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2021 & Beyond!
Latest Trends to Watch Out in the Digital Banking Space
Author: Sanjana Sarma
20 May 2021
Banking As A Service, the New Norm
Banks have started providing Banking as a service (BaaS). Many countries are already considering the banking regulations that will define the rules of client-bank digital interaction.
Though BAAS is still in its early days, the UK has already passed BaaS and open banking regulation, and countries around the world will soon follow suit. The most innovative are already taking advantage of this technology.
COVID-19 forcing institutions to embrace digital transformation
Financial institutions are under greater pressure to provide digital functionality that is both simple and fast.
At a time when most institutions are heavily concerned with the prospects of loan losses and the shrinking of revenues in a post-pandemic economy, we can also see a shift of focus on automation and robotics for a seamless operations and customer experience.
The decline of brick-and-mortar banks
The relevance of physical banks will continue to fade, slowly but steadily, giving way to the overwhelming use of digital services via mobile, computer, and other devices.
Digital Financial Services for the Underserved Market
A significant number of excluded and underserved poor customers are using a mobile phone or other digital technology to access financial services. And it continues to shift rapidly with the emergence of ever more new technologies.
Typically lower cost of digital transactional platforms — both to the provider and thereby the customer — allow customers to transact locally in irregular, tiny amounts, helping them to manage their characteristically uneven income and expenses.
The Need for Fast Data Processing
The movement to cloud computing has been slower than anticipated in the banking industry; however, the need for fast data processing will lead to the accelerated use of cloud computing in the banking sector.
Race to become Cashless
The movement to cloud computing has been slower than anticipated in the banking industry; however, the need for fast data processing will lead to the accelerated use of cloud computing in the banking sector.
Expecting Instant Gratification
Conditioned by real-time ride-hailing, one-click shopping, and same-day delivery services, digital customers are coming to expect instant gratification constantly. The next frontier is the instant and seamless integration of the digital and physical world
Published May 19, 2021
Author: Sanjana Sarma
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Sources:
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https://www.worldbank.org/en/topic/financialinclusion/publication/digital-financial-inclusion
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https://scand.com/company/blog/the-rise-of-banking-as-a-service/
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https://www.accenture.com/in-en/insights/banking/top-10-trends-banking-2021
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https://thefinancialbrand.com/104418/digital-banking-transformation-priorities-trends-predictions/