Evolution :: Digital Banking

Original article was published by Ankit Rakholia on Artificial Intelligence on Medium

Evolution :: Digital Banking

Adopting digitization (or moving online) from the traditional banking structure and services that were historically only available to customers when physically inside of a bank branch are Digital Banking.

This includes activities like

  • Money Deposits, Withdrawals, and Transfers
  • Checking/Saving Account Management
  • Applying for Financial Products
  • Loan Management
  • Bill Pay
  • Account Services

In addition, until the past few years, banks were not envisioning the tremendous shift in consumer behavior that occurred as a result of the millennial generation becoming the largest consumers of financial products.

In present scenario 75% of customer preferred online banking rather the using traditional way of banking, so banks are investing in great online experiences.

Industry Trends

According to the Deloitte’s report on “2019 Banking and Capital Markets Outlook”, banks are finally starting to prioritize their digital banking efforts to match consumer expectations.

28 percent of banks cite “create digital capability” as their primary digital technology initiative this year, while “modern legacy systems” came in second with 23 percent. According to survey, over 50 percent of banks are shifting and prioritizing toward the evolution of digital banking which will directly cheer up the sentiment of their customer.

Global Market Insights

Digital Banking Market size estimated to be nearly USD 8 trillion in 2019 and is poised to register gains at over 6 percent CAGR from 2020 to 2026. Total global digital payment transactions exceeded 750 billion in volume, with the value accounting for over USD 700 trillion defined by Global Market Insights report.

Growing demand of digital banking is supported by evolved technologies and methodologies to maintain their support system

Support system of digital banking is maintained by present day’s advance technologies like

  • Bots :: Bots, be it chatbots or voice bots, can conduct smart and compelling conversations on behalf of the bank with millions of consumers, at a fraction of the cost of using human customer service staff. Customer experience is being elevated by the efficiency and speed of Conversational AI and its interactive nature.
  • Omni Channel Contact center solution :: While digital banking has become the default for many customers, there are still those who value the personal touch. One European bank that implemented changes at scale saw consistent sales growth of the maximum amount as 20% over two to 3 years, suggesting that the advantages of optimizing omnichannel capabilities are ongoing and significant.

These are a number of the explanations why Digital Banking has become popular now. But these also are a number of the explanations why you ought to choose Digital Banking in today’s time. In fact, with its growing potential with each passing day, you’ll secure your financial future if you begin now! Along with Digital banking, technologies like Artificial Intelligence and Omni Channel Solution is also showing promising future to boost the services of banking system.