Trends in Digital Banking Sector

Digital banking has proven to be a profitable development opportunity for FinTech businesses thanks to the rise of smartphones and global internet coverage. With the growing trends of digital banking, businesses can take advantage of its benefits like:

AI-Driven Security

Integrating AI algorithms in digital banking can notify users of access attempts, unusual changes, and transactions made on their accounts and help rectify it.

It can also learn which use patterns are generally related to users and register it as positive interactions during suspicious events.

Blockchain Data Management

Implementation of blockchain in traditional banks and fintech startups can enable better security and allow a transparent transaction market where both B2C and B2B stakeholders can use banking platforms to the maximum extent.

Blockchain’s data tracking and information management provide enhanced digital banking safety for clients globally.

No-Card Transactions

Digital banking will enable their users to carry out POP and POS purchases through QR codes and various no card transactions allowing banking institutions to go green and emphasize their mobile banking services.

Simplified Client Billing

Digital banking can enable users to visit their platforms and pay any due bills with just a button click. It can also increase the green factor and enable convenient client billing.

Voice-Assisted Banking

Voice-assisted banking characteristics can efficiently close the gap by enabling clients to use their voices in navigation, transaction, and chatbot interaction. It can also be voice-locked by registering only the clients and their commands, enhancing the digital banking platform’s security feature.

Mobile-Only Banking

Mobile banking has gained popularity because of its convenience and accessibility, making it possible for fintech businesses and traditional banks to develop their mobile banking platforms, which will help people with their daily needs.

Key Trends in the Digital Banking:

With the increasing adoption of online and mobile banking platforms, the digital banking market has significantly grown. The banking organizations are moving towards digital services to deploy their services by teaming up with fintech companies to create customer-centric products and services, offering improved customer experience.

Financial institutions leverage advanced technologies like blockchain and artificial intelligence to gather, report, and study a vast amount of data to collect meaningful insights about customers to meet their needs.

Incorporating these technologies has helped lower operating costs and avoid investing in expensive legacy hardware and software to keep their systems relevant. Banks can also retain customers by providing an enhanced customer experience, personalized services at low costs, and a 360-degree view of their customers.

Market by Services

Banks and consumers are shifting towards digital payment modes as it offers a faster, safer, and convenient transaction modality. As cash and credit cards are gradually becoming outdated, digital transactional services dominate as it offers a faster payment, a strong value proposition for customers, and customer retention.

Market by Type

Over 75 percent share in the digital banking market accounts to retail banking and this growth is credited to the significant adoption of electronic and mobile payment by users. With the change in market dynamics and customer preferences, financial institutions are coming up with business models to address them.

The retail banking sector has also started embracing digital banking as it helps optimize efficiency, offers enhanced banking experience for customers, and reduces cost.

Competitive Market Share

The digital banking market has become significantly competitive because of its presence in multinational companies and fintech startups. These players merge with banking organizations using organic and inorganic strategies to seize the market share and grow their customer base.

Financial Tech Review is a technology magazine which offers knowledge network for financial services. It also shares news articles on the latest developments in fintech industry.