Industries are seeking emerging technologies to innovate and reinvent their traditional work processes to attain business goals, especially in the banking sector. Over the past few years, banks have digitally transformed and adopted smart fintech solutions to bring critical changes in their working environment and provide a differentiated customer experience. By adopting advanced technologies, robust strategies, and value-added products, banks leave no stone unturned to stay digitally fit to meet the changing customer demands, especially after the COVID-19 outbreak.
As per Statista, nearly 1.9 billion global customers actively use online banking services, and this number is likely to reach 2.5 billion by 2024. Technologies like artificial intelligence, IoT, and business intelligence will play a significant role in reshaping the global banking landscape.
Although banks are striving to deliver the best customer services by adopting new-age technologies, a few challenges disrupt financial inclusion. Banking is a very competitive sector. Banks must work on many areas to stay ahead in the competition, including the new rollouts and compliances. Banks are under pressure to transform their strategies using fintech tools and solutions to remain relevant to their customers.
What Triggered Digital Transformation in Banking
Covid-19 has acted as a catalyst for banks to work on their digitization strategy and has accelerated digital growth. When everything in the world was halted, banks were forced to switch to digital banking channels, as mobile banking and net banking were the only mediums customers had to avail banking services. In the past couple of years, the banking industry has witnessed a rapid growth in transactions and increased usage of neo banks (the internet-only banks), enabling banks to focus more on their digital transformation journey.
Change in customer expectations
According to the report published by financial express, nearly 2.5 billion users are actively using banking services digitally. It is estimated that by 2026, almost 53 percent of global banking users will access digital banking services. Also, nowadays, the customers are more inclined towards neo banks that offer smart digital services compelling others to digitalize their core services for faster and efficient customer services. With this changing paradigm in the global banking landscape, banks strive to focus more on a customer-centric approach than a traditional product-centric one.
Adoption of various advanced technologies like cloud computing and artificial intelligence can lead to a remarkable growth in the banking sector. With agile methodologies and innovative approaches, new technologies can help banks to provide a differentiated customer experience which traditional banks failed to do in the past. Banks are now pivoting on digital growth and working on their technological infrastructure to offer a new banking ecosystem for better customer access.
Apart from providing a better customer experience, digital transformation helps banks automate their back-end processes like loan management, account opening, and other agent banking services, enabling them to succeed in driving financial inclusion.
Arttha, PureSoftware’s flagship product, is one of the leading fintech platforms helping banks achieve their digitization goals. This unified fintech platform helps banks in various areas like digital banking, loan management, agent banking, and more. To know more about it, get in touch with our team today.
- Legacy modernization: A great way for banks to keep up with the new digital generation
- The easiest way to build BNPL Fintech services and outrank competition
- The Fintech (Financial Technology) Phenomenon in Africa 2021
- The current state of Fintech in Africa.
- Digital Transformation is the road to success for Banks