By Bob Eckel, CEO, Aware
The financial landscape is ever-evolving, and with signs of an economic downturn on the horizon, banks must be strategic in their approach to technology. While now might not be the ideal moment for comprehensive core transformations, it’s the perfect time for a technological facelift in specific areas to yield quick returns on investment. In this article, we explore three technologies that financial institutions should focus on to navigate today’s uncertain economic terrain: Artificial Intelligence (AI), eKYC/digital onboarding, and Open Banking/APIs.
1. AI: The Power of Voice Recognition in Chatbots
Artificial Intelligence (AI) is proving to be a game-changer for banks, particularly in the form of AI-powered chatbots that harness the potential of voice recognition. These chatbots are the 24/7 virtual banking assistants that offer swift, precise responses to customer queries. This technology not only enhances customer service but also drives efficiency and cost savings for banks. During economic downturns, when every penny counts, the ability to automate routine customer interactions is a considerable advantage.
Moreover, AI chatbots, backed by recognition, allow for natural and convenient interactions, creating a seamless user experience. Not only can voice recognition understand language, but speaker recognition can also be used to verify identities, thereby assisting customers with sensitive tasks such as balance inquiries, fund transfers, or bill payments, thus freeing up human employees for more complex, relationship-driven tasks. Additionally, these AI systems can provide real-time financial insights and investment advice, helping customers make informed decisions during uncertain financial times.
2. eKYC and Digital Onboarding: Streamlining New Account Opening
Electronic Know Your Customer (eKYC) processes and digital onboarding technologies are invaluable tools for banks at any time, but especially during a downturn. Securing and simplifying the process of opening new accounts at the same time not only reduces operational costs but also facilitates significant increases in new business. By embracing biometric verification techniques, banks can enhance security while expediting the onboarding process.
Biometric authentication, such as fingerprint or facial recognition, or even speaker recognition, adds an extra layer of security to digital onboarding, making it harder for fraudsters to exploit the system. Customers can securely submit their identification documents and complete the onboarding process remotely from the comfort of their homes, eliminating the need for in-person visits. This seamless digital experience is especially relevant when physical interactions are limited due to external circumstances, such as a pandemic, possible terrorism, or business operational efficiencies.
3. Open Banking and APIs: The Role of Biometrics in Authentication
Open Banking and Application Programming Interfaces (APIs) are transforming the banking industry by enabling seamless data sharing and interoperability between financial institutions, fintech startups, and third-party service providers. Amid economic downturns, where financial agility is paramount, the ability to swiftly and securely share financial data is a game-changer.
Biometrics, such as fingerprint recognition, facial identification, or iris scanning, play a crucial role in enhancing the security of Open Banking APIs. By utilizing biometric data as part of the authentication process, banks can ensure that data access is secured and also limited to authorized individuals only. This minimizes the risk of data breaches, fraud, and identity theft, creating a robust and secure Open Banking ecosystem.
In the face of an impending economic decline, banks must harness the potential of technology to adapt, survive, and thrive. AI-powered chatbots with voice recognition, streamlined eKYC and digital onboarding facilitated by biometrics, and secure Open Banking APIs leveraging biometric authentication are pivotal technologies for banks to embrace now. These approaches enable efficient operations, enhance customer experiences, and fortify financial security during challenging times. By investing in these biometric multimodal technologies, banks can navigate the unpredictable economic environment with resilience and agility, ensuring their continued success no matter what the near-term future holds.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Image and article originally from www.nasdaq.com. Read the original article here.