5 Hottest Technologies Banking Executives Should Know

As Artificial Intelligence has become a bigger presence in our society, banks and credit unions are also looking to integrate new technologies into their institutions. In the report “What’s Going On In Banking 2020” researched by Cornerstone Advisors, it stated that 65% of banks and 76% of credits unions considered fintech partnerships as important in their 2020 business strategies, which was a 16% increase in both sectors from 2019. This trend will only continue to rise in the coming years.

Diving deeper into the 5 hottest technologies currently in financial institutions:

1. Digital Account Opening

In order to drive up deposit growth, digital account opening had been the most popular technology that financial institutions are looking to add to their business processes. It is also the top technology priority that banks are looking to achieve from fintech partnerships.

Services such as SuperAcc, which helps banks to automatically analyze KYC documents, will result in an easier and more efficient account opening process for both the banks and their customers.

2.Commercial loan origination system (LOS)

Many banks are looking to expand their lending business into commercial and industrial loans, as a result they are investing in commercial loan origination system to improve their speed to market. However, according to Cornerstone, 7 out of 10 FIs executives don’t believe their commercial lending capabilities are advanced enough.

AI will be crucial to the advancement of LOS, since it can be used to identify potential commercial credit request needs, spread borrower financial statements, validate credit due diligence items and perform vendor order execution. Partnering up with Fintech companies who offer services similar to SuperAcc will be the priority to FIs who want to improve their commercial LOS, since it can automatically extract key items from pdf/scanned financial documents. As a result, it can save FIs a lot of manual inputting time and speed up the loan application process.

3.Person-to-person (P2P) payments

Even though Banks and credit unions are still the leaders in the P2P payments space, technology companies like Zelle, PayMe, FPS and Venmo are catching up. Zelle accounts for 40% of the P2P transaction volume, and 230 institutions have already signed up to partner with Zelle. Millennials are found to be more inclined to be using P2P providers if they offer a general debit card.

4.Customer Relationship Management (CRM)

CRM had been used by banks and credit unions for a long time now; however, the focus has shifted from distributed CRM to enterprise-wide deployments in the past 2 years. According to Ron Shevlin, managing director of fintech research at Cornerstone Advisors, AI had also been integrated within the CRM system to transcribe and analyze sales call, predict caller intent and reduce escalations with speech analytics, and analyze patterns in CRM and public data for predictive lead scoring.

5.New account/teller systems

In order to improve in-branch account opening experience and integrating the digital and branch opening process, a lot of financial institutions are adding or replacing new teller systems.

AI technologies are already being integrated into systems and apps that are deployed by financial institutions. In order to provide a better customer experience and a more efficient banking process, fintech partnerships with FIs will only continue to rise in the near future.