Going Beyond The Basics With The Rise Of Digital Platforms In The Financial Sectors
June 1, 2022 - 11 min read
June 1, 2022 - 11 min read
This is an exciting time for banking and finance. After spending two years digitizing core products and services to catch up with the consumer’s growing appetite for digital, firms in the sector are ready to innovate and maximize technology beyond legacy migration. Universal access to financial services is within reach—thanks to new technologies, transformative business models, and ambitious reforms. As early as 2020, such instruments as e-money accounts, along with debit cards and low-cost regular bank accounts, can significantly increase financial access for those who are now excluded. And, here’s where to start:
The banking industry is undergoing massive digital disruption, with online deposits, mobile apps, and e-bill payments fundamentally becoming the norm. Increased consumer demand for digital banking services has given rise to numerous technological advancements within financial institutions—with artificial intelligence (AI) at the core of these digital transformations.
Digital banking is the digitization of every level, from the front- to back-end, of banking. This means that digital banks rely on artificial intelligence to automate back-end operations such as administrative tasks and data processing—which in turn alleviates pressure put on employees to complete day-to-day tasks.
Not only do digital banks allow users to make account deposits and transfers remotely; but they also provide them with the opportunity to more easily apply for loans and access personalized money management services. Read more at INSIDER INTELLIGENCE.
It’s been a tumultuous few years for financial service companies. Many of them have seen traditional models of working and business disrupted by the ongoing Covid-19 pandemic, the fast-changing technology landscape, and a new breed of agile, tech-driven startups. If anything, the next few years will be even more critical, as we see which businesses are able to adapt to and thrive in this changing environment.
As well as the pandemic, strong drivers behind these trends include the ever-growing numbers of customers who expect to access services instantly, from anywhere via their smartphones. As well as the vast explosion in the amount of data we are generating thanks to our increasingly digital, always-online lifestyles. So let’s take a look at some of the biggest trends that will be impacting the industry, from the incumbent giants to the smallest, most agile startups, over the next 12 months. Read more on Forbes.
The banking world has faced disruption in the past, and some survived, some failed, and some thrived. The adage of lead, follow, or get out of the way comes to mind as banks look at their strategy for successful digital transformation projects within the new digital economy. The barriers to success have been steadfast—those that divide the digitally challenged banks from the digitally native.
For many banks, those barriers are the business models and manual processes that are sitting on legacy platforms with a bolted-on interface that creates a barely acceptable digital experience for the customer but doesn’t accrue the true benefits of being digitally transformed. Read more at KASISTO.
As financial services continue to recover from the crisis and strengthen risk management, the focus remains on regulations and cost reduction.
New challenges and opportunities are quickly reshaping financial services – from AI to fintech, to open platforms and data analytics, to greater customer centricity and workforce shaping – all of which financial institutions need to address while navigating the evolving risk and regulatory landscape.
Organizations are looking at a future that is more interconnected, more collaborative, and frictionless – one where trust, growth, and delivering value are paramount. Read more at KPMG.
We are entering an era in which artificially intelligent assistants give us financial advice, mobile apps immerse us in virtual reality, and self-driving cars park better than humans. Such innovations create a brand new reality for digital banking that redefines the way people perceive their finances.
A forward-thinking bank should stay at the epicenter, embracing technologies that satisfy customer needs for financial health, wealth, trust, and security, with a new level of online, mobile, and omnichannel services. However, even in the era of the most iconic inventions, a high-tech mindset is not enough on its own. The future of each bank depends on how well it can leverage the latest innovations to focus on customer needs, wants, and behaviors.
In exchange, customers will reward banks with loyalty, trust, support, and referrals. In this post, we will go through 10 key technologies and trends that help banks provide future-oriented digital banking services that are seamless, inspired, innovative, and loved by users. Read more at Software Group.