If you’re like most people, you don’t think about the banking technology that allows you to check an account balance on an app, deposit or withdraw money or make a payment with ease but it influences so much of your financial life. But just as technology has changed most of our habits in a few short years, financial institutions are also deciding it’s time to ensure they too have modernized platforms. Ultimately, it’s the faster, easier and cheaper path to delivering the innovative tools and on-demand access you need to manage money on your terms.
How banking technology impacts you
You don’t see what happens behind the scenes at your bank and you certainly don’t pick your bank based on its core banking platform. You ultimately choose a financial institution because of the things it empowers you to do in your financial life. Yet core banking technology drives how quickly, smoothly and conveniently you can access, move and manage your money. It’s at the center of your relationship with your bank.
Fortunately, the same type of application programming interface (API) technology that allows you to log in to a website with your social media credentials has also allowed financial institutions to innovate. For the foreseeable future, a “bolt on” innovation strategy is keeping banks competitive, but the fact that we’re seeing more and more financial institutions move to a more modern style of banking platform hints to what the future may hold.
Here are three signs your bank may be moving towards a modernized platform and what it means for you.
1. Data becomes a benefit to you
Digital is the new way of life, but data plays a crucial role in how relevant that experience is for the user. One of the key pillars of modern banking is a data strategy that gives your bank the capability to easily leverage, move, collect and secure data so it can be used for mutual benefit. If your bank previously offered generic promotions that didn’t apply to you, but now they’re starting to deliver you personalized and relevant advice and offers, it’s a likely sign that your bank is upgrading and improving its technology. This will benefit you as a customer, and simultaneously benefit the bank as a business. Win-win.
In turn, you should see those messages become even more relevant over time. For example, your bank can take data like whether you clicked on a message in the morning and keep refining the types of offers you’ll see every morning thereafter. Eventually, your bank’s technology will help it accurately apply your data to ensure that every message you get offers an appealing solution to a real need you have, in the here and now.
2. You can always pick up where you left off, in any channel
When you can hang up the phone with a customer service representative at your bank and log into your app to pick up right where…