on the one hand, the development of ecosystems is beneficial for customers, they can use many services without leaving the bank's application. On the other hand, banks are increasing the size of the cash basket they receive from customers, this allows them to continue to develop the company and invest in innovation.