Latest news with #BankingTechnology
Yahoo
2 days ago
- Business
- Yahoo
The Future of Banking: Expect AI Advisors, VR Branches and Maybe Even Brain Chips
Banking technology has been evolving rapidly. It wasn't too long ago that you needed to visit a physical bank branch to deposit a check or transfer money to a different account — tasks that you can easily complete now with the click of a button on your phone. These technologies have been embraced by Americans of all ages, but millennials seem particularly poised to adapt any forthcoming banking tech that rolls out. Check Out: Read Next: According to a recent Chase survey, 1 in 4 millennials would use virtual reality to visualize their finances, 17% would have robots track their finances and investments, and 16% would consider neural implants for real-time money updates. While these technologies may seem far-fetched, some may soon become a reality. Here's what the future of banking could look like in the not-so-distant future. AI and Robots Are Already Changing How US Banks Serve Customers Many banks currently utilize artificial intelligence with AI chatbots fielding customer service requests and AI fraud detection tools to keep customers' money safe. The use of robots for other functions could soon be a reality; however, banks will have to be mindful about how they integrate this technology with existing systems. 'Banking is an ecosystem of multiple touchpoints,' said Christina Claudio, head of product for Connected Banking at Chase. 'While we always want to incorporate new and exciting technology, we have to be thoughtful about how that touchpoint plays across other interaction points for customers.' Learn More: Virtual Reality Could Transform Banking Customer Service and Education Banks may soon be adopting VR technology to give clients a better money management experience. 'The most likely place to see this come to life would be in customer service or some iteration of AI-assisted money coaching,' Claudio said. Virtual reality could be used by banks in a number of ways, including allowing customers to visit a virtual bank branch, helping them visualize their spending and savings habits, simulate financial scenarios like buying a home or planning for retirement, or interacting with virtual advisors. Could Neural Implants Be the Future of Personal Finance? Brain-computer interfaces are already being tested in other industries — and banking could embrace it down the line. While this technology likely won't be utilized by banks in the near-term, they could eventually be used as another tool to improve the customer experience. 'We are just at the cusp of exploring all the ways AI can help,' Claudio said. 'Financial management and planning are highly personal moments in a customer's journey, and something like neural implants could help make these important items a greater part of customers' lives.' What's Next: Hyper-Personalized Banking for Every Customer Even without brain chips, many banks are already exploring new ways to utilize technology to give clients a more optimized experience. 'We'll continue to see advances in AI-powered tools, enhanced and more customized or personalized mobile app experiences, and better fraud detection and prevention,' Claudio said. Consumers will likely see benefits such as more individualized budgeting, spending and planning tips and insights, as well as actionable strategies to make their money do more for them. This could mean having AI assist with booking a vacation and using reward points more effectively or applying offers and paying off bills that help customers get closer to a goal, like buying a home. As technology rapidly evolves, it provides more opportunities for banks to fulfill customers' advancing needs. 'If we're only as good as a customer's last best experience, it certainly ups the ante,' Claudio said. 'We're thinking about hyper-personalization, evolving point-in-time solutions, and driving greater connectivity between customers and their finances.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Clever Ways To Save Money That Actually Work in 2025 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on The Future of Banking: Expect AI Advisors, VR Branches and Maybe Even Brain Chips Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
Yahoo
4 days ago
- Business
- Yahoo
Diebold Nixdorf (NYSE:DBD) Surprises With Q2 Sales
Banking and retail technology provider Diebold Nixdorf (NYSE:DBD) announced better-than-expected revenue in Q2 CY2025, but sales fell by 2.6% year on year to $915.2 million. Its GAAP profit of $0.33 per share was 17.5% below analysts' consensus estimates. Is now the time to buy Diebold Nixdorf? Find out in our full research report. Diebold Nixdorf (DBD) Q2 CY2025 Highlights: Revenue: $915.2 million vs analyst estimates of $886.1 million (2.6% year-on-year decline, 3.3% beat) EPS (GAAP): $0.33 vs analyst expectations of $0.40 (17.5% miss) Adjusted EBITDA: $111.2 million vs analyst estimates of $98.9 million (12.2% margin, 12.4% beat) EBITDA guidance for the full year is $480 million at the midpoint, in line with analyst expectations Operating Margin: 6.1%, down from 7.5% in the same quarter last year Free Cash Flow was $12.6 million, up from -$16.1 million in the same quarter last year Market Capitalization: $2.09 billion Company Overview With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf (NYSE:DBD) provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions. Revenue Growth A company's long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $3.67 billion in revenue over the past 12 months, Diebold Nixdorf is a mid-sized business services company, which sometimes brings disadvantages compared to larger competitors benefiting from better economies of scale. As you can see below, Diebold Nixdorf struggled to generate demand over the last five years. Its sales dropped by 1.8% annually, a rough starting point for our analysis. Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Diebold Nixdorf's annualized revenue growth of 1.8% over the last two years is above its five-year trend, but we were still disappointed by the results. This quarter, Diebold Nixdorf's revenue fell by 2.6% year on year to $915.2 million but beat Wall Street's estimates by 3.3%. Looking ahead, sell-side analysts expect revenue to grow 4.8% over the next 12 months. Although this projection indicates its newer products and services will catalyze better top-line performance, it is still below the sector average. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Diebold Nixdorf was profitable over the last five years but held back by its large cost base. Its average operating margin of 1.8% was weak for a business services business. On the plus side, Diebold Nixdorf's operating margin rose by 2.8 percentage points over the last five years. This quarter, Diebold Nixdorf generated an operating margin profit margin of 6.1%, down 1.4 percentage points year on year. This reduction is quite minuscule and indicates the company's overall cost structure has been relatively stable. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Although Diebold Nixdorf's full-year earnings are still negative, it reduced its losses and improved its EPS by 35.1% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Diebold Nixdorf, its two-year annual EPS growth of 83.4% was higher than its five-year trend. We love it when earnings improve, but a caveat is that its EPS is still in the red. In Q2, Diebold Nixdorf reported EPS at $0.33, down from $0.40 in the same quarter last year. This print missed analysts' estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Diebold Nixdorf's full-year EPS of negative $0.34 will flip to positive $3.42. Key Takeaways from Diebold Nixdorf's Q2 Results We enjoyed seeing Diebold Nixdorf beat analysts' revenue and EBITDA expectations this quarter. On the other hand, its EPS missed. Overall, this was a decent quarter. The stock traded up 5% to $59.10 immediately after reporting. Should you buy the stock or not? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
