Hello, dear readers! I'm so excited to share with you some amazing insights on how the banking industry is undergoing a radical transformation thanks to the power of artificial intelligence (AI), blockchain, and biometrics. There's a powerful post shared by @taskmaster4450 that really opened my inner mind about how blockchain is going to bring back trust. Centralized entities has really played with our trust. Here's a new beginning, 'blockchain'. These technologies are not only changing the way we interact with our money, but also creating new opportunities for innovation, security, and customer satisfaction. In this blog post, I will explore how AI, blockchain, and biometrics are reshaping the future of banking and what it means for you as a consumer and an investor.
AI: The Smart Way to Bank
Fintech, investment businesses, commercial banks, and retail banks are all undergoing digital transformation as a result of AI. Banks may use AI to personalize information, investments, and next-action suggestions for their clients while also better safeguarding their customers' accounts, securing payments, and increasing return on investment. Fraud detection, portfolio optimization, and sales and marketing enablement were among the top use cases for AI identified in the NVIDIA "State of AI in Financial Services" study of C-suite executives, managers, developers, and IT architects in the international financial industry.
By automating the handling of insurance claims, enhancing call center operators with speech recognition for call transcription, and performing other labor-intensive tasks, AI can help banks lower operational expenses. A McKinsey analysis claims that across more than 25 use cases, AI technology can increase sales by up to 34% and cut expenses by up to 22%.
AI is a tool that banks may use to increase productivity and profitability, but it can also be used to gain a competitive edge and develop new products. According to a Forbes report, 83% of financial industry respondents concurred that AI was critical to the future success of their firm. Furthermore, one in three financial experts think AI will boost their company's annual revenue by at least 20%. Robo-advisors, which offer automated financial advice based on algorithms and data analysis, ChatGPT, a language model that uses natural language processing and machine learning techniques to comprehend and produce human-like responses to user inquiries, and Biometric authentication, which uses facial recognition, fingerprint scanning, or voice recognition to verify users, are some examples of cutting-edge AI products in banking.
Blockchain: The Trustless Way to Bank
By establishing a decentralized ledger that records transactions without the need for middlemen or centralized authorities, blockchain technology is another innovation that is transforming the banking sector. Blockchain enables transactions across borders and currencies that are quicker, less expensive, and more secure. Making transactions traceable and verifiable promotes better financial system accountability and transparency.
Additionally, blockchain can make it possible for hitherto impractical new business models and services. Blockchain, for instance, enables tokenization, which turns physical assets into digital tokens that can be traded on blockchain exchanges, smart contracts, which execute automatically based on predefined rules and conditions, and peer-to-peer lending platforms, which connect borrowers and lenders without the need for middlemen.
DeFi (decentralized finance), which refers to a variety of financial services that are constructed on top of blockchain networks like Ethereum, is one of the most promising uses of blockchain in banking. DeFi offers more open, inclusive, and democratic financial solutions as an alternative to established financial institutions. Stablecoins,(cryptocurrencies pegged to fiat money or other assets), lending protocols (platforms that let users borrow or lend cryptoassets), decentralized exchanges (platforms that let users trade cryptoassets without middlemen), yield farming (methods that let users generate passive income by supplying liquidity to DeFi platforms), and NFTs (non-fungible tokens that represent particular digital assets) are a few examples of DeFi services.
Biometrics: The Secure Way to Bank
Biometrics is another technology that is transforming the banking industry by providing a more convenient and secure way to authenticate customers' identities. Biometrics refers to the use of physical or behavioral characteristics such as fingerprints, facial features, voice patterns, or iris scans to verify a person's identity. Biometrics can help banks enhance their security measures by preventing fraud, identity theft, and cyberattacks. Biometrics can also improve customer experience by reducing friction and hassle in accessing banking services.
To produce more sophisticated financial systems, biometrics can be combined with other technologies like blockchain and artificial intelligence. For instance, biometrics can be used to authorize payments using voice recognition or iris scanning, unlock mobile banking apps using facial recognition or fingerprint scanning, and verify users' identities on blockchain platforms using digital signatures or encryption keys.
For instance, biometrics can enable contactless payments by enabling users to authorize purchases using their face or fingerprint. By letting users log in to their accounts using their voice or eye, biometrics can also facilitate seamless access to online banking.
By enabling banks to recognize consumers and provide specialized advise and offers, biometrics can also enable customised services.
Thales (https://www.thalesgroup.com/en/markets/digital-identity-and-security/banking-payment/cards/biometrics-in-banking) is one of the businesses advancing biometrics for banking. Thales provides a biometric payment card that combines a fingerprint sensor with an EMV chip. Customers can authenticate themselves using their fingerprint instead of a PIN or a receipt with Thales' biometric card. The biometric card from Thales offers increased security and privacy while working with current payment terminals.
NuData Security's solutions can also verify users by matching their behavior patterns with their profiles.
NuData Security works with some of the largest banks in North America, such as Royal Bank of Canada, Bank of Montreal, and USAA.Another example of biometrics in banking is NuData Security (https://nudatasecurity.com/), which provides behavioral biometrics solutions that analyze how users interact with their devices and online platforms. NuData Security's solutions can detect fraudsters by identifying anomalies in user behavior such as typing speed, mouse movement, device orientation, and location.
The Future of Banking is Here!
As you can see, new opportunities for innovation, security, and consumer delight are being opened up by blockchain, biometrics, and AI. Not only are these technologies altering how we bank today, but they are also changing why we bank.
They are giving us the tools we need to manage our money, access better goods and services, and have a more enjoyable and fulfilling banking experience. We are getting a preview of our banking tomorrow. Banking is now in its future!
If you enjoyed this blog post, please share it with your friends and family who might be interested in learning more about the future of banking. Also, don't forget to subscribe to my newsletter where I will share more insights on how technology is transforming our lives. Thank you for reading!
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There is a lot of opportunities in Blockchain and this has also helped in business, banking and finance