Even in the pre-pandemic era, traditional banking was dying a slow death. This is because banks are no longer earning revenue in the traditional way i.e. through deposits and lending. Traditional banks operating a large network of physical branches and maintaining expensive IT systems, will increasingly find it difficult to achieve profitability. In order to stay relevant banks will need to leverage the likes of artificial intelligence, automation, chatbots, interactive virtual assistants and many other frontier technologies in their day to day banking operations.
Infact, artificial intelligence is already being used by the majority of the banks to detect money laundering and prevent fraudulent transactions. Artificial intelligence is also helpful in enhancing customer experiences as it grasps customer behaviour through previous interactions, thus helping banks design better suited personalised banking products for their customers.
Lastly, artificial intelligence and machine learning helps automating repeated monotonous work thus freeing employees to focus on value addition tasks that require human intelligence. On the phone banking front, interactive virtual assistants through voice recognition are emulating human operators thus gradually replacing them. Banks must stay ahead of the curve and reap benefits of technology to not just stay profitable but also to be relevant.
All said and done, technology is surely redefining the way we’re living our lives. The banking industry will be no exception to this despite the above challenges. For an industry that is rapidly evolving, it’s future workforce and those working within the banking industry must upskill and/or reskill themselves. As banking evolves from a support function to a strategic function, there is an absolute need for finance professionals and those interested in pursuing a career in finance to develop a broader range of skills.