There are many opportunities and challenges that could change the banking world, especially for their employees. In some sense 2018 has the potential to be a year of great expectations for the banking industry. There are many socio-economic factors which will influence this change in the banking industry. Demonetization, Bitcoin breakout, Integration of Machine Learning and Artificial Intelligence, are some clear game-changers responsible for the change in the banking industry in 2018. In terms of challenges, many external threats will affect the financial services ability to stay competitive.
Some predictions and possibilities for the banking industry in 2018.
Secure Payment Getaway, with the linking of the Aadhaar card with our bank accounts there will be an increased attention towards advanced security. With more people opting for the digital transaction there will be added pressure on making the payment gateway more secure. In the year 2018, you will see banks focusing on building firewalls and secured gateways not only to protect the details of their customers but to also protect any kind of malicious attacks on their servers.
The flexibility of Making Payments, the way banking was done a decade ago is changing drastically, Fintech firms are working on creating platforms where advanced banking technology can be used while performing transactions. We can sense the effect of this already with the introduction of apps and mobile wallets like BHIM App, TEZ, PayTM, all these have already made the life of the common man way easier.
Along with these wallets, money transactions made across borders has become much easier. So traveling, shopping or simply sending money across the border, has become secure, faster and convenient for the common man.
Mitigating Money Laundering, irrespective of public sentiment, due to demonetization, there has been an incline in the digital transaction. The expectation from the coming year is that banks will bring in more transparency in payment details and source of income.
An expectation of greater profit margins in Investment Banks, all the investment is done in technology and control staff is expected to create a plateau effect, with greater incremental margin in 2018. So as banks bask in the glory of higher profits from past investments, they will definitely secure their hiring and pay market.
The Bitcoin impact will be witnessed greatly in the year 2018. This year will open doors for Bitcoin jobs to enter the investment banking space. In spite of all the controversies and apprehensions, institutions like Goldman Sachs, are looking forward to setting up their very own Bitcoin trading operations. Hence anticipating a start to something new and big for the banking sector.
Integration of the Digital Economy, advances in technology will have a direct impact on the way the banking section functions. There will be a change in its hiring, and organisation structure too, as new requirements will have a new designation, and expertise to perform the said task. There will be several digital advances which will make it possible for the banks to provide services to unserved audiences, specifically in economies like ours. There will be many advantages due to this development, simplified engagement and lower costs, the movement from paper to digital is a win-win for both the banks and the consumers. Technology will also impact the global money movement due to enhanced customer reach.
Machine Learning and Artificial Intelligence will transform the way jobs are performed, more so in investment banking. There is a fear that most jobs will be lost to automation, however, that is not possible this early in the versatile banking sector. It will be the rudimentary exchange which will not require human intervention. In addition, there are many benefits of AL and ML in the Financial sector, the ability to anticipate, predict and thus respond to specific customer needs.
So in the year 2018, the change in financial services will be more pronounced. Customer expectations will be very high, digital innovation will change the way we think and hence will also change customer expectations. The banking industry will be all about value creation. Transformation and adaptation to change will be the mantra for 2018 for the banking sector.