Are Banks becoming more like Tech companies?

Joshua Ooi

In the modern era, technology has revolutionized every aspect of our lives, including how we conduct business. The banking sector, in particular, has undergone a significant transformation in recent years, with many banks adopting new technologies and digital banking services. This has led to a debate on whether banks think more like tech companies.

Chain 1: Adoption of New Technologies

Banks have recognized the potential of contemporary technology to offer better services to their customers and have consequently embraced digital banking, mobile banking, and Internet banking services. Artificial intelligence and machine learning technology have been combined to improve services and offer even better client experiences. Additionally, the adoption of blockchain technology has improved the security and transparency of customer transactions.Banks make investments in cutting-edge technology just as eagerly as IT companies do for the benefit of their clients. This demonstrates not only the value that banks place on their clients but also how they are adapting to the shifting landscape of the financial sector. Therefore, it will be interesting to observe how banks use new technologies and innovation to enhance their services in the future

Chain 2: Consumer-Centric ApproachBanks are increasingly focusing on the needs of their customers, using customer data to personalize their services and improve user experience. By examining client behaviour and preferences, banks can provide customized solutions that address specific demands. Banks have also started to offer 24/7 customer care via chatbots and virtual assistants to ensure consumers can get assistance whenever they need it.

Creating cutting-edge goods and services that address their customers' evolving requirements is another way that banks are embracing customer-centricity. For example, some banks have begun to provide mobile-only accounts that are specially created for millennials who prefer to conduct their banking on the go. Similar to this, several banks have developed online markets where clients may compare and select from a variety of financial goods and services all in one location.

Chain 3: Regulatory Compliance

While banks operate in a highly regulated environment, they are continuously seeking ways to innovate and stay ahead of the competition. Banks are collaborating with regulatory bodies to create new policies that support innovation. By adopting this strategy, banks are able to meet legal standards while discovering fresh avenues for innovation and client value delivery.

In addition to collaborating with regulatory authorities, banks are investing heavily in research and development to stay ahead of the curve. This includes exploring new technologies such as blockchain, artificial intelligence, and machine learning to improve the customer experience and streamline internal processes.

Chain 4: Conclusions

In conclusion, banks are increasingly thinking like tech companies, as evidenced by their adoption of new technologies, customer-centric approach, and collaboration with regulatory authorities. Banks are finding ways to innovate and improve their services, and the banking sector will continue to evolve to meet the changing needs of their customers.