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How Recent Technological Advancements Such as AI, Cloud, Blockchain, IoT, Big Data And AR/VR Among Others have Transformed Mobile Banking

By Ronaldi Laksana, IT Group Head - Digital & Front End Solutions, PT Bank Danamon Indonesia, Tbk

Ronaldi Laksana, IT Group Head - Digital & Front End Solutions, PT Bank Danamon Indonesia, Tbk

Mobile Banking is no longer perceived as only a tool or just a banking app for most people. In today's digitized world, mobile banking serves multiple purposes to fulfill the financial needs of customers at different level, across generations.

Services that cater to the current lifestyles include making payments applicable both for business and personal, managing financial and investment plan, which are now getting more realised at an earlier age wrapped in the form of gamifications to entice them, personalized marketing products with bot assisted queries/transactions for more convenient and easier ways that enrich the customer experience and create a stickiness factor.

Banks are in the era of borderless opportunities despite the wider market competition with financial technology companies offering similar but yet incomparable products on the B2B2C segments. For some, selecting the right technology innovations to complement bank's mobile products must be aligned with its target business model to hit the right spot.

One of the most viable technology a bank would rather consider is the enablement of its analytic capability and big data, exposing not only internal but also secured external data. When it comes to individual mobile experience, we tend to be surprised on how our needs or even intentions are being relevantly addressed by an application. Similar approach are applicable with mobile banking, having the ability to know customers’ profiles upfront and relevantly address their financial needs can bring ‘a wow’ factor on its own. All of these capabilities would distinguish one mobile banking product, creating a unique and unforgettable customer experience. The complementary use of AI supported by rich Big Data analytic capability of the bank would be the most ideal solution one can accomplish. Giving the right customer information ahead of time before even being asked or queried will also take the bank one step ahead of the game.

IoT matches up our everyday lifestyle, only everything is being smartly and intelligently done through technology. What does it have anything to do with mobile banking? The answer is ‘a lot’. One of the examples are chatbots supported by smart AIs which some big banks have already provided voice assisted and/or mobile chat assisted solution to simplify banking activities for their customers. 

. Another example is how financial transactions are intelligently integrated through APIs with smart home devices with simple initiation through voice or mobile phone which is made available by some banks in the US where these services were integrated with smart home device such as Alexa, Googlehome, etc.

Although Blockchain technology in Banking today are still at the early stages, this distributed ledger approach would bring greater opportunities when global banks are networked with common business rules. Some banks enable crossborder payments and featured on their mobile banking allowing real time basis transaction, which in a way help reduce the cost of processing. Others utlize it for managing smart contracts on trade finance business, providing more reliable and much faster turn around time. With Blockchain, it’s all about global collaborative and network to make it happen.

The capability of enabling new technology or solution faster to the market is one crucial factor for banks. This will gain better opportunity should the solutions are not yet available in the market. Hosting the technology stacks on cloud is very much the right option for allowing faster and more flexible ‘time to market’ competition. Cloud nowadays provides not only the infrastructure framework, but also the functions that might be needed by an organization. One obvious benefit is a more rationalized technology investment, ability to minimize the need of managing capacity, and other technical specification required. All of these can be addressed through Clouds.

Advanced use of Virtual/Augmented Reality also overwrites the old and traditional way of customers’ banking experience. They create more excitement and joyfull experience to most. Many banks have introduced this capability on some of their products, i.e. oversee projected future of customer’s investments, taking customers into the view of digital banking experience, simplify process of real-time mortgage application based on property captured through mobile’s camera and GPS location, and many others. As technology advances, VR/AR will take customer experience to the next level.

At the end of the day, mobile activities cannot be detached from one’s lifestyle where an essential part of it is enabling banking needs to create better experience showcasing nothing but advantages for both the bank and its customers.

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