(MENAFN- Trend News Agency) In the fast-paced world of finance, significant changes are on
the horizon, promising a banking revolution that will transform the
way we interact with our money. Prepare yourself, because your
local bank is on the brink of a transformation. Regardless of where
you are around the globe, banking as we know it is going to become
smarter, sleeker, and more user-friendly than ever before. Aslan
Alibeyli, leading expert on Strategy and Transactions at EY
Azerbaijan shares his insights.
Goodbye, Long Queues and Paperwork
It pleases me to say with certain degree of certainty that we
can soon bid farewell to the era of long queues and endless
paperwork. The future of banking is all about convenience,
leveraging technology, particularly artificial intelligence (AI),
to streamline banking processes and simplify your life.
Fun Fact: Did you know that the first recorded use of an ATM
(Automated Teller Machine) was in 1967 in London? While today we
can see hundreds of these machines in every major town in
Azerbaijan, at the time it revolutionized the way people accessed
their money. And now, with AI, we're poised for another monumental
leap forward.
Real-World Example: Take a glance at Singapore, where DBS Bank
has integrated AI-powered chatbots to assist customers in managing
their accounts, offering a glimpse into the future of hassle-free
banking. This is something that banks around the globe, including
Azerbaijan, are now investing into and actively using to simplify
and speed up the interaction with customer queries.
AI: Your New Financial Buddy
Artificial intelligence is no longer confined to the realm of
science fiction; it's becoming an integral part of managing your
finances. Banks are harnessing AI to offer personalized
experiences, envisioning an assistant that understands your
spending habits, aids in budgeting, and suggests tailored savings
options. It's like having a financial guru at your beck and
call!
Fun Fact: The term "Artificial Intelligence" was coined in 1955
by the American computer scientist John McCarthy. Today, AI is
becoming a trusted companion in navigating your financial
landscape.
Real-World Example: Bank of America's virtual assistant, Erica,
employs AI to provide insights into spending habits and financial
goals, showcasing how technology can serve as a valuable ally in
our financial journeys.
User-Friendly Banking Apps
Prepare for a revolution in user-friendly banking apps. The days
of grappling with complex interfaces are numbered. Banks are
investing in sleek, intuitive apps designed to make managing your
money effortless. From checking balances to transferring funds,
these apps prioritize user experience, ensuring a seamless and
enjoyable banking journey.
Fun Fact: The first mobile banking service emerged in 1999 from
a bank in Finland. Today, mobile banking is a global phenomenon,
with apps leading the charge in banking convenience.
Real-World Example: Consider the success of the Revolut app
founded in 2015 by London-based entrepreneurs Nikolay Storonsky
originally from Russia and Vlad Yatsenko from Ukraine. Revolut
Is offering a range of financial services with a user-friendly
interface, illustrating the potential for banking apps to redefine
convenience.
Contactless Everything
In the coming years, the physical wallet may become obsolete.
Contactless payments are rapidly becoming the norm, with your phone
or smartwatch poised to replace traditional payment methods. This
not only expedites transactions but also enhances security. No more
rummaging for loose change – the future is all about tap and
go.
Fun Fact: The first contactless payment was made in 1997 using
Radio Frequency Identification (RFID) technology. Today,
contactless payments continue to evolve with every tap of your card
or phone.
Real-World Example: Cities like Stockholm and London heavily
rely on contactless payments for public transportation,
highlighting the everyday applications of this futuristic banking
feature.
The Rise of Cryptocurrency
Once shrouded in mystery and volatility, cryptocurrency is
emerging as a mainstream player in finance. Banks are exploring
ways to incorporate digital currencies into their services,
offering more options for managing and investing money, with
reduced fees and faster transactions.
Fun Fact: Bitcoin, the first cryptocurrency, debuted in 2009.
Since then, thousands of cryptocurrencies have emerged, each with
unique features.
Real-World Example: Companies like Tesla now accept Bitcoin as a
form of payment, underscoring the increasing integration of
cryptocurrencies into traditional financial transactions. In 2021,
El Salvador in Central America became the first country in the
world to adopt Bitcoin as a legal tender, making it mandatory for
businesses to accept the leading cryptocurrency as a form of
payment.
Banking on Sustainability
As environmental consciousness grows, so does the banking
industry's commitment to sustainability. Expect banks to offer
eco-friendly financial products and invest in green initiatives.
Your money could contribute to positive change for the planet,
aligning your financial goals with a more sustainable future.
The actual term 'sustainable or ethical banking' refers to
financial practices that prioritize environmental, social, and
governance (ESG) considerations alongside financial returns. This
approach involves investing in environmentally friendly projects,
supporting socially responsible initiatives, promoting fair labor
practices, and adhering to transparent and ethical business
standards.
Sustainable and ethical banks aim to make positive contributions
to society and the environment while ensuring that their financial
activities align with ethical principles and long-term
sustainability goals.
Fun Fact: The world's first green bank, Triodos Bank, was
established in the Netherlands in 1980. Today, banks globally are
embracing sustainable practices.
Real-World Example: BNP Paribas, a leading global bank, has
pledged to align its financing activities with international
sustainability standards, signaling the industry's shift towards a
greener future.
Personalized Loans and Credit
The era of one-size-fits-all loans is coming to an end. Thanks
to advanced analytics and AI, banks can tailor loans and credit
options to individual needs, increasing approval rates and
designing terms with financial well-being in mind.
Fun Fact: While the concept of credit dates back to ancient
civilizations, personalized credit scoring systems emerged in the
mid-20th century.
Real-World Example: LendingClub, a peer-to-peer lending
platform, employs data analytics to personalize loan offerings,
demonstrating how technology can reshape the lending landscape.
Embrace the Change
The future of banking is not a distant dream – it's imminent.
Embrace the change, for it promises to simplify your financial
life, personalize your experience, and align with your values. From
AI-powered assistants to eco-friendly banking options, the banking
revolution empowers everyday people. Get ready for a banking
experience that's not just smart but uniquely yours.
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