Meirav Peleg Landau
The Insurance and Banking Tech Roadmap: What's Here, What's Coming, What's Next
A few obvious points: The world of technology is constantly evolving, and keeping up with the latest advancements is more important than ever. For banks and insurance companies to remain competitive and meet the evolving needs of customers, they need to remain current with technological advancements.
Our aim in this article is to examine the three levels of technology that insurance companies and banks need to implement: immediate, 2 years from now, and long-term. We will explore the technologies that are already widely adopted, those that are expected to become more prevalent in the near future, and those that are not yet widely adopted but may become so in the future. Identifying these technologies and their potential impacts on the industry can enable insurance companies and banks to adopt the right technologies at the right time.
Today: Immediate Technologies
These are technologies that are widely adopted and are used by insurance companies and banks today. If you are not there yet, you must hurry up. Those technologies are the foundation, and every insurance company or bank needs to be aware of them. Here are a few examples:
Cloud computing: provides secure and efficient data storage and processing.
Mobile banking and mobile apps: allow customers to access their accounts and conduct transactions from their smartphones.
Data analytics helps companies to analyze data and identify trends and patterns to improve customer service and identify potential fraud.
Payments: Digital wallets (such as Apple Pay, and Google Wallet), Mobile payments, Online banking and bill pay, Payment gateways, and APIs. All allow customers to make payments seamlessly.
Robotic Process Automation (RPA): refers to a technology that allows organizations to automate repetitive and routine tasks. In the insurance industry, RPA can be used to automate tasks such as claims processing, policy administration, and underwriting, allowing employees to focus on higher-value tasks that require human judgment and expertise.
Digital forms: refer to electronic versions of paper-based forms that are used to collect information and data. By adopting digital forms, insurance companies can streamline their processes, improve the customer experience, and reduce operational costs.
Tomorrow: A Year From Now
These technologies are expected to be widely adopted in the next two years. Don’t be confused: you need to start talking about them, scouting and validating them according to your needs, today, in order to start implementing them a year from now. Here are a few technologies to check:
Artificial Intelligence and Machine Learning: to automate repetitive tasks and improve customer service
Blockchain: to improve security, transparency, and efficiency in record-keeping and transactions
Biometric authentication: to improve security and convenience for customers
Internet of Things (IoT): to gather data from connected devices to improve risk assessment and pricing
Environmental, Social, and Governance (ESG): Companies are evaluated based on factors such as carbon emissions, workplace diversity and equality, and ethical business practices. By incorporating ESG principles into their business strategy, insurance companies can enhance their reputation, attract more socially responsible investors, and reduce risks.
Beyond: Long-term Technologies
These technologies are not yet widely adopted by insurance companies and banks but are expected to be in the future. To remain competitive, it's essential to possess the knowledge and strive to think creatively.
Quantum computing: to improve security and efficiency in the data processing
Virtual and Augmented Reality: to improve customer service and training
5G networks: to enable faster and more reliable data transfer
From cloud computing to mobile payments, the technologies discussed in this article are already widely adopted and are used by insurance companies and banks today. However, it's important to also look ahead and understand the technologies that are expected to become more prevalent in the near future and those that are not yet widely adopted but may be in the future. By staying current with technological advancements and being proactive in adopting new technologies, insurance companies and banks can remain competitive and meet the evolving needs of their customers. It's essential to stay informed about new technologies, be aware of the trends and be ready to adapt as the industry continues to evolve. Only by doing so, organizations can make sure they are not left behind in the tech era.