March 31, 2022
Digital Transformation in Banking: Current Trends
The banking sector saw huge transformations in the past few years. As every sector was being digital, the case with the Banking sector was also not different.
The current trends in the Digital transformation in banking are worthy to look after.
The advantages of being Digital are plenty for the banks. They can provide almost all their services through the Digital mediums like mobile phones, laptops, etc.
The customer does not need to go to the banks to complete the transactions etc.
Other advantages of the Digitization of the banks include:
- Provide quick and easy financial services to the customers.
- Mobile banking makes it easy for customers to conduct financial transactions from any part of the world with a single click.
- Saves time and resources for conducting financial transactions.
- Banks can operate across the globe and promote their business automatically.
Well, let us see in detail what are the current trends of Digital Transformation in Banking.
- Transparency and Open Banking
Trust is the major factor that every customer expects from financial institutions like banks. So the new generation banks have begun to build that trust by availing them loans at reduced rates, quick disbursal of the loans with a single click, educating them about the frauds happening in the society, etc.
A great example is a completely Digital bank, Monzo, that was started in the year 2015 in the UK. They are purely an app-based Digital Bank, which now has more than 5 million users. This digital bank is trusted by a huge population of the UK. The credit all goes to their trustworthy services.
- Evolution of payment methods
The payment methods which were followed traditionally are not even in the scene now. Every service of the bank can be executed through various Digital mediums. The use of cash is diminishing across the globe. Even the local shops promote Digital payment methods, which is a sight to watch.
- Robotic Process Automation (RPA)
We can now find resolutions to our banking-related problems through their mobile apps or websites. There will be a chatbot that provides solutions for all our problems.
The advantages of such things are low error rates, saving time, and cost reduction.
Also, the workload of humans reduces dramatically. So they can work on other relevant and complicated tasks. Even the customers get solutions for their problems within less time.
- Big Data
Data is considered to be the gold of the present century. There is a lot of huge data which is unused by the Banks. So with the help of Big Data, the banks can use these raw data to their advantage as well as for the customers!
Big Data allows you to analyze data like their correlations, time series, etc. In other words, the banks can provide more personalized banking services to their customers. All the customers will love it if the banks can identify their needs.
The banks can also plan their budgets accordingly with the help of Big Data.
- Cloud Computing
The major spending for the banks go in maintaining servers of their own, their maintenance, etc. But with the technology of cloud computing, they can save huge money for their operation. In the banking industry, cloud computing is mostly used in mobile banking and payments services. It also enhances in managing the customers etc.
Banking has now become more simple with the integration of the latest technologies and advancements. Accelerating Digital Transformation in Banking is a crucial condition for the growth of the banking sector.