How Indian Banks are Employing Technology to Fight Weaknesses?
The banking industry is evolving continually with the advancement in technology. Banks were always looked upon as a place for long queue and messy paper works, but the technology invasion into the Indian banking sector has brought in a lot of revolution. Eventually, all the bank records turned computerized, and the entry of debit cards, credit cards, internet banking, and mobile banking gradually brought in whole new banking experience. Having seen all the technology changes made in the banking system, let us also see a few other tech practices that could eliminate the loopholes in the banking system.
The banking tasks such as deposits, withdrawal or money transfer would take hours for every individual, the long waiting hours, manual paper works and more had made the banking process quite laborious. Earlier, individuals had to pay the visit to the bank, even if they have to know their account balance. But, today, the technology has brought banking to one's fingertip; everyone can access their account anywhere, anytime, seamlessly. And not to forget, the quick transactions through internet banking, and mobile banking, have enabled various money transfer modes such as NEFT, RTGS, IMPS, UPI, and more, which allows the account holder to transfer the amount to others in a fraction of second. The usage of AI in banking has enabled an improvised customer service as the service is carried out by the chatbots. Thus, it provides 24/7, efficient services through an automated chat program. The chatbot also could sense the customer's needs and offers the services accordingly.
Fraud activity is a major problem for both banks and their customers. The RBI states that around 6,800 bank fraud cases have been reported in 2018-19, which is 15 percent higher as compared to the previous year. Furthermore, the RBI in its annual report has pointed out the rate of fraud activity growth, which has gone up by 73.8 percent. The fraudulent activity could be monitored using the blockchain technology. In this process, all the transactions are blocks in the chain, and they are transparent. That is, the origin and the distribution of the transaction could be tracked easily. The amalgamation of AI and blockchain technology holds greater potential to set up a secured automatic transaction system that could restrict corruption and fraud activity. When it comes to monitoring and evaluating privacy turns to be distress, but it is quite encouraging to learn that technological advancement could check the fraud threat, which is the priority over one's privacy.
Access Through Smartwatches
At times we would not be able to reach to our laptops or we could be in a situation where mobile would run out of charge. To address such situations, the banks have come up with smartwatches account access. The technology upgradation has paved the way for the development of smartwatches, through which one could access their bank account and carry the transaction process with ease. The customer gets personalized services through these smartwatches; personalized greetings are sent to the customers every time they cross the bank location with their smartwatches. This whole new method of access is new, exciting, and convenient to perform the banking transaction just on the go. The smartwatches market is expecting to reach $32.9 billion by 2020, with a CAGR of 67.6 percent. Citing the smartwatch advantages several banks such as HDFC Bank, ICIC Bank, Deutsche Bank, SBI, and Yes Bank offers this method of transactions. Certain banks still limit the smartwatch transaction to specific customers only.
The technology field is so cosmic and is undergoing a rapid upgradation every passing day. At this pace, we could expect a lot more beneficial innovation in the banking sector, which would surely astonish us.