By Jennifer Lunde
Increasing reliance of financial service providers on technology brings forth greater potential for inaccurate data, inconsistent reporting, and system glitches that could pose risks for bank operations, strategy, and reputation. As such, changing technology platforms are quickly emerging as a primary challenge facing banks. More specifically, these technologies can include the emergence of mobile banking interfaces, evolution of technology-oriented marketing platforms (such as social media tools), and development of new technology platforms like cloud computing.
Chief among emerging technologies in the financial realm are mobile banking applications and online banking interfaces. These platforms provide opportunities for smaller, local banks to compete with larger financial institutions and maintain relationships with customers beyond the local vicinity. That being said, banks will need to place an increased focus on app development and maintenance, as banks will risk client loss if customers are frustrated with poor app performance.