Contemporary Banking: Unit II - BankingTech
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Questions and Answers

What is one advantage of using AI in financial planning?

  • It requires users to manually input all their financial data.
  • It eliminates the need for human financial advisors.
  • It guarantees that financial objectives will be met.
  • It provides personalized advice to help achieve financial goals. (correct)

    • How does Open Banking improve financial models?

  • By eliminating the need for digital transactions.
  • By focusing solely on credit scores.
  • By limiting data access to a single account.
  • By aggregating data from multiple accounts into one place. (correct)

    • Which of the following statements is true about mobile banking?

  • It typically offers basic banking services. (correct)
  • It uses web browsers for service access.
  • It doesn't require secure authentication methods.
  • It allows for higher transaction limits than internet banking.

    • What feature is generally found in internet banking but not in mobile banking?

    <p>Investment management.</p> Signup and view all the answers

    What security measure is often associated with mobile banking?

    <p>Two-factor authentication methods like PIN and biometrics.</p> Signup and view all the answers

    What distinguishes internet banking from mobile banking in terms of user access methods?

    <p>Internet banking predominantly uses web browsers.</p> Signup and view all the answers

    What is a common misconception about transaction limits in mobile banking?

    <p>Transaction limits in mobile banking are generally lower than in internet banking.</p> Signup and view all the answers

    Which of the following services is commonly NOT a feature of mobile banking?

    <p>Detailed financial statements.</p> Signup and view all the answers

    What is included in the term BankingTech?

    <p>Software, hardware, and tech-enabled services</p> Signup and view all the answers

    What percentage of customers are willing to pay more for a great customer experience?

    <p>86%</p> Signup and view all the answers

    Which of the following trends is true regarding companies competing in customer experience?

    <p>Around two-thirds are competing on customer experience due to similar offerings</p> Signup and view all the answers

    What is expected to happen to operational costs by 2024 with the integration of hyper-automation technologies?

    <p>Reduce by 30%</p> Signup and view all the answers

    Which of the following statements about generative AI in banking is true?

    <p>It could increase productivity by 2.8% to 4.7%.</p> Signup and view all the answers

    What is a notable trend regarding millennials and banking apps?

    <p>78% want apps that anticipate their banking needs.</p> Signup and view all the answers

    Which banking technology is highlighted as important for providing customer service?

    <p>Customer service robots</p> Signup and view all the answers

    What is one of the potential applications of current generative AI technologies in banking?

    <p>To automate work activities that consume 60 to 70% of employees' time</p> Signup and view all the answers

    What year was the term 'Metaverse' first coined?

    <p>1992</p> Signup and view all the answers

    How much is the metaverse market projected to reach by 2024?

    <p>$800 billion</p> Signup and view all the answers

    Which technology is NOT mentioned as a means through which banking in the metaverse will occur?

    <p>Artificial Intelligence (AI)</p> Signup and view all the answers

    In what ways will banks use AR and VR technology in the metaverse?

    <p>Initiate virtual interactions like withdrawals</p> Signup and view all the answers

    What daily active user figure was projected for the metaverse in 2022?

    <p>400 million</p> Signup and view all the answers

    What role will banks play in relation to digital assets in the metaverse?

    <p>Act as custodians for customers' assets</p> Signup and view all the answers

    Which of the following is NOT a potential banking service in the metaverse?

    <p>Traditional cash deposits</p> Signup and view all the answers

    What is an example of a top neobank in India?

    <p>Jupiter</p> Signup and view all the answers

    What primary benefit do chatbots provide during the loan application process?

    <p>They guide customers through application steps.</p> Signup and view all the answers

    How do banks use technology to enhance financial literacy?

    <p>By training chatbots to offer investment recommendations.</p> Signup and view all the answers

    In which of the following areas do AI models assist users, according to the content?

    <p>Setting up automatic payments.</p> Signup and view all the answers

    What is one way AI technology is used for fraud prevention in banks?

    <p>Monitoring transactions for unusual activity.</p> Signup and view all the answers

    What advantage do chatbots provide in customer service for banks?

    <p>They address common inquiries quickly.</p> Signup and view all the answers

    What function do chatbots serve regarding credit score monitoring?

