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from this data will enable more proactive (and accurate)
multi-channel marketing, moving from reactive sales
pitches to proactive solutions and advisory services. The
ability to apply machine learning and artificial
intelligence will respond to the customers desires of
"Know me", "Look out for me" and "Reward me." This
is expected to greatly improve the customer experience
which currently lacks personalization and real-time
engagement.

Y Augmented reality (AR), virtual reality (VR) ,
mixed reality (MR) and Extended reality ( ER
or XR)
Augmented reality (AR), virtual reality (VR) and mixed
disintermediating human financial advisors and reducing
costs. It can offer more investor choice, especially for reality (MR) are the foundation of a 4th wave of
low and middle income investors who do not have computing power that integrates sensors, big data, the
access to the wealth management divisions of the cloud, artificial intelligence (AI), and wearables. Artificial
banks. reality (in the general sense) includes all of the
technologies that bridge physical and digital experiences,
including augmented reality, virtual reality, mixed
Y Wallets
reality, and extended reality.
The emergence of e-wallets (e.g. State Bank Buddy, Citi
MasterPass, ICICI Pockets, HDFC PayZaap) and non-bank For the retail banking user, AR will need to strike a
e-wallets ( i.e. Paytm, Mobikwik, Oxigen, Citrus Pay, different tone. One scenario would be buying a product
etc.). payment wallets in India has changed the landscape in a brick and mortar store. Customers look at
of payments as a substitute to the traditional payment something they want to buy. Their finance app can
channels i.e. Cheque, NEFT, RTGS. These e-wallets recognize the specifications and price and overlay this
facilitate non-bank customers to use electronic modes of data on top of the real-world view. The app could then
payments and give existing bank customers a safeguard include options for a loan, even illustrating various
measure that limits the extent to which they are exposed repayment plans and options. Customers can then
to financial risk. Many start-ups have entered the space complete payment for the product right then and there
to simplify mobile money transfer, such as Chillr through their device, with the payment process perhaps
application, which provides peer-to-peer money transfer authenticated by integrated biometrics.
without using bank account details. Several leading banks
have launched their own digital wallets leveraging NPCI's Y Internet of Things (IoT)
IMPS platform even some of them are integrated with The Internet of Things is the way of connecting devices
social media features as well. to communicate, share information, anticipate needs,
solve problems and improve efficiency. It's basically
Y Open APIs, Big Data and Machine Learning inter-networking of physical devices, vehicles, buildings
Application programming interfaces (APIs) enable third and other objects, embedded with electronics,
party developers to build applications and services software, sensors, actuators, and network connectivity
around a financial institution (FI). It facilitates greater that enables these "smart objects" to collect and
financial transparency and helps FIs to innovate and exchange data.
create new revenue models. As per the analysts at "Gartner" predict that, there will be
Open APIs will enable banking organizations to gather 25 billion smartphones, smartwatches, wearables,
actionable data from various internal and external connected cars and other connected devices by 2020. An
sources, including buying habits, financial goals, risk amazing forecast that strongly indicates the influence that
tolerance and even social interactions. Insight derived machine-to-machine (M2M) connectivity is going to have on

42 | 2019 | MAY | BANKING FINANCE