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How the Banking Industry Will Change in the Future

How the Banking Industry Will Change in the Future

The banking industry today, compared to 30 years ago, is vastly different. The industry is always innovating, so it looks like there are going to be even more changes coming in the future.

While some of it is speculation, some of the examples on this list are surely coming, and it is just a matter of time before someone perfects and releases the software and artificial intelligence that will launch the banking industry forward. The possibilities are virtually endless, and technology is advancing at such a fast rate that consumers are going to continue to be blown away by the capabilities of some of the technology in banking and finance.

“Smart” Banking

Something that has not been fully tapped into in the banking industry that other industries have made use of is artificial intelligence. With the automotive industry, we are seeing artificial intelligence continues to expand, and it is getting to the point that cars can drive themselves and be safer than humans because there is a lack of human error.

The same technology of artificial intelligence could also have a major impact on banking and the finance industry as a whole. For instance, artificial intelligence could make recommendations and smart decisions for an individual with regard to their personal finances.

Things like expenses, income, and taxes could be set up under the control of artificial intelligence in a way that would benefit someone greatly. There is technology out there that is smart enough to optimize someone’s personal finances based on their objectives.

We are already seeing advancements in this sector because of robot-investors and their ability to invest in a way that brings out the best outcome for a particular investor. Things like age, income, family situation, and other factors can play a part in the decisions of an artificial intelligence software.

New Software in Banking

Companies like PayPal, Venmo, and others are disrupting how some banks used to operate. The good thing on the bank’s side is their reputation and perceived confidence that consumers have in them.

Banks are going to need to continue to innovate their processes or they could risk being left behind from the advancements of other companies that are threatening their business model. The banking industry software development sector is certainly hard at work to build systems that are going to compete with what companies like Venmo are producing.

Consumers are going to win in the end because the heavy competition is going to produce amazing user experiences and will continue to improve banking as a whole. Advancements are coming very fast, and it is obvious because of how fast banks have started to adapt to mobile banking.

With millennials coming of age and starting to get more involved in their finances, there is going to be a race for banks and finance industry companies to innovate and produce technology that will benefit consumers and take away any headaches that are related to finance.

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by Harvey Carr // Harvey Carr is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.