Microsoft predicts that digital banking, big data analytics, and cyber security will be the three key priorities for companies operating in the banking and financial services sectors in 2015.
According to a recent study by the British Bankers Association, almost 2.3 million people aged between 70 and over 100 years old already use internet banking, while more than 450,000 customers over 60 use banking apps on mobile devices.
Microsoft predicts that more customers will use online banking services in 2015, as banks begin to add more interactive interfaces to improve the user experiences and better merge the real and the virtual aspects of banking. Plus, a growing number of banks will adopt social media and collaboration technology to improve the interaction between customers and employees.
Meanwhile, more banks and financial institutions will invest in technology to harness the benefits of big data analytics and cloud computing to better understand and predict customer behaviour.
Microsoft predicts that these organisations will use cloud-based big data solutions to better understand market trends and potential investments, as well as to calculate risks, drive better decision making and offer customers specialised promotions and services.
“As we reinvent productivity at Microsoft we’re helping businesses to use data to their full advantage and this includes building tools that are more predictive, personal and helpful,” said Marcelo Marquez de la Garza, director of Worldwide Financial Services at Microsoft, in a blog post. “This is the year when big data will move from something people are trying to define, to a transformative tool with the combination of the cloud and cutting edge predictive analytics.”
In addition, higher-than-average customer churn rates and increasing costs will force banks and other financial institutions to ramp up security efforts to ensure they can respond to cyber threats and attacks more quickly.
This year, retail, credit and banking organisations will need to strengthen their partnerships to ensure that the links between POS and banks are more secure.
This October will see the launch of the Europay MasterCard and Visa (EMV a new global standard for cards equipped with computer chips and the technology used to authenticate chip-card transactions. This is designed to protect consumers and reduce the costs of fraud for banks and merchants.
From October, any merchants using non-EMV compliant devices to accept transactions made with EMV-compliant cards will automatically assume liability for fraudulent transactions. Microsoft predicts that the new compliance requirement will prompt both retailers and banks to invest in more modern card technology and POS devices.
“2015 has the potential to be a turning point in the banking sector, while the potential that digital, analytic and security technologies has is unmatched by the impacts to both the corporate balance sheets and customers,” said Marquez de la Garza. “At the core of these three pillars of technological investment is a focus on driving operational efficiency, better understanding the customer, and protecting data, intellectual property and the financial well being of our economy and its citizens.”
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