The 9 Latest Tech Trends for Banks

In the world of finance, top-notch security and technology applications have become more important than ever. With the need to protect from cyberthreats, data loss, and stay on top of evolving compliance regulations, finance companies have begun to rely on cloud-based SaaS apps and tools for added precautions.

However, the finance industry can benefit from cloud-based SaaS platforms that go beyond security.

Over the last few years, the finance industry has seen a sharp rise in new technology trends available which can improve finance companies’ workflow, productivity, and customer relationships. Read on to learn about some of the top IT trends finance companies can use to their benefit.

Leading IT Finance Trends

1. SaaS for Remote Work: The COVID-19 pandemic has forced many financial institutions to pivot to remote work–which for many, is here to stay. Many SaaS platforms utilized by banks are cloud-based, giving employees the capacity to take on work from anywhere at any time. Additionally, this provides banks with the opportunity to expand their workforce without a high overhead. It’s important to note, though, that reliable and strict security measures are instituted for remote work to protect data.
2. Automated & Cloud-Based Accounting: With the help of automation and cloud-based platforms, accounting has become easier for financial institutions. With automated systems, accountants no longer have to utilize previous time on tasks like updating spreadsheets or manually fixing number values. Automated systems can eliminate these painstaking tasks, reduce human error, and reallocate time accountants can spend on other tasks.
3. Cloud-based Backup: As banks continue to move toward cloud-based SaaS platforms, the need for stronger security is more important than ever. While incredibly convenient, cloud-based systems can be vulnerable to security breaches. In order to protect data, banks are utilizing cloud-based backup vendors to protect, secure, and backup their data. Vendors, like Backupify, can ensure that no matter what happens, your company’s data remains protected and backed up.
4. Digital Payments & Contactless Banking: In 2020 alone, 44% of banking customers used mobile apps as their primary method to manage financial tasks. Given the convenience and automated capacity, customers now rely on bank apps to handle their finances, whether it’s transferring money or making payments. In fact, a report by Accenture predicts that nearly 420 billion transactions will move from cash to digital payments by 2023. Meaning, it’s essential for banks to modernize their delivery of services and digital options.
5. Blockchain: Blockchain is not a new technology, but recently, it’s become a viable tool for financial institutions to implement for security and accessibility. Utilizing blockchain can offer banks a secure method to account for financial transactions. It also enables users to transfer funds without a banking system, given that blockchain virtually connects all users. By 2023, it’s predicted that spending on blockchain solutions will grow by nearly 16 billion. Blockchain-based modes of transactions can help banks cast a wider net in clients and money transfers, make actions more accessible, and provide more security.
6. Robotic Process Automation: Another rising IT trend in the finance industry is Robotic Process Automation (RPA). RPA, which is essentially a form of Artificial Intelligence (AI), is able to learn, observe, and automate workflows. RPA essentially automates internal financial processes such as security checks, customer onboarding, risk assessment, data analysis, and compliance monitoring. The implementation of RPA and it’s automation capabilities helps save financial institutions both time and money. Not to mention, a smooth, automated financial system can set banks apart from traditional ones.
7. Biometrics: Biometrics have made their way into the finance industry, and are increasingly becoming the norm for many bank apps. As bank clients pivot to mobile online banking and app use, biometrics like facial and voice recognition or fingerprint improves customer accessibility. Furthermore, biometrics can add a new level of security and convenience. Facial ID makes it much more challenging for hackers to break into a user’s bank account, versus the vulnerabilities that sometimes occur with password use. In terms of convenience, facial ID or fingerprint is a one step process for users to sign into their account–meaning they no longer have to enter each character of their password.
8. Hyper-personalization: Banks and financial institutions can build and nurture stronger bonds with their clients and prospective clients by offering them a hyper-personalized experience. This can be done through maximizing off data collected about clients, and leveraging that information to provide a unique one-to-one experience for those clients. For example, if a current bank client’s browsing history indicates they’ve been looking at houses for sale, it would be a strategic marketing decision to send that client information about mortgage loans and options available to them. By personalizing a bank member’s experience, financial institutions can improve customer loyalty and strengthen trust.
9. Fintech Partnerships: Fintech, are finance tech companies that provide financial services to its users. Unlike traditional banking and finance, fintech primarily relies on and utilizes technology to improve and automate financial services to companies and individuals. Over 75% of the global population relies on fintech to either receive or send money, with some fintechs offering services regarding stock investments, loans, and savings assistance. It’s key for banks to consider investing in fintech partnerships in order to increase accessibility and remain relevant.

Protect Your Finance Company’s Data with Backupify

With so many new IT tools and applications available to banks and financial institutions, data security should be a priority. The finance industry deals with extremely sensitive data, from personal bank accounts to social security numbers–all of which need to be protected.

Using a cloud-based backup system, like Backupify, can make sure that happens.

Backupify is a cloud-based data backup and management platform that offers automated, customizable plans to secure your data. With multiple backups per day on our private cloud, Backupidy provides robust security measures and versatile data management tools–all of which can elevate how your bank protects its data. Request a free, customized demo today.