The rapid progress of society, as well as the active introduction of new technologies into life, oblige financial and credit organizations to use the latest computer achievements in their activities. The process of integrating digital technologies into the financial sector is an indispensable element of the growth of the global economy. In order to maintain high positions in this market, its players need to keep pace with trends and change established business models in accordance with the realities of the time.
You can learn about innovations in the digitalization of the banking sector this summer in Moscow. On 22-23.06 the conference “Digital Transformation and Banking Technologies: Status 2021” will be held, which will be held in a mixed format. Leading IT specialists of Russian banks will take part in it. Venue – Moscow Marriott Grand Hotel.
And you will find out what trends in the development of mobile banking are relevant in the current year by reading this article to the end.
Biometrics and special conditions of service
Banks are actively expanding their biometric client bases. Clients who have transferred their biometric data are provided with special conditions of service that differ from the general ones. This is a lower lending rate, a higher cash withdrawal limit, and the like.
However, the main obstacle to the development of this technology remains the low level of customer interest. This can be attributed to lack of awareness and various myths that disturb society. One of them is insufficient protection of personal data. However, in this case, there is no need to worry. Many large companies have long been using two-factor authentication, which is a two-step access control technology. Sites of electronic games, for example, PokerStars, Fortnite, Minecraft, where the protection of a constant flow of funds is at a high level, banks (Citigroup, VTB, Raiffeisen Bank) using the same technology, and most online stores have long learned to protect their clients’ accounts … Obviously, in the not too distant future, this experience will convince users that biometrics are also well protected.
The second problem is the underdeveloped logistics for the delivery of biometrics.
Smart apps get smarter
Just a couple of years ago, only control freaks could get the details of their spending, now many mobile banking users have this function. Top 10 Russian banks provide this opportunity either in Excel format or by compiling a sample of online / offline acquisitions. Nevertheless, you will definitely find the details of the invoice in your gadget.
In the near future, it is planned to add some more functionality to applications, namely:
- recognition of the transfer object by its appearance, which will reduce to zero erroneous money transfers to third-party people;
- payment of checks by photo;
- personal rate for the client, which will transform according to the lifestyle;
- third party applications will be able to use the API.
Modernization of speech technologies will lead to an involuntary increase in the number of users using this functionality. Undoubtedly, the function of paying current bills with the help of a voice assistant will become mega-popular under one important condition: the client must have one hundred percent confidence that, thanks to one phrase, exactly one and not another bill will be paid.
Central Bank: the scale of influence
The key influence of the Central Bank, interfering in the work of banks, makes them develop their digital resources more dynamically. This influenced the improvement and launch of innovative technologies, including: a fast payment system, payment by a two-dimensional barcode (QR code), a face recognition system, automatic interbank transfers, etc.
One example of influence is the SBP. The payment system for fast payments by phone number was created by the Central Bank with one goal: to reduce the commission fee for interbank transfers. All major banks were required to connect to the system by a special directive. The implementation of this project, despite the resistance of individual entities, allowed the Central Bank to make interbank transfers up to one hundred thousand rubles free.
The next topic, which puzzled the Central Bank, was the news about the electronic national currency. The Central Bank assures that the electronic ruble will become an incentive for the development of innovative payment technologies, reduce costs for consumers of services, and increase the competitiveness of Russian banks.
You need to understand that the Central Bank will develop this idea, and, perhaps, as in the case of the UBS, it will oblige to use the electronic ruble in payments. However, it will be able to become in demand only when its advantages become known.
Advertising in new mass media
Two Russian banks, Sberbank and Tinkoff, became the pioneers in placing their advertisements on TikToke and Likee. The successful promotion of commercial advertising has inspired other banks to follow suit. At the moment, almost all banks in Russia are represented on these social networks. Not everything is equally successful, but still … It is worth noting that in the banking business the LTV index (total profit from cooperation with a client) is always taken into account and attracting new customers is one of the main criteria for success for all bankers. The main task is to attract and retain a client, having received income. Social media is one of the cheapest ways to make yourself known, talk about the pros and add another potential client to your asset.
Bank office transformation
2020 is the year of self-isolation and “retirement”. The usual offices are empty, their value has dropped significantly. But, in spite of everything, two banks (Alfa-Bank and Sberbank) announced the opening of new, innovative offices. True, their functionality worked more for the image and entertainment of the client, which was previously used only when working with VIPs. Now Sber’s clients communicate with employees not at trivial counters, but at tables with a cup of aromatic coffee, and Alfa-Bank’s digital office instantly recognizes clients’ faces and sends their data to employees. Alpha has given up paperwork and permanent jobs.
It should be remembered that the majority of banks’ clients are people of different ages and different ages, so innovative technologies are still more designed for a youth audience.