During the COVID-19 pandemic, banks’ clients have changed their behavior overnight reflecting adaptations to restrictions and health and safety requirements. As a result, a rapid surge is been observed in the digital opening of new relationships, registration & usage of mobile payment applications, and usage of contactless payments accompanied by the reduction in physical client meetings. This has also urged the banks to evolve and transform their digital business models rapidly, with new circumstances. Now the banks are required to make the provision for a large number of credit facilities, adapt offerings in support of clients’ needs, introduce fast, flexible, and effective measures to keep operations and services stable.

The experience has helped organizations in identifying the transformational capabilities of digital channels and operational setups, as well as the need for new value creation from data and analytics. Let’s explore some of the digital innovations that can lead the banks through the current crisis.

1. Fraud Prevention

COVID-19 pandemic caused an increase in cyber frauds; however, with the help of powerful technologies, it can be minimized. Artificial intelligence (AI) with its real-time data analytics, can act as an early warning system to prevent credit card frauds. It has the capability to evaluate the probability of fraud, and upon the suspicion, enables to take immediate request for client feedback to clarify the legitimacy. Not just that to minimize the loss from fraud cases, Adaptive analytics through machine learning can be applied by continuously reintroducing client feedback into the data model.

2. Core Banking Services

Banks invest heavily to add value for clients, by applying advanced analytics to their portfolios and offering related tailored products, investments, and advisory services. To ensure better customer service, banks can evaluate a client’s feedback with the help of digital solutions. On top of that, digital solutions and data analytics can also be used to increase the relevance and efficiency of client communications and personalize financial services as per the clients’ needs.

3. Operational Efficiency

The surge in new relationships and the use of contactless payments during the pandemic had also increased the need for operational efficiency. In banking a large number of documentation packages are prepared for client meetings, so with the blend of the distinct data element and robotics process automation, the client documentation can be generated from management tools and archives at a high frequency. The operational efficiency can also be enhanced with the help of Optical Character Recognition (OCR) which allows intelligent classification of incoming emails along with embedded meta-data and delivery to a digital mailbox.

4. Regulatory Compliance

The rising frauds during pandemic had made it difficult for banks to comply with regulations. However, when it comes to compliance with legal and regulatory requirements, data analysis can be very helpful. Machine learning can detect deviations in client and transaction profiles. Additionally, when the needs of the client are large and complex, it involves a high level of operational risk like Anti-Money Laundering (AML)/Know Your Customer (KYC) checks, in such cases ML tools can be applied to identify issues and enhanced interactivity/visualization to translate data into insights. It also helps an organization in reducing risks and ensuring compliance with the regulations.

Apart from helping the banking system in serving customers efficiently, preventing fraud, and driving operational efficiency, digital innovation is essential to address the issue of remote working too. The pandemic has forced the banks to set up themselves to be digitally amended to reflect remote working, communication, and client service, which is leading to an increase in the number of remote working arrangements. Technology no doubt will assist the banks in the best possible way.

Banking is a metaphor for trust in society, now is the time for banks to demonstrate its stewardship, digital innovation can lead the banks efficiently though this unexpected disruption of a pandemic and post-pandemic economy. You can also reach out to us for exploring digital applications that can help in your banking business.

How Blockchain is Reshaping Banking & Finance Sectors

Commercial Banks provide a number of services to their consumers. By creating an account, users can pay bills with a slip of document. In addition, the user can send and receive money from various bank accounts. Today, more users are using mobile internet for banking service, to pay their bills. In addition, Banks providing credit cards and debit cards in the field of shopping to spend without physical money in stores, gas services, and other stores. Nowadays, the banking Industry is offering Modern Services to customers in the financial system to attract more customers. Therefore, at this point of view while entering into the advanced technology implementation in the banking system, many problems created by hackers and spammers, where hacking the accounts and misusing the Banking system.

The banking application stringently controlled in all rights, while banking sector agents identified by their conventional methods. But the wide distribution of Blockchain in the modern years, the strong popularity of cryptocurrency growth have provided with the evidence that the control of many banks and financial companies are strongly committed to implementing Blockchain technology. This made a huge demand for Blockchain Development Companies in India. In addition, presented their uniqueness to Banking Industry hold the opportunity for developing an application integrated with Blockchain technology.

Big banks are frequently handling tests of decentralized technology and performing Blockchain in marketing methods. Banks proceeded to advance in a change of plans and startups that are growing Blockchain-based services.

The Blockchain is the Remedy for Banking Services

Banks and Financial Companies can control a number of challenges with the help of Blockchain development. It has various smart features that perform it as engaging as Linux. Blockchain technology presents a high-level security in collecting and sending data, transparency, simple interface support, decentralization and low cost of operations. These impressive characteristics make Blockchain a really capable and in-demand result, even in the exceedingly traditional and controlled bank industry.

Most securities and financial systems cannot provide out their business without a character of mediators, while their support secures the services of these companies much more secure and expensive. The implementation of Blockchain will allow Banking to remove additional mediators and to present secure payment services for customers.

How Blockchain performs in Financial System?

The Blockchain technology is a shared, decentralized ledger that allows Bitcoin, Litecoin, Dogecoin, and other digital currencies to accessible, secret, and protected. The Blockchain is a database of digital money transactions called Bitcoin. Moreover, it also called as a Public ledger, to maintain the records of shared transactions, that contains metadata about the history of transactions taken place. The record is publicly available through APIs and current sites. Blockchain controls a permanent record of activities. This significantly decreases the chance and the necessary for associated mitigating actions for various asset models.

How the Financial and Banking Industry could help from Blockchain technology?

The Blockchain development services in banking connecting shared ledger and cryptography, It enables multiple individuals to become modern, and accessible for a regularly updated digital ledger that cannot be changed. Here are some points on how banks benefited.

• Fraud Detection -The applied Blockchain in banking system is maintained decentralized data, which helps to prevent hacking by Hackers and cyber-criminals, and for before banking, there is possible to bypass these protection systems and make an information leakage by well informed of emerging digital technology.
• Faster Payments – User can send and receive payments in the form of digital money called Bitcoin and cryptocurrencies, this process can be done with the help of internet connection instantly within minutes of times for 100% confirmed transaction. These transactions are unlimited, safe and mostly secret.
• Smart Contracts– Financial service is an open place to rise for the application of smart contracts. The use of smart contracts in financial transactions could advance up and analyze processes, secure the proper transfer of data and implement the duties of all parties.
• Trade Finance-Trade finance viewed as the most helpful utilization of Blockchain technology in the banking division. All the connected parties such as a compound transaction can combined with a Blockchain interface and the data can distribute by buyers, sellers, and banks with the single distributed ledger.
• Loans and Credit– Blockchain can apply for loans and credits in two diverse ways. The primary use of a Blockchain in the lending business is that – a lender can verify the creditworthiness of a potential user by a Blockchain. To solve the problem of hacking while verifying the data, companies can use Blockchain to avail the validation data.

Conclusion-

The World Financial Industries specify that Blockchain technologies will utilize by most of the banks by 2020. The extension of this technology in the business of finance creates a wide range of opportunities for best Blockchain developers. However, choosing the right Blockchain development company in India is a little bit hard. Fusion Informatics develops a secure, decentralized technology with a solid understanding of the technologies and have the experience to pull all the techniques them together.

We specialized in the custom Blockchain development of banking solutions. Whether you require software development or flawless platform evolution, we can develop it.