How is Modern Age Technology Revolutionizing the Banking Experience?

Technology is ever-evolving, and with the ubiquitous nature of the internet, it is rapidly becoming an inherent part of businesses worldwide. Whether it’s the use of virtual assistants to schedule appointments or the use of voice commands to turn off the lights, the lives of people have changed dramatically. 

The banking sector isn’t any different. Such advancements have increased the need for convenient or comfortable solutions. One such trend is open banking, where the banks are using a customer-centric approach to maximize the value. 

What else? Let’s find out now!

How is Open Banking Improving the Banking Experience?

It is an option that helps customers to get access to new products or services. The idea is to allow customers to get better deals and enable you to make the most out of your money. With artificial intelligence, customers can get suitable recommendations. 

That’s not all! 

Getting a loan becomes easier

Open banking is allowing consumers to get a loan easily. There is no manual gathering of information anymore. Technology is helping lenders get a grab of information and accordingly make the offer. The same option allows customers to find the best ways to consolidate debt and improve their day-to-day financial struggles significantly. 

Open Banking is All About Improving Customer experience

Businesses and individuals are benefiting from easier and cost-effective accounting processes. The technology is automatically updating sending or receiving payments. So, there is quite a reduction in the manual accounting process. The same system is helping providers to handle payments in many different ways. Isn’t that amazing?

Understanding the Technology Stack

The technology is categorized into three layers, i.e., plumbing, value, and application layer. The first layer is about accessing the raw bank data and transferring the required data to the subsequent channels. Usually, technology providers use a software system that connects to different bank accounts. This approach works well where bank APIs are stable/ standardized. 

The next layer is about “insights.” In this, the raw bank data is processed and turned into something that can be used. For example, personal finance management or creditworthiness is a part of this layer that allows providers to check accuracy levels. 

The final layer is about solving the problem using the processed data. This usually includes budget planning or wealth management applications. 

Conclusion

Open banking has completely transformed the banking industry. On one side, you get a clear view of all your finances that could further help you with your budget, finding the best deals, shop for the best products or services. 

Other than that, customers have the advantage of making payments directly from the bank or society. Plus, with the price comparison, one can actually browse through options that enable customers to get results based on their spending abilities.

All of this is possible because the customer account information is accessible via TPPs where non-banks, tech companies, credit agencies can obtain information to deliver tailored products or services beneficial to the customer. In short, adding technology to the traditional banking system is helping customers to access means where they can get their desired services with just a click.