Some of us are still paying by check, while at the same time, we’re hearing that chip readers are on their way out. How is that possible when some retailers haven’t even made the move to chip scanning yet? While technology continues to advance, adoption of it has always moved at a slower pace. But that gap may start narrowing as mobile users for the first time surpassed desktop browsers and that is what continues to fuel the tech revolution – going mobile. Here are some the new trends and how they touch on banking.
Pay By Voice?
In case you haven’t heard yet, voice is the next new thing in paying your bills. With commercials for Microsoft’s home assistant, Cortana, we learn that a smart home can run on voice commands. Others ads show us smart fridges that we can use to order groceries. Talking cars are here already, too with Nissan and BMW hosting Cortana and Hyundai working with Google Home, what’s next? Well, making in-car bill payments for one and booking hotel rooms by voice for another. For banking, look to developments in voice commands to provide another layer of security.
Last year, cell phone signals reached a coverage rate of 95 percent of the world’s population areas and browsing by mobile device surpassed desktop browsing for the first time. More people than ever before are shopping via mobile device and wearable devices are somewhere on the horizon too. As mobile use grows, banking methods will need to change in order to keep up. An estimated 86 percent of millennials are already using mobile banking services to shop, pay, transfer funds, and make deposits too.
Changes in Regulations
By January 2018, banks in the European Union must comply with a regulation to make their company’s systems and data accessible to developers for creation of consumer- and business-oriented payment services. In the U.S., financial technology services, or fintechs, have an opportunity to apply for banking licenses for the first time. Both of these decisions will be followed closely by banking institutions around the world.
Look for virtual reality to be applied to banking functions as investor services experiment with VR apps that offer meetings with financial advisers, access to portfolio overviews, and the ability to personalize your own newsroom. Again, creative applications are being driven by a millennial generation that is very comfortable using technology in all aspects of their lives. Investor services are still considering how the new technology can be used to communicate with clients, but it’s definitely in the works.
If it’s not quite here yet, it’s coming as start-ups are already experimenting with artificial intelligence and machine learning to help conduct risk assessments, increase sales, and more. Bank of America is developing its own bot, while other banks are partnering with companies to offer the technology. Artificial intelligence is used here as a broader, overall term that actually includes a variety of technologies for managing data and learning, or making changes based on information it receives.
Accounting Is Still the Heart of Banking
While these new products and technologies very well may change our lives, or at least how we bank, there will always be a core need for accountants in banking. In fact, accounting opportunities across all industries will only continue to grow. The demand is being driven by a tax and regulatory system that is becoming increasingly complex, as well as the globalization of businesses and a growing overall economy. Learn more about UAB’s online accounting degree program.
Changes driven by technology and its applications are bringing exciting changes to the banking industry. You can be a part of it. You may even be able to help lead and implement those changes. Start with a degree in accounting.