    <p>They offer insights on improving credit health.</p> Signup and view all the answers

    Which of the following tasks can users perform with AI regarding account inquiries?

    <p>Access account balances and transaction history.</p> Signup and view all the answers

    In what way can AI assist with insurance claims in banking?

    <p>By guiding users through the submission process.</p> Signup and view all the answers

    What is a primary benefit of banking in the Metaverse?

    <p>It offers a more engaging and human-like interaction.</p> Signup and view all the answers

    Which technology does NOT contribute to the banking experience in the Metaverse?

    <p>Artificial Intelligence (AI)</p> Signup and view all the answers

    What significant step did JP Morgan take in 2022 regarding the Metaverse?

    <p>Acquired a virtual commercial space in Decentraland.</p> Signup and view all the answers

    How does the digital banking experience often come across to consumers before the Metaverse?

    <p>Emotionally detached.</p> Signup and view all the answers

    What is a Non-Fungible Token (NFT) used for in the context of the Metaverse?

    <p>Purchasing virtual land parcels.</p> Signup and view all the answers

    Which bank has shown interest in investing in virtual land on the Sandbox?

    <p>HSBC Bank</p> Signup and view all the answers

    What is JP Morgan's projected business opportunity in the Metaverse?

    <p>$1,000 billion</p> Signup and view all the answers

    What effect does the Metaverse aim to achieve in the banking industry?

    <p>To restore dialogue and human interaction.</p> Signup and view all the answers

    Study Notes

    Introduction to Financial Institutions

    • Unit breakdown includes an overview of Financial Institutions, BankingTech, PayTech, LendingTech, and InsurTech.

    BankingTech Overview

    • BankingTech refers to technology solutions across the banking sector, encompassing software, hardware, and tech-enabled services.
    • India's banking landscape is evolving, with numerous products and services emerging as key components of BankingTech.

    Evolution of BankingTech

    • Key areas of development include Retail Banking, Core Banking Systems, Digital Banking Platforms, and new concepts such as Metaverse Banking and Neo Banking.

    Key Statistics on Digital Banking

    • 86% of customers value high-quality customer experiences and are willing to pay more for them.
    • 78% of millennials prefer banking apps that proactively meet their needs.
    • Over two-thirds of companies compete primarily on customer experience due to similar offerings.
    • AI-driven hyper-personalization in banking leads to a 9% rise in customer satisfaction.
    • Generative AI could enhance banking productivity by up to 4.7%, potentially adding $200-340 billion in revenue annually.
    • By 2024, operational costs may drop by 30% through hyper-automation and process redesign.

    Digital Banking Products and Services

    • Banks leverage technology for various applications, including financial advice, loan applications, money transfers, credit score tracking, and insurance claims management.

    Mobile Banking vs. Internet Banking

    • Mobile Banking: Basic services via mobile apps; generally has lower transaction limits, focusing on user convenience.
    • Internet Banking: Offers comprehensive services, including loans and investments; typically features higher transaction limits and robust security measures.

    Metaverse Banking

    • The concept of the Metaverse, initiated by Neal Stephenson, involves a virtual reality where users can engage in various financial activities.
    • Projected to reach $800 billion by 2024, Metaverse presents significant growth opportunities in the banking sector.
    • Banks utilize AR and VR technologies to enhance customer interactions, offering innovative products like digital payments and asset management.
    • JP Morgan invested in a virtual commercial space on Decentraland, anticipating significant business prospects in the Metaverse.
    • HSBC and Standard Chartered have also engaged in virtual land acquisition to explore opportunities in the digital realm.

    Future Perspectives on Banking

    • The integration of Metaverse technology aims to restore human interactions in banking, allowing for more engaging and personalized customer experiences.
    • Banks will transform online banking into a virtual environment, enhancing user experience through immersive technologies.

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    Description

    Explore the essentials of BankingTech in this quiz, focusing on India's evolving banking landscape and the impact of digital transformation. Delve into various BankingTech products and services that have revolutionized the financial sector. Test your knowledge and understanding of these critical concepts in contemporary banking.

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