Business

COVID-19 Pandemic: Banks are Part of the Solution

Banks must look beyond the pandemic and use this crisis as a basis to reimagine their role in the new reality that awaits. As thoughts turn to a world beyond the immediate crisis, strong and secure bank integration will be needed for a strong recovery. Banks will need to focus on customer needs while driving efficiency and building resilience.

What is Bank Integration?

Bank integration is a multifaceted process in which cross-border banking activities are synchronized with the cross-border flows of banking assets. As regulatory agencies and technology have advanced, barriers in the banking sector have steadily lowered. As a result, global banking services are now less costly.

While the banking industry has made significant technological advances, it has a long way until it is fully integrated globally. Thus, here are a few technologies to assist bank integration:

  • Application Program Interface (APIs): These programs are known for their speed, personalization capabilities, and versatility. The majority of full-stack banks integrate their systems through APIs. It is especially challenging to implement API during partnership mergers. It takes time and effort to negotiate such partnerships, which might involve price discussions, revenue sharing theories, and more. This can stall API implementation.
  • Cloud Computing: Moving operations to the cloud has had a positive impact on the banking sector. A cloud platform is ideal for harnessing, analyzing, and processing the vast amounts of data associated with artificial intelligence. It is also essential when banking services begin implementing data analytics to optimise the performance of customer-based activities and internal organization processes.
  • Digital Account Opening: Many banks are deploying digital account opening technology, while others are upgrading their existing systems. A critical aspect of this technology is determining how to get the process right. As banks adopt digital technologies, regulations must be eased to allow customers access to portals. Banks need to ensure that compliance protocols that ensure ‘identity verification’ are robust and compliant when auto-filling forms.
  • Artificial Intelligence: Artificial intelligence (AI) encompasses a wide range of technologies, including the Internet of Things (IoT), and Natural Language Processing (NLP). Each of these technologies helps a financial institution improve its operations. Banks leverage AI to strengthen customer processes.
  • BlockChain: A system of decentralized financial management that allows access to multiple computers simultaneously. Using blockchain technology can significantly reduce bank operational costs. It helps banks achieve their goals surrounding payments, remittances, and traceability. In a networked environment, data sharing procedures are streamlined.

To Conclude

Globally, corporate activity due to the current global crisis has increased the need for international financial services. The banking industry must critically evaluate existing banking structures and ensure they are aligned with international policies such as foreign exchange or cash flow management. This solid foundation will ensure that new platforms are well set up for bank integration.