Digital Banking has evolved at a rapid pace over the 21st Century. The days where you would find yourself queuing at a bank to open an account, make a deposit, or transfer money are long gone. Due to the deadly pandemic, the banking and fintech industries compressed a decade of digital innovation into a 12-month span. This change in the finance sector is by customers embracing digital services. Including many who had never before completed financial transactions online. People easily adapted and will continue to do so, but what are the future trends of Digital Banking going to be like?
Trend 1 – Fewer Accounting Mistakes
Depending on machines to eliminate the plethora of errors and mistakes in mechanical calculations is really appealing. With the human factor constantly replaced with digitalization, the chances of errors become considerably less. Thus, this can singlehandedly increase the levels of productivity.
Trend 2- More Cardless payments
A century ago or even a year ago, it would have been almost impossible to convince someone that their entire liquid value would be available for viewing and transactions via a plastic card. Moreover, another step up from the plastic cards for sure is the digital wallet. Asian markets are the leaders in this trend, with more than 50% of transactions made via digital wallets. However, in order to see more integration of digital wallets, there must be significant growth in payment-capable IoT devices.
Trend 3 – More Tailored Experience
UX or User Experience is amplified in digital banking. The unique software monitors patterns in tastes and likes of the account holder and how he/she chooses to proceed with their funds. Thereby conducting meaningful communication with the user.
Trend 4 – More competition between Banks and Non-Banks
The relevance of brick-and-mortar banks will continue to decline, giving way to the overwhelming use of digital services. For instance, there are still unbanked areas where access to brick-and-mortar financial institutions is still challenging for individuals. Fintech can act as a door to banking services for areas of the world that are deprived of sufficient banking infrastructures. They can connect users with services like digital wallets, cashless transactions, and wealth management.
Digital Banking is here to stay! There was a time when the traditional methods of high-street banking were the epitome of financial advancement. But people have moved past this hype. More and more often, people rely on digital banking. Even in the pandemic and constant lockdowns, the only way to see your present financial situation and operate with your assets was the digital way. Do you have an idea for a financial app or platform that will be extremely useful in a time of digital transformation, contact us right now!