Technology

There are many elements of life that have been profoundly affected by the coronavirus pandemic. Some we will learn to live with, others will revert to how they were, and some we will embrace for the better. What’s certain is that we must adapt our stance in a world that is constantly changing.

Banks are currently facing a serious generational divide, and it’s an issue that requires urgent action, lest banks lose out on the customer of the future. For most adults today, the likelihood is that they opened their first bank account in a branch, accompanied by their parents. However, with the acceleration of digital banking, this assurance has dissolved.

New technologies have infiltrated every corner of the world during the digital age, but four stand out as frontrunners. The DARQ forces of distributed ledger technology, artificial intelligence, extended reality and quantum computing, working independently and together, are ready to guide businesses and society into a bold new frontier.

By necessity, COVID has upped the pace of technological change in the financial services industry. However, there is a longer-term goal to revolutionise the way individuals and businesses manage money day-to-day. As digitisation booms, every player in this sector is determined to innovate.

Financial crime has thrived during the pandemic. It seems obvious that the increase in digital banking, as people were forced to stay inside for months on end, would correlate with a sharp rise in money laundering (ML) and other nefarious activity, as criminals exploited new attack surfaces and the global uncertainty caused by the pandemic.

Data is a valuable commodity in today’s economy, with most industries depending on it. Commodities are traded, but sharing data between relevant parties is not easy because of numerous safeguards. Only a coordinated effort from private and public-sector stakeholders will ensure data flows to where it is needed securely but efficiently.

For years, the trading floor was abuzz with frenzied human beings intent on capitalizing on fast-breaking opportunities and avoiding potential catastrophes. But technology has altered the scene, with the traditional open-outcry trading floor being increasingly replaced by innovations such as electronic trading, automation and digitisation.

Some people and business owners still do not have bank accounts, most in rural communities of developing nations. But the situation is improving as technology opens doors to financial inclusion for the previously excluded. In what specific ways is increased banking access being achieved, with governments working alongside financial firms?

The pandemic has helped to fuel an increase in fraudulent activity, with more people engaging and transacting with organisations online. In the banking industry this has been borne out by figures from the Office for National Statistics (ONS) which has found a 68 per cent increase in remote banking fraud in 2020.

The digital customer experience has become a key differentiator for banks, particularly for big players seeking to stay relevant against their nimbler counterparts. This has become even more important during COVID-19, when institutions have been expected to provide clear and transparent services to support and protect customers as they navigate the pandemic’s many challenges.