Table of contents:
- About technology and its influence on Banking sector
- Comfort of technology
- Risks due to technology
- How to manage risk with technological advancement
- How to cope up with future technological advancement
- Risk Management
“Technology will destroy this planet mentally if responsible individuals do not come forward to advocate for responsible use of technology.” ― Abhijit Naskar
- About technology and its influence on Banking sector
Balance between technology and risk in banks is the need of the hour now. As per the recent theories given by experts, technology and advancements taking place in data may provide the bank with the ability to provide its customer with some sort of highly personalized service according to the needs of every customer been part of their system. This service will keep on ruling around for the next few decades as nowadays everyone wants their service as per the choices they make and that is so because they could change it anytime whenever they require so. All these advancements made will replace the old traditional techniques people still pushing to accomplish their never-ending task. As the evolution is still in process the future is a kind of totally dependent on that.
2. Comfort of technology
The decisions should be made in such a manner that a balance better technology and risk management should be given priority and in taking any new step on technology the bank must consider all the risk it should take while implementing it in this what both the things remain in a balanced way. Around the coming times, the future of banking will modify itself over the part of taking control because soon the technology would be modified in such a manner the customer will be responsible for taking care of all their data and banks would there to guide they to be comfortable with all relevant steps and procedures and in case of doubt helping them out. This technology advancement is not bad if we see with comfort and customer satisfaction side but once risk is considered then huge parts fall under the necessary guidelines and security should be made.
3. Risks due to technology:
While considering all relevant changes taking place and risk taken care of the bank wanted to establish its position as a trusted party by providing their customer with advance technology, sustainability, helping hand in management and also safeguarding their digital IDs for that mainly an outside third party is services such as utilities and retailers. When new data sources will be added to the system and after getting proper mastery in that can help in understanding its application in brief. If we consider data analytics then through the understanding of such technology customer demand and other need from the sector can be known and then can be discussed and then add up in the feature if found relevant and useful for a lot of customers demanding the same thing. Unlocking new revenue streams is also a great step bank can look into as its gaining a lot of attention from customers nowadays. Through all these things and technology consideration around or within some time customer will banks to be frictionless for them. As a platform where you can get access to all the sections you are looking for like investment, borrowing funds, saving and much more. As going individual for each category will be quite a Hetrick job. Also, apart from these, all these categories will come as a suggestion based on the profile you made with all relevant details and the part you search more within the platform in multiple times so that all the things fall under a single platform.
4. How to manage risk with technological advancement:
The activation of digital voice will bring a different sort of revolution being a great possibility made. With this the customer’s communication and also questionable to bank anytime in real-life situations. This way this default section been added can be so much of use with very few chances of risk being noticed here.
As it is said by experts:
“Live with technology, not through technology.”
― Abhijit Naskar
- The management of risk with advance technology even being used as digital economy adoption in banking and finance.
- There is a risk as security of data and also privacy is at the stake of risk if the digital economy ways are not implemented in a secured manner with verified platforms for payments and other things in its connection.
- All the security related stuff here is important for the development of the system for the present, as well as future use as if security is given priority with customer trust as their confidential data, will be preserved within the system.
- To make these things work the work should be implemented to make this trendy technology standardized according to the system banks has decided to use as part of adopting the technology.
- The steps should be taken to standardize the work of artificial intelligence as to how the information is been collected and then processed to get the part we require.
- By understanding this part of work, we the banks can be more answerable to their customer regarding the technology they are opting for there system.
- New technologies are much greater thus why not take advantage of them to get more and more customer attracted to the system.
5. How to cope up with future technological advancement:
- In the coming times, this advancement will even become faster and customers will ask for high skilled serves that could provide them with more comfort.
- Also, their requirement can be individual or I can personalize as they can ask for advance setting and extra security favour with the suggestion of investment and profitable offers presently going on.
- But all these things to be implemented in a structured way banks should maintain a balance between the adopted technology and data for risk management to be balanced. So that customer expectations can be fulfilled.
- As this decision has some sort of risk so protection must be given as per need. Some techniques used in finance part are slower which are not quite like by the customer due to poor service so people even don’t want to use in their part.
- Technology and data and data enhancement can be maid through various steps such as- getting in the partnership with fintech firms and successfully the growth will be seen for sure. Implementing data and analytics techniques such as artificial intelligence, machine learning, this could be the new face of the 21st-century banking system.
- Blockchain concept of the distributed ledger will also help increasing people attraction with finance in such a peer-to-peer network. Crypto assets are gaining a lot of support in western countries.
6. Risk Management:
Let us see some steps through which risk management is providing advantages: – when we consider digital economy data governance and proper security is one of the important aspects. The standardization of technology like AL, ML can be informed to the customer to gain their trust. Investing in RegTech can be a good decision. The cybersecurity will enhance the security of data of the customer.
In simple word it would be a great advantage for finance and banking sector can consider technology and risk management as wheels of the same cycle anyone is not settling up properly then it is almost impossible to move the vehicle further so the only option that remains with us to balance both wheels and then enjoy the ride. So as same as cycle customer can relax after putting their funds with trust inside the banking system and thus their data is under trusted authority.