The recent digital transformation drives have enabled the commercial banking sector to step up to new levels in terms of technology. Digital experience is becoming part of the new banking ecosystem. While retail banking was already on the brink of complete digital transformation, commercial banking clients also started demanding technological expansions. The incursion of digital banking and associated technologies helps both the customers and the banks themselves.
Commercial banks were facing a few questions at this time. Some of them are as follows.
- What’s the next technology for commercial banking?
- What are the roles of big data, ML, AI, and NLP play in banking?
- How can the digital transformation satisfy the customers?
- How to get the best out of the digital drive?
So, over the recent years, commercial banks started to adopt and adapt to digital transformation too. Let’s explore what it is all about.
Commercial Banking Innovations
Here is a list of some of the recent innovations in the commercial banking field.
- Open banking
- Digital delivery
- AI-enabled predictive banking
- Customers control the data
Open Banking
The 21st-century customers demand an open system where they can see where their data is used and how it is handled. The adoption of open banking helps them in this aspect. Open banking APIs innovate and collaborate technology for customers to give them more freedom and control. Banks emphasized that such a system can make the processes transparent while making the customers happy. Open banking helps commercial banks to provide personalized services.
AI-driven predictive banking
The application of artificial intelligence in the commercial banking sector is spreading at a fast pace. It helps them to consolidate all data and help the customers in real-time eliminating the delays in services. The AI systems can predict customer requirements from former transactions. It helps to provide what they need at the right time. Commercial banks can engage their customers with AI-enabled chatbots, personalized emails, finance solutions, transaction trackers, and much more.
Digital delivery
The recent pandemic has forced many people to abandon traditional banking methods for digital banking. Commercial banks have innovated themselves to implement many procedures to be digital like
- Digital cash transfer
- Collecting deposits
- Platforms to lend, invest, and avail specialty services
- Mobile apps
- Digital payment gateways
The digital delivery of services enabled the new age customer to be agile with their financial transactions and digital demands.
Customers control the data
Even now, commercial institutions tend to share or sell customer data to third-party service providers without the approval of customers. However, with the expansion of digital transformation, this practice will become extinct. The innovations in digital banking allow clients to have more control over their financial data. This includes sharing, viewing, and accessing the said data. Commercial banks implement built-in application programming interfaces that can control and prevent such cases.