Digital Revolution In Retail Banking to Boost The Number of Happy Customers

By CIOReview | Monday, September 9, 2019

The approach toward business interaction is taking new shape after people welcomed digital technology into the world of banking. As technological advancements continue to influence the day-to-day business working, the future of banking has also seen variations in its operations due to the increasing expectations of the millennials.

Technology has been modifying the retail as well as the mobile banking systems singlehandedly and has brought the dawn of digital banking. In the digitalized future, technology has transformed every aspect of the banking industry to increase customer convenience and experience.

Retail Banking in the Future:

The services offered by the bank to the customers in particular conditions like checking accounts, credit and debit cards, and loans are considered as aspects of retail banking. The latest banking technologies are re-constructing the retail banking market, which also serves the growing expectations of customers and allows them to access financial services from different digital channels. The retail banking functions have positively impacted the market with the help of technology, and have improved customer experience.

Newly launched platforms like the banking-as-a-service (BaaS) are being introduced by retail banks to stay competitive in the race along with channels that provide business-to-customer (B2C) services.

Mobile Banking in the Future:

Mobile banking provides its users with facilities like making deposits, transferring funds, and monitoring expenses, therefore it turned out to be the go-to method for every customer. On the other hand, the security of using the mobile banking system has become one of the top concerns of the users in the latest time. Technology has also given rise to security threats as the cybercriminals use modern methods to hack the systems and acquire customer information. The users follow different security methods like placing holds on debit or credit cards and reviewing transactions, which can help in securing their banking from a data breach.

For more comfortable services, there are mobile wallets, the cashless way of banking. Users can shop online as well as in the stores with their smartphones and carry out transactions without the need for a physical card. They have the facility to make payments via their smartphones by using their mobile wallets, which emphasizes convenience. Money management features that help in narrowing down the spending and adding savings to the accounts are indeed another widely accepted feature of mobile banking. In the future, mobile banking can be seen as the most significant application among the millennials and savings tools, along with financial wellness scores, are likely to be the much-used features.

Online Banking in the Future:

Mobile banking has outlived every other form of banking, and online banking certainly slowed down in its pace, worldwide. Online banking has been facing challenging times as mobile banking has been successful in acquiring more than half of its customers. In spite of the rising popularity, a few banks still fall short on fulfilling the expectations of customers from the mobile tasks, like payment of bills and redemption of coupons. Perhaps, that makes the only reason why users prefer to turn back to online banking systems. The craze of the mobile market in the millenials has made it close to impossible for online banking to compete and popularize its services.

Digital-Only Banks in the Future:

Neobanks have been the latest findings of the FinTech world that is redefining the future of banking across the globe. The developments of neobanks are encouraging people to shift toward digitalized channels or digital-only banking and move on from the traditional methods of banking. The landscape of the escalating digital banking has triggered an overhaul in the entire banking industry by taking caring of the demands from the digitalized era.

Trends in Banking Technology:

It is the consumer who drives the future of banking technology and improves the existing facilities in their lives. APIs are the commonly used banking tech trend that helps in making the necessary information available to authorities, having access to the customer data with their consent. It also enables the mobile applications of the bank to shield the customer account data. The finance industry utilizes API technology for business operations, leading to the development of their in-house APIs.

Furthermore, artificial intelligence (AI) and blockchain have been one of the primarily employed technologies in the FinTech world as well as carries a considerable potential to continue its impacts through the following years. Numerous banks now are exploring possible prospects of blockchain technology in the field of process reformation and cost-cutting. The chatbots in most of the banks, helping the customers by imitating live employees and voice assistants are all products of AI.