Main Digital Technologies Applied in Banking Services (Tér - Gazdaság - Ember/Journal of Region Economy and Society)

Summary

• Automated teller machines (ATMs) introduced in the 1970s marked the first major shift toward remote banking access.p.1
• Online banking platforms launched in the 1990s enabled customers to view account information and conduct remote transactions.p.1
• AI-powered chatbots and virtual assistants provide 24/7 instant customer support to resolve inquiries and automate simple transactions.p.4
• Cloud computing adoption allows banks to lower infrastructure expenses through flexible pay-as-you-go pricing models.p.6
• Software robots in Robotic Process Automation work non-stop to execute repetitive back-office banking tasks with high accuracy.p.7
• Open banking platforms use Application Programming Interfaces (APIs) to enable secure data sharing between banks and third-party fintech apps.p.8

Key insights

1. Artificial intelligence and machine learning enable real-time data processing to automate fraud detection and improve risk management.p.3
2. Blockchain technology provides a decentralized distributed ledger that enhances transaction transparency and simplifies cross-border payments.p.4
3. Smart contracts automatically execute specified terms, reducing administrative delays, transaction costs, and manual processing errors.p.5
4. Big data analytics allows banks to perform customer segmentation and deploy predictive models for early fraud detection and risk control.p.5
5. Cloud computing offers scalable infrastructure that supports real-time data processing without requiring massive fixed IT investments.p.6
6. Biometric authentication in mobile banking delivers stronger identity protection compared to traditional password mechanisms.p.6
7. Robotic Process Automation streamlines routine compliance, verification, and data entry processes while facilitating real-time audit reporting.p.7
8. Multi-layered cybersecurity strategies combining encryption and behavioral threat detection are necessary to mitigate expanding digital risks.p.7
9. Open banking APIs foster collaborative ecosystems between established banks and fintech startups to accelerate service innovation.p.8
10. Central bank digital currencies (CBDCs) and super applications are projected to significantly transform payment networks and digital access.p.10