The most notable technologies that will influence banking greatly

As the name suggests, innovation in technologies is a vital part of the Fintech sphere. There’s no arguing with that: Maxpay and our counterparts from the industry use technological advancements to better our services and customer experience. 

That’s why our team also follows the latest news from the innovation world, to know what’s coming next and which technologies might be of use for banking. 

That’s what Maxpay’s CEO Artem Tymoshenko talks about in his new article for Forbes Finance Council “Three developing technologies that will change the banking industry”. We recommend reading the full article, so you know how banking will improve for customers and merchants alike, and in what way the technologies are used in finance. Meanwhile, we share some of the insights from it.

5G will be a huge thing for the development of banking and other technologies 

The global deployment of 5G has been going on for a couple of years now and brings many benefits to lots of industries thanks to its high speed and low latency. This means that transactions and other operations can become even faster and smoother – not only for e-banking but for in-branch services and stock exchange as well.

Not only that, but other technologies (some mentioned in the article) will get their boost from the 5G speed and a grand amount of data that will be generated thanks to it. The technologies are:

• Virtual reality (VR);
• Augmented reality (AR);
• The internet of things (IoT);
• Arteficial Intelligence (AI);
• Machine learning.

The number of more tech-savvy consumers grows – banking can become more interactive  

Enhanced by 5G, AR, and VR technology can be used more widely among banking clients in the future. You see, AR and VR can bring the element of better immersion and interaction, making the industry more entertaining and client-oriented. 

Another important factor these two technologies can improve about banking industries is accessibility: from making AR-based notes and tutorials to explain banking operations, to even creating virtual banking branches when VR is more widespread. 

Machine learning is and will remain a valuable instrument for banking advancements

Fintech companies already use machine learning to detect risks and fraud, which is a vital feature when you are working with hundreds of merchants. Thus, we have no doubts, that this technology will continue improving and prove useful to Fintechs and banks alike.

Once again, the increase of data flow, prompted by 5G, will allow machine learning instruments to detect more suspicious actions and up their fraud protection game even more. 

And risk management is a big issue now, as well as in the future of banks and PSPs. It is expected, that in 2027 the worldwide payment fraud losses will reach $40,6 billion, and last year was filled with fraud-related losses as well. Read more about the security state of financial services and how merchants can protect themselves from chargebacks in our previous blog post.