The new face of Banking: a Digital Transformation

Article

The term Going Digital is not a new term anymore. With every passing day, each industry in each sector is jumping on the bandwagon of adopting technology and incorporating it into each aspect of their company. It’s more important than ever for industries to embrace this ever-evolving technology in order to thrive.

For the Banking industry, “Going Digital” was an extreme need and a major change. The introduction of Digital banking has immensely benefitted all the relevant stakeholders by improving the entire process of banking. In order to understand how it’s important to understand what digital banking is in the first place.

What is digital banking?

Digital Banking is the future. It opens avenues, creates opportunities, and unleashes a whole new dimension for the banking industry. The term Digital banking refers to the availability of banking services online. It integrates mobile and online banking under one roof. Through online and mobile banking, the users can avail all possible services of the banks like opening an account, making payments or transfers, and taking loans without the need of ever visiting a bank’s branch physically.

Although this transition is not an overnight Process and digital banking continues to evolve, the global digital banking market is projected to cross the $1,702.4 billion mark by 2026, from a significant market share of $803.8 billion in 2018, in the 2018-2026 forecast timeframe.*

This paradigm shift is beneficial for the customers as well as the banking industry. The benefits include

Accessibility and Convenience

Banking is at your fingertips, literally. It eases the trouble of visiting the branches to availing any service. In addition, banking can be accessed by individuals residing in rural areas, where it’s difficult for banks to set up branches.

Better Rates and Lower Fees

Since the cost of operating physical branches has been reduced, banks are transferring this benefit to their customers in terms of lower fees and higher interest rates. It’s also easier for customers to compare rates and fee structures to help them choose the best bank according to their needs.

Decreased maintenance costs

the transition towards a branchless operation entails a reduction in labor costs, upkeep for location, rent costs, and any other costs that come with operating a brick and mortar.

Agility

the overall process of banking is much more efficient, quicker, and better

Increased Revenues and Growing Numbers

the growth of online banking has generated greater transactional revenue and increased the number of users in absolute terms.

Constant Innovations and Improvements to stay ahead of the game

it’s more important than ever for banks to focus on upgrading their systems and technology in order to stay relevant and exclusive for their customers.

Accountability

The government and Authorities can monitor the system easily since it’s all online. Since Banks are also required to remain compliant with the policies and restrictions of technology, this keeps the system transparent and fair.

Enhanced user experience

Developments in AI and Big data can allow banks to Predict, Engage and offer personalized solutions to their consumers, enriching the users’ experience.

Endless Opportunities and Possibilities

Technology and tools including Artificial Intelligence, Internet of things, APIs, and Cloud are transformational and open so many dimensions for this industry to capitalize on.

THE FINAL
TAKE

It’s time to recognize the fact that the digitalization of banks and the evolution of technology, in general, is moving at an unstoppable speed. The only option consumers and businesses have is to embrace it and pave the path towards the future.

Author

Hiba Hashim

[email protected]

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