7 Key Digital Banking Trends KEY TAKEAWAYS
Digital banking has transformed the way we do transactions making it seamless and efficient. The trends in banking focus on providing services such as API for open banking, digital wallet, immersive tech, and more. Automation is a big part of modern financing with chatbots bridging the gap between fintechs and customers to offer instant resolution. With robust cybersecurity, biometric authentication services have also surged, building trust in banking facilities. There’s something similar between Elon Musk’s self-driving car Tesla and today’s digital banking trends.
Everything is automated and we are simply sitting in the driver’s seat, directing and monitoring the systems towards our goals.
Likewise, digitization has transformed the financial ecosystem with transactions taking only a few seconds to reach anywhere.
Now modern banks provide services like open banking, varied digital payment options, virtual reality experience, and more.
This article will explore the 7 most popular digital banking trends of 2024, that are going to enhance the way we handle funds with speed and efficiency in the future.
Digital Banking Market Overview From moving from one bank to another or waiting in a queue to withdraw money, we have come a long way, thanks to the digital economy.
Instead of cash, ATMs, and credit cards, now people prefer to use digital money for banking. The Internet has connected fintech to customers so closely that with just a click, you can get a loan, buy stocks, open an account, etc.
Smartphones and cybersecurity have improved drastically and dealing with customer’s data requires immediate attention for a smooth banking experience.
Let’s explore the new-age digital banking trends that are going to be a big part of our lives in the coming years.
FUN FACT Bank of America reached the mark of 3 million online users at the beginning of the 21st century.
Top Digital Banking Trends: Digital is the only way forward in banking to provide more seamless facilities to customers. You may be living in a city or a farm, but with a smartphone and a strong network, you can manage all your accounts without any hassle.
As digitization envelops our lives, there is more to look forward to that will transform the way we transact regularly.
Shift Towards Open Banking Services With the advent of varied private financial services, the Application Programming Interface (API) has been widely accepted.
Through this process, banks share a customer’s financial data with the third-party service provider under a controlled agreement.
It is a facility that fosters trust in financial institutions to offer better transactional means without too much paperwork.
Adopting Mobile Banking Practices It is not surprising that as smartphones and banking, both are advancing towards a new age, mobile banking will be embraced much more widely.
There is less crowd in the offline banks and many fintech are offering exclusive mobile-only services.
It is a big move that saves renting costs, virtual customer service support, and faster fund transfers during emergencies.
They also align well with companies showcasing their new credit cards allowing a growth-driven competition.
DO YOU KNOW? India has the highest percentage of mobile banking users in proportion to the number of current account holders. Sweden falls second in the list.
Enhancing Customer Experience Metaverse is the new beginning of high-tech with virtual reality (VR) creating a space that is used for an immersive experience.
Away from a gaming arena, this tech in the banking sector enables users to collaborate, interact, and socialize in a dynamic 3D environment.
It provides a safer platform that could be accessed while sitting in a living room or a beach, but with high security.
The transactions become easier to transfer and the identification of a customer with all the proof also becomes virtually secure.
Automating Customer Service Automation has emerged as a superpower with software integrated into banking, making customer service resolution faster.
In the past, it took time to understand a query, leading to frustration. But with access to chatbot data processing and CRM software, there is freedom to have a more independent financial facility.
This bridges the wide gap in accessing funds at any time, without the bank’s intervention or any security breach.
Artificial Intelligence The future belongs to GenAI which does not want to deal with long processing hours. Banks want to utilize the maximum potential of artificial intelligence by providing personalized services.
An account holder’s requirements are assessed using the data offering proactive custom-made facilities.
This is the power of digital banking that could evaluate the needs of the customer in a better way, helping those in rural areas and people with disabilities.
Take a look at the graph below that shows the market size of generative AI in the banking sector which has been growing since 2022 and is forecasted to expand further till 2032.
Biometric Authentication Smartphone owners and governments are widely using the biometric authentication system to enable secure identity checks.
It is a fast and safe way to make purchases through digital wallets both in a physical store or online.
It is an advanced security measure and safeguards sensitive financial information from potential threats.
This has also helped the tourism and business sectors to transfer funds across borders without any hassle.
Digital Payment The instant surge of digital payment has also expanded with many independent firms utilizing crypto for performing transactions.
It is the fastest-growing trend that is decentralized and is a secure way to transfer money. From a developed country like the U.S. to a developing nation like Turkey, all have embraced the Bitcoin wave.
There is no stopping for virtual currencies to move further and 2024 is showing renewed interest in making it a more viable option of digital payment in the future.
The Future of Financial Services Several economies are looking forward to the drastic transformations that digital banking is going to make in the coming years.
The future of all financial services lies in creating a robust system with enhanced cybersecurity. Providing the best facilities is the financial software development services
It is more than just a trend but a necessary facility that builds trust and loyalty between FinTech and its customers.
Conclusion The financial ecosystem is moving towards a new age of banking solutions that are faster and more accurate.
Driving this modern wave are the top digital banking trends mentioned in this article that will be game-changers in the coming years.
For individuals, governments, and businesses, automation is a key that opens multiple opportunities to create a robust economy full of hope.
