The last few years have seen a change in how the financial industry operates in Kenya and beyond. More financial institutions are embracing the use of technology in their daily operations. The need to increase service speed, convenience among others, propels the use of technology. In this article, we highlight some of the trends reshaping the financial industry.
1. Mobile Banking
When was the last time you set foot in an actual bank? Most banks continue to offer services at their local bank branch offices. However, these are becoming less popular as customers can transact through their phones. Most of us can deposit/withdraw funds, apply & repay loans, even transfer funds from one account to another using our smartphones or apps. Even more, those without smartphones can access their bank accounts using USSD codes.
In addition, payment platforms such as PayPal, Shopify, Apple pay, mobile money (MPesa, etc) continue to make transactions more seamless.
Mobile banking provides more convenience for customers in different ways. These include: cutting transport costs; saving on time and energy.
In the coming years, most banking halls will be completely empty.
2. Mobile Apps
Currently, Equity Bank and Kenya Commercial Bank customers can access their accounts through mobile apps. There are many more institutions embracing the use of mobile Apps. These serve customers with more ease and efficiency.
Jisort systems provide a customizable application for SACCOs, microfinance institutions among other institutions. SACCO members/ customers can make transactions at their convenience.
Over the recent years, everything in financial services has been going mobile. There are more payday loan apps, budgeting, and trading applications among others.
3. Cloud Computing
According to Investopedia, cloud computing is the delivery of different services through the internet, including data storage, server, databases, software, etc.
Cloud cloud computing allows one to store and retrieve their data in the cloud. This has allowed more efficient collaboration between teams in different locations.
More institutions are bound to adopt online/cloud management systems for their operations. They are cost-effective (pay-as-you-go pricing), more flexible, and convenient.
4. Artificial Intelligence
The use of AI is one of the trends reshaping the financial industry today. Banks are using AI software to keep the conversation going between customers and their banks. Chat-boxes available on various digital platforms makes this possible. Customers are able to get instant assistance to their queries at any time. With this, institutions continue to keep in touch with their customers and still keep costs in line.
AI helps institutions and/or lenders make better credit decisions. This has come to the aid of traditionally under-served borrowers.
Other Uses of AI
- Data security and fraud detection
- Quantitative Trading; this entails analyzing large sets of data faster and more accurately than humans.
- Risk management
Growth and use of technology in the financial industry is gradually gaining prominence. Artificial Intelligence, Cloud computing, Mobile Apps, and Banking are among the trends revolutionazing the financial industry across the globe. What is the future of financial institutions?