Banking is an integral sector of Australia’s economy. Banks extend loans to people to facilitate their businesses, mortgages to buy houses and offer savings accounts at interest. Banking offers liquidity of money, thus placing it at the centre of our day-to-day transactions. It’s through technology that banks can achieve all these functions.
The Australian banking sector has been undergoing rapid technological changes. This article will discuss technologies that top Australian banks use to achieve their objectives.
Mobile Banking
Back in the day, people stood in long queues to withdraw and deposit money. Today, you can access your bank account 24/7 at the convenience of your home.
All you need is an app to get started. Mobile banking services include loans, insurance, stocks, mutual funds, and fixed deposits.
As of 2021, over 80% of Australians preferred to check balances, transfer money, or pay bills using online banking. An analysis conducted by the Australian Banking Association further backs this claim as more customers are shifting towards mobile banking.
Online gaming sites in Australia have also embraced this wave. Players can now enjoy online casino banking options from Australian sites, which offer an array of alternatives.
Gaming enthusiasts in Australia can now make deposits and withdrawals in their gaming accounts using direct bank transfers, and credit and debit cards without exiting the site.
Cloud Computing
Banks initially relied on physical servers to store, operate and organise data. However, these servers were costly and susceptible to failure and power outages.
Cloud computing has become the go-to technology for big data, and many corporations and banks have jumped on the bandwagon. A good example is the National Australia Bank (NAB), which has a multi-billion deal with Amazon Web Services (AWS) to help them with Cloud migration.
Banks can now access data and computing services over the Internet (the cloud). Cloud computing has had a massive impact on banking in several ways;
- Reduced cost of constructing and maintaining costly server centres.
- Cloud computing has provided robust security infrastructure to cushion banks from cyber attacks.
- Banks have access to real-time data and analytics from different locations.
Artificial Intelligence
There is no doubt that artificial intelligence has taken Australia by storm. Banks are relying on artificial intelligence to automate complex tasks.
AI algorithms are used to analyse big data to predict future market movement. This helps banks in risk management.
Australian banks are using AI to mitigate fraud. AI algorithms are trained to identify transaction patterns that may be fraudulent. Banks like Commonwealth Bank of Australia (CBA) are leveraging the AI-powered Virtual Assistant to help customers get timely responses.
The AI chatbot is another conversational application programmed to understand customer questions and respond to them in a human-simulated language.
Blockchain
Blockchain is a technology that enables banks to share information securely and transparently. They work as databases whereby different transaction blocks are linked cryptographically.
Blockchain has enabled banks like NAB to accept digital currencies such as Bitcoin. This means that customers and banks can complete many transactions quickly.
Blockchain has built-in cryptographic protection that helps banks in customer verification. Also, it has allowed banks to combat cyber attacks such as Distributed Denial-of-Service (DDoS).
Open Banking
To improve customer experience, Australia passed the Consumer Data Right (CDR) legislation in 2019 that enables customers to share their data with third parties.
Open banking is a system that allows financial data to be securely shared between banks and third-party service providers by using application programming interfaces (APIs). APIs are software that would enable two applications to communicate. One acts as a client, and the other as a server.
The APIs analyse a customer’s transaction data to ascertain the best financial products and services for them.
Macquarie Bank is an excellent example of banks that has leveraged open banking. It allows customers to share their banking data without giving a third party their login details.
Hyper-personalized Banking
Customer experience is the new driver of banking. Banks such as NAB, CBA, HSBC and ANZ are designing digital banking systems that meet individual customer needs.
Hyper-personalisation ensures customer loyalty and improved engagement. Some personalisation services include card-linked services, financial advice and personal financial management.
Video Conferencing
As interactions move online, video conferencing is gaining popularity among customers. This has made many Australian banks offer one-on-one video sessions, especially with customers who live in remote areas.
Customers can contact bank personnel online to get the assistance they need. Video conferencing is also used by bank personnel for team meetings, demos, webinars, and interviews, among others.
Metaverse Banking
Metaverse is an emerging technology that allows people to interact in virtual space. More than half of Australian banks have invested in this technology. Customers can now visit banks virtually and get the full banking experience.
To get started, a customer must log in, embody their digital avatar, and access financial services. Although this technology is still young, its demand keeps growing daily.
Conclusion
Undoubtedly, technology has brought a paradigm shift in the banking sector. These technologies have enabled banks to meet changing customer expectations and scale up their service delivery.
These technologies have also given banks a competitive edge against fintech companies that use technology extensively.
