There are many incredible benefits of edge computing for banks. Discover what they are in this blog.
Financial institutions, such as banks, know that innovative technologies are useful in providing quality services. Technologies like artificial intelligence (AI), application programming interface (API), and blockchain are unlocking new opportunities for tailored customer experiences.
But the thing is, these technologies require processing huge volumes of data, which may result in lengthy delays. Here’s where edge computing can play a significant part.
If you’re in the banking business, it’s high time you explore what edge computing has to offer. Read on as we drill down into the benefits of edge computing for banks.
What is Edge Computing?
Edge computing is a computing paradigm that processes data closer to its source, enhancing response times and providing a smoother experience. A promising technology for the banking sector, edge computing can be combined with other technologies, such as 5G, cloud, and AI.
5 Benefits of Edge Computing for Banks
Without a doubt, edge computing can bring significant impact to businesses. But how exactly can it help the banking industry? Let’s take a look at the edge computing benefits for banks in this list.
1. Data Security
Banks process massive volumes of data daily. For instance, banks manage thousands of ATM data in various locations as well as personal transaction records.
Typically, when a customer reports a fraud, the case is sorted only afterward, increasing the risk of financial loss. It’s different with edge computing — the complaint’s video feedback is taken and analyzed instantly, requiring little to no human intervention.
Edge computing also works to secure ATMs from fraudsters trying to tamper with them. Data on the screen will appear unresponsive, and on further attempts, the machine will likely shut down.
Additionally, edge computing can protect customers’ personal information as their details can be processed closer to its source. Since data movement is eliminated, cyberattackers will have fewer places to invade, reducing security risks.
2. Business Continuity
New technologies, such as edge computing, help to improve security and ensure business continuity. Edge computing makes data management simpler since data is closer to the source.
As a result, scaling operations become more feasible. Additionally, edge computing helps banks to remain operational when faced with unforeseen circumstances, such as disconnection.
When a bank gets disconnected, edge computing will ensure the financial institution will remain in service with minimal downtime. Branches will have operable computer vision, minimizing on-site asset and human staff dependence.
With edge computing, banks can process data much quicker since moving to and from a data center is no longer necessary. This improved speed can benefit banks when they have to make decisions immediately.
3. Next-Generation Analytics
Edge computing also helps banks understand their customers better, allowing them to meet their evolving needs and expectations. Edge computing plays a crucial role in the creation of personalized products and targeted campaigns.
Additionally, it’s useful in offering relevant products to branch customers with near-field communication technologies, mobile applications, and location services. This works by leveraging anonymized data.
Today, banks can offer enhanced experiences efficiently — thanks to new technologies like APIs and edge computing. These technologies help banks exceed customer expectations, helping financial institutions gain a competitive advantage.
4. Increased Innovation
More and more institutions utilize IoT technologies to interact with customers, and banks are no stranger to this. Kiosks, ATMs, bank apps, and other technologies require heightened data processing capabilities.
Edge computing steps in by opening possibilities for more IoT applications with lesser data limits. When a bank improves its security and speed and gains more IoT implementation options, innovation becomes more plausible.
When combined with the potential cost benefits of edge computing, these benefits can help banks significantly. For instance, they can roll out solutions that may otherwise be delayed.
5. Customer Experience
Among the significant benefits of edge computing for banks is giving institutions the ability to offer personalized customer experiences. Previously, technologies, such as virtual tellers and facial recognition, were impossible due to speed and latency concerns.
With edge computing, these innovations have become plausible developments. An infrastructure working close to the ‘edge’ can recognize a customer’s face and deliver information to the branch staff.
Customers can then get relevant loan offers instantly and a highly personalized customer experience. Generic products have become a thing of the past as face recognition technologies, near-field communications, and other innovations provide more relevance.
Without a doubt, advanced technologies play a significant role in the financial industry’s development. Innovative tech solutions like AI and APIs are improving the customer experience in many incredible ways.
Banks must note that these innovations, including edge computing, are here to stay and will continue to evolve. Leveraging the benefits of edge computing for banks will be beneficial for the financial industry, particularly for the digital future.
In a nutshell, if you want to scale in the new digital economy, it is imperative to embrace new technologies. 5G, IoT technology, and edge computing are just a few of the tech solutions that you can leverage to boost your business growth.
Do you want to scale in the new digital economy with top-notch innovation? Visit our website and explore tech solutions that can put you ahead of the competition.