With the rise of technology and ease of access on smartphones and tablets, digital banking has proven to be a lucrative development opportunity in the financial world. As time progresses, there is a clear push towards digital banking transformation from both the clients and the banking industry.
Digital banking has the potential to ensure the satisfaction of end-users, increase security and stability, and make transactions easier than ever. With more and more people being interested in this new technology, companies and banks around the globe have started implementing, improving, and developing new ideas to make e-banking a reality.
What is digital banking?
Digital banking, also called online or e-banking, is part of a broader move to digitalize banking services and make them accessible over the internet. The shift from traditional banking is still ongoing, and currently, around 70% of the world population uses some form of digital banking. The aim is to allow for high levels of process automation and web-based services to deliver banking products and provide transactions. It provides the ability for users to access financial data at any time and any place via desktops, mobile phones, or ATM services. This can save customers and the bank a lot of time and money. Other major benefits of digital banking are:
• Business efficiency
• Cost savings
• Increased accuracy
• Greater agility
• Enhanced security
• Improved competitiveness
Major digital banking trends in 2020
Blockchain data management started as a means to track cryptocurrency exchange, but later on, it found its place in a plethora of industries and cloud platforms. It has a unique system of data tracking and information management, which makes it a very viable way to increase the digital banking safety of clients across the globe. In 2020, more and more banks implement blockchain as a means for a safer and more transparent transaction market, allowing stakeholders and clients to utilize banking platforms to their fullest.
Mobile-only banking experienced a significant rise in recent years. People with smartphones find it much easier to access their financial records, pay bills, and transfer funds with just a few clicks. The rise of mobile banking led to a development opportunity and aspiration to create mobile banking platforms that will cater to all day-to-day needs.
No-card transactions are another step in securing the safety of clients and making transactions easier and quicker. Even though cards are considered to be safe, there is still a possibility for illegitimate account access. Pioneers of digital banking aim to carry out transactions and purchases via QR codes and other no-card means. This will allow clients to conduct business without the need to rely on physical cards.
Biometric identification will make a big mark on the FinTech industry in the near future. Due to the rise of the cybercriminal, an increasing number of companies are introducing biometric identification to ensure heightened security. Fingerprint, eye scanning, and facial recognition are just some of the possibilities being integrated into mobile banking apps. These are done with exclusive clients’ permissions and would render the laptop or smartphone useless in case it ever gets stolen.
AI-driven banking consists of special AI algorithms and chatbots that aim to help clients transition into online banking. The AI algorithms have proven very capable in recording and notifying the user of any and all access attempts, changes or transactions being made with their account. Experts also believe these AI algorithms can be further improved to monitor and learn user patterns commonly associated with that user, registering them as positive interactions while being suspicious of any other events and actions.