According to a survey by public relations firm Edelman, customers trust the technology far more than they trust banks or other financial services. Trust ranks last in the financial industry even after the media industry.
Less than half of the people trust banks. Now the question is how technology can help to improve the situation and help the banks to gain the trust of their customers.
Since the 2008 global financial crisis, banks are trying to gain trust and improve the financial system. But its very hard to regain trust when a single error can destroy all the hard work.
What are the possible solutions and how technology can help the banks:-
Fraud Detection: – Frauds have become a big concern for the banking industry. Digitization has helped a lot to cybercriminals to commit frauds. Banks need updated tools and systems to deal with them. Predictive analytics, Data mining and secure payment options are few tools which can help the banks.
Customer acquisition & retention: – Predictive analytics can help in the process of identifying the high-value customer segments. Predictive analytics is a technology that learns from experience or data to predict the future behavior of customers. Based on a report, it was seen the banks that adopted predictive analytics had an increase of about 10% in new customer opportunities over a year.
This technology can also help the banks to discover the churn patterns and get an insight of why they left and make strategies for the future customer retention.
Secure digital payments: – Providing a secure digital payment method is a major responsibility of the banking sector when the volume of digital transactions have become almost $600 billion US dollars last year.
Fortunately, banks are trying hard to come up with new technologies to provide a completely secure payment method. A lot of fintech companies are also helping banks in that area and payments is the largest sector where the fintech companies are helping a lot to the banks.
DizziPay has come up with an innovative payment method where customers do not have to share any information with merchant to pay for their goods and services. A virtual card generates every time a customer makes a transaction which will be valid only for a particular transaction. So, in this way customers are secure even if the data get compromised on the merchant side.
Written By Pankaj Arora CEO