The way businesses function and engage with customers has changed as a result of digitization. Consumers had to physically be present in order for their wants and needs to be addressed in the past when businesses delivered items and services through brick and mortar establishments. The banking business is not immune to the consequences of digitization. In the modern banking procedure, online and mobile-friendly solutions have become critical.
Understanding Banking’s Future
To young bankers under a certain age, writing checks, posting money orders, and standing in line to ask a bank teller to transfer money from your checking account to your savings account may appear bizarre routines. These behaviours, on the other hand, were once required for account access and money transfer. Old-school banks like Bank of America and Chase have had to make significant changes to stay relevant in the market as digital channels and platforms have grown in popularity.
The Six Most Recent Digital Banking Trends
Banks are embracing “as-a-Service” platforms.
The phrase “software-as-a-service” (SaaS) has been used frequently on this page to describe digital platforms that help organisations better serve their clients. Banks are using “banking-as-a-service” (BaaS) digital platforms to enhance their financial services and better serve their customers in an increasingly mobile-dominated market in a similar scenario.
Paperless remittances are requested by businesses.
Unlike the financial sector, other firms have been slow to adapt to the evolving digital world. Touch and go, real-time payments, and access to digital currencies like crypto are the top abilities required in the B2B sector to stay relevant to their customer bases. When banks offer these services, they remain competitive in the marketplace.
From big IT to big banks, there’s something for everyone.
Large, well-known banks such as Bank of America, Wells Fargo, and Chase will no longer be the sole players in the banking industry. Google, Amazon, and Uber are all attempting to get into the financial business, with Google announcing plans to provide a “smart” checking account this year. Big banks must carefully choose who to build possible alliances with and who might be future competitors in the present digital landscape.
Associations that are digitally based attract digitally based illegal activity.
Crime is attracted to money. When money becomes computerised, the unlawful behaviour that surrounds them also becomes digitised. To combat assaults from hackers looking to steal financial information, banks must use cybersecurity for their BaaS and other digital platforms. To keep consumer data and financial information safe, banking institutions are continuously on the hunt for weak spots and open areas inside their digital platforms.
Better Access to Finances by Going Digital
According to World Bank statistics, persons who primarily perform cash transactions are more likely to be targeted by hackers and may find it more difficult to save and manage their money. More clients will have access to credit and safer payment choices as a result of going cashless, owing to digital banking services.
In 2020, the Internet of Things will bring streamlined banking to all devices.
The internet of things (IoT) is a concept that refers to the interconnection of gadgets such as smartphones, smart watches, computers (desktop and laptop), and other electronic equipment. Banks with digital platforms that want to attract and retain consumers are leveraging IoT by ensuring their BaaS is interoperable with a variety of devices. Customers will be notified if an unexpected device accesses their personal internet banking account in Malaysia, and they will be able to monitor activities from anywhere at any time.