Technological change is constant throughout the financial world and it is critically important to keep up with next gen tools to understand the digital banking transformation.
Digital banking has changed the financial industry and changed the way customers use the banking platform completely.
Tools to Drive Digital Banking Transformation
Technology advancement has become a major inspiration for customer’s decision-making. Most customers, especially banking customers, base some of their decisions on the level of digital transformation that the bank has. As such, the banks must adopt various digital transformation techniques or tools to remain competitive in the market.
In recent years, the banks have made progress in making service delivery easier for their customers. Some banks have developed a way of cutting down the long queues by employing more tellers or making the teller services faster. None of these, however, has had the effects that mobile banking has made.
Mobile banking, though in its initial advancement, has transformed the banking world and will continue making transformations in future. Customers can access several banking services in their phones, hence reducing time wastage and cost that they would incur to acquire such services. The ease of working with such mobile application has become a modern competitive edge for many banks.
The banks have also adopted another banking trend called digital marketing. This involves marketing the bank’s services and products on major digital platforms such as social media. Thus, the banks can capture the attention of as many customers as possible.
Digital platforms, especially social media, have so many users. Those users are keen to observe the changing trends in the world. As such, banks advertising on such platforms can easily capture the attention of such users and effectively attract them as potential customers. Hence, digital marketing is a major tool that bankers should use.
Electronic Payment Systems
The use of electronic payment systems is advancing too. Companies such as Visa have innovated the way credit cards are now used. Electronic payment systems allow people to buy goods and services with their credit card without the card being physically present. These are more preferable than credit cards as they do not contain most of the user’s vital information. Therefore, it has gained popularity among many bank customers. It is one of the biggest banking transformations.
Electronic Funds Transfer
Another banking trend that is on the rise is the Electronic Funds Transfer. With most businesses in the world going global, the need for a convenient funds transfer system has risen. With the new technology, people can transfer funds from one person to another regardless the distance between them. This new trend is becoming a new competitive edge in the banking sector.
Many customers need to, if their banks can help them, transfer money or funds to people in foreign countries and receive funds from abroad. Banks with the fastest services become the most competitive, at least on this matter. Thus, banking firms should take a closer look at the electronic funds transfer if they are to survive the future transformations.
In conclusion, technology is vital to the banking and financial sector. Therefore, banking and financial firms should make huge investments in technological advancement, if they are to remain competitive.