Digital banking has transformed our financial management, offering convenience and innovation. With options like mobile banking apps and digital only neobanks, handling money online is easier than ever. Moreover, traditional banks are also improving their digital services.
With these growing trends, choosing the right digital banking solution is essential. This article explores the latest digital banking trends which are expected to shape the landscape in digital banking.
Key Trends In Digital Banking
Here are some of the latest and impactful trends in digital banking:
- Personalizing Digital Banking:
Making digital banking more personal and user-friendly is important for today’s tech-savvy Millennials and Generation Z. Moreover, they won’t settle for outdated banking practices and expect 24/7 access to services from anywhere. To meet these expectations, banking leaders must understand and respond to their customers’ needs using data and feedback.
Digital channels, like chatbots, can offer the same friendly experience as in-branch visits by handling routine tasks and adding a personal touch. Therefore in 2024, banks that create a warm, friendly customer journey in their digital services will have a significant advantage over their competitors.
- Cloud Trends In Banking:
In 2024, the cloud sector will focus on cost efficiency, specialized cloud services, integrating important applications, and a diverse group of decision-makers shaping cloud strategies. This evolution will significantly influence the future of banking.
Additionally, the nature of cloud workloads will change with a growing attention on hosting mission-critical applications. Financial institutions are shifting away from physical assets and capital expenditure models, increasingly adopting services and operating expenditure models. Cloud technology is expected to become a key element in broader economic strategies, emphasizing intangible assets.
- AI And Automation In Digital Banking:
The financial services industry has recognized AI’s immense potential, with 2023 marking a significant shift due to Generative AI like ChatGPT. An Accenture survey found that nearly three-quarters of companies prioritized AI above all other digital investments.
In 2024, Ai and automation importance will only grow. Generative Ai offers unprecedented personalization, enabling financial institutions to tailor services based on customer data insights.
AI- driven chatbots and automation streamline processes, reduce wait times, and increase customer service. Hyper Automation aids in decision making and operational cost reduction.
Additionally, predictive analytics allow banks to expect customer needs proactivity. By accepting AI and automation result in more efficient, customer-centric, and secure digital banking experiences.
- Cooperation Over Competition:
Banks and credit unions can benefit from fintechs as partners rather than competitors. Cooperating with fintech companies, and tech firms, financial institutions can increase their product offerings, and thrive in the ever changing banking industry. These partnerships also offer opportunities to work with regulatory bodies and industry associations, helping shape future regulations.
Adopting such cooperations can accelerate market entry, provide accurate budget forecasts, and foster a culture of continuous innovation. As consumer demands grow, traditional platforms must adapt to stay competitive.
For smaller community banks and credit unions, investing in ready-to-use digital banking platforms can be an effective way to compete with larger banks and maintain their innovation edge.
- Composability And Adaptability:
A great transformation is taking place, decentralizing IT services across enterprises. This change is driven by the rise of business technologies and the creation of fusion teams that need business centric services without technical knowledge. The growing use of APIs in applications design and vendor collaboration fuels this trend.
Moreover, Gartner predicts that 60% of finance organizations will implement composable finance applications using modular technologies from various vendors. By adopting this trend will be gradual, influenced not only by technological changes but also by organizational structure, project management, and the IT alignment with business goals.
Factors To Consider When Selecting A Digital Bank
Here are the some important factors to consider when selecting a digital bank:
- Effortless Integration:
Choose a digital banking platform that integrates seamlessly with current and future core banking technologies. Look for robust integration frameworks that unify customer data, enable central monitoring, reuse IT assets, and ensure business continuity, preventing the platform from becoming another outdated technology in your IT stack.
- Reliability And Security:
Your digital banking platform must handle high transaction volumes, ensure uninterrupted service, and quickly resolve issues. It should use strong data encryption, compliance, backups, access controls, and audit trails. Opt for a solution with the latest security protocols, advanced monitoring, and robust business continuity features.
- Adapt And Build:
Choose a digital banking platform that lets you customize and build on it, from UI/UX to security and rules. Modern platforms support this flexibility, helping with ongoing innovation. A low-code approach eases IT workloads and speeds up development, ensuring your bank stays ahead.
Top Digital Banking Options
- Mobile Banking
- Mobile wallets
- Finacle
- Discover BanK
- Backbase
- Bankpoint
- Chime
- Bill payments
Conclusion:
In conclusion, now that you know about digital banking trends and solutions, you can start considering your requirements. By selecting a platform that offers seamless integration, robust security, and adaptability, financial institutions can stay competitive and innovative.
For smaller banks and credit unions provide a vital edge. As consumer demands evolve, banks must prioritize flexibility and technological advancements to provide efficient, secure, and customer-centric services in the dynamic financial landscape.
