+ 44 20 8144 3706Introduction:
The banking industry is the one of the fastest growing industry in the UK. In the present research study, four plausible trends with respect to the banking industry are identified and out of these four one most plausible trends are finding out. Four plausible trends identified are analytics, mobile app, BI and IOT. Out of these three BI is selected. In the first section of the report, all these three plausible trends are discussed. In second section of the report, chosen plausible option is justified and its advantages are discussed. At end of the report, conclusion section is prepared.
Plausible Scenarios:
In current time period, pressure is seen in every business sector or industry. Due to poor global economic conditions and corona effect business firms are focusing on adoption of advanced technology so that accurate decisions can be taken in the business and cost can be reduced in the same. The banking sector is also facing lots of challenges in its business. With the passage of time many new banks open in the nation and large population is added to banking sector and due to this reason it become hard for banks now to create new customers and retain old one (De Meijer., 2016). Workforce also failed to deliver the desired results and due to receipt of fewer requests for debt banks find it difficult to bear high HR costs in the business. Adoption of digital technology assists firms to control HR cost and make effective use of HR in the business. Some of the plausible trends that will be seen on a large scale in banking sector in the upcoming years are given below.
• Analytics: In the current time period UK Government is also laying down emphasis on adoption of analytics in the business. The UK Government is also using analytics to make decisions (Maffey and et.al., 2015). By using analytics reports are prepared and customer segmentation is done by using cluster analysis technique. Customer segmentation assists banks to take accurate business decisions considering their spending behavior. By using analytics banks make predictions about their performance on multiple fronts like NPA, etc. Thus, by taking action on time firm can improve its condition in the near future and control elevation of the NPA in the business. By using prescriptive analytics banks identify steps they must take to improve their condition. Analytics also assist banks to detect fraud. Using analytics banks are able to predict customer behavior and find out suspicious spending patterns. On real time basis, the bank receives an alert (Harvey, 2016). There are a number of capital intensive industries where already analytics were adopted in large scale because it assists them to make more accurate decisions. With the passage of time many new technological developments are happening in the analytics domain and many new start ups comes into existence which are doing innovations in the technology (Raskin and Yermack, 2018). Hence, it can be said that in the upcoming time period technology development in respect to analytics domain will happen at fast pace.
• IOT: Currently, majority of banks did not adopt IOT in their business. Data related to customers that is available through IOT to the banks will assist financial institutions to find out their value chain like suppliers, retailers and distributors. Availability of customer’s info will assist banks to provide value added services, financial assistance and customized products which prove beneficial for banks and their customers both. By using IOT banks can predict fraud in debit and credit card transactions. By using IOT sensor device installed at borrower warehouse bank can identify inventory. By making use of tracked data bank can ensure that debt is paid when inventory is sold.
Conclusion:
On the basis of the above discussion, it is concluded that UK banking industry going through a transition phase. Technology changes are happening in the firm business at a rapid pace. Three plausible trends are mobile apps, analytics and BI. Out of all these plausible trends BI is the best plausible trend out of both. This is because by using BI technology at more granular level decisions can be taken by the banks at their branch level and can steps to improve their business performance. Hence, it can be said that BI technology has great use for the banks.
References:
Books and Journals:
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Comunian, R., Faggian, A.. and Jewell, S. 2015. Digital technology and creative arts career patterns in the UK creative economy. Journal of education and work. 28(4). 346-368.
Cortet, M., Rijks, T.. and Nijland, S. 2016. PSD2: The digital transformation accelerator for banks. Journal of Payments Strategy & Systems. 10(1). 13-27.
Dapp, T.. and Slomka, L. 2015. Fintech reloaded–Traditional banks as digital ecosystems. Publication of the German original. 261-274.
De Meijer, C. R. 2016. The UK and Blockchain technology: A balanced approach. Journal of Payments Strategy & Systems. 9(4). 220-229.
Dow, S. 2019. Monetary Reform, Central Banks, and Digital Currencies. International Journal of Political Economy. 48(2). 153-173.
Harvey, D. 2016. Digital transformation in banks: The trials, opportunities and a guide to what is important. Journal of Digital Banking. 1(2). 136-145.
Hornuf, L. and et.al. 2020. How do banks interact with fintech startups?. Small Business Economics. 1-22.
Kazan, E. and et.al., 2018. Disentangling digital platform competition: The case of UK mobile payment platforms. Journal of Management Information Systems. 35(1). 180-219.
Kehoe, K.. and Mateer, J. 2015. The impact of digital technology on the distribution value chain model of independent feature films in the UK. International journal on media management. 17(2). 93-108.
Maffey, G. and et.al., 2015. Digital technology and human development: A charter for nature conservation. Ambio. 44(4). 527-537.
Parise, S., Guinan, P. J.. and Kafka, R. 2016. Solving the crisis of immediacy: How digital technology can transform the customer experience. Business Horizons. 59(4). 411-420.
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