Industry 4.0 refers to the Fourth Industrial Revolution. Below is the background of different Industrial Revolution so far:
| 1st Industrial Revolution | Between 1760 and 1840 | Mechanisation transition from hand production methods to machines through the use of steam power and water power |
| 2nd Industrial Revolution | Between 1871 and 1914 | Technological Revolution or Electrification |
| 3rd Industrial Revolution | In the late 20th Century | Digital Revolution Digital advancement with computers , communications and IT systems |
| 4th Industrial Revolution | Originated in 2013 by German Govt. through promotion of computerisation of the manufacturing industry. | Extension of 3rd Industrial Revolution with growing trend towards automation, smart technology, IOT, Cloud Computing , AI etc |
Industry 4.0 or I4 provides a process of transforming our economy and society along with technological advancement in the field of Robotics, Cloud Computing technologies, Internet of Things(IOT), Block Chain, Artificial Intelligence (AI), Big Data, etc.
Banking or financial sector is also impacted with these radical changes and constantly striving to grow and transform in order to meet the current customer’s needs at a cheaper and affordable cost with higher satisfaction.
To have a scalable and reliable infrastructure at optimized cost, the banking infrastructure tends to move to cloud service facilities.
To secure and ensure non-repudiation of domestic and cross-country payments, Blockchain technologies is belong used through Smart Contract etc
Artificial Intelligence (AI) and Big Data technologies are assisting the banking industry to predict the trends and also understand the needs of customers and offer products as per the customers’ needs. Different Machine Learning algorithm is helping to detect and prevent cyber frauds. Chatbots, Voice recognition etc technologies are very instrumental for customer service.
So, in order to maintain stability and profitability in the current fast-changing market, banks and financial institutions need to invest in such emerging technologies.