Innovations That Deliver the Digital Banking of the Future

There are several ways banks can mitigate the threat of new entrants in the financial services industry. Evolving customer expectations and a pandemic-prompted acceleration of the financial services industry’s digital transformation, digital banking has become essential for most banks. Technological progress has nevertheless changed things like Internet banking, mobile banking, etc. The future of digital banking will see banking, payments, and investment solutions merge into simple, secure, and comprehensive apps. Platform banking would provide a digital marketplace for banking (and perhaps even non-banking) services.

Cloud Computing

Banks are facing a growing number of competitors entering the financial market - fintechs, Biotech and even non-financial players.  To compete with them successfully, incumbents need to act with agility and speed. Many are already turning to the benefits of cloud technologies when crafting their digital strategies.

Cloud computing allows banks to store data and applications, and use scalable computing resources on-demand via the internet. The percentage of banks that have deployed cloud computing increased significantly in the leading public cloud providers (like Microsoft Azure, Amazon Web Services (AWS) and Google Cloud Platform) offer a range of services to banks, allowing them to build and scale innovations.

Big Data Analytics

Organizations can use extensive data analytics systems and software to make data-driven decisions that can improve business-related outcomes. The benefits may include more effective marketing, new revenue opportunities, customer personalization, and improved operational efficiency. Big data analytics is a form of advanced analytics which involve complex applications with elements such as predictive models, statistical algorithms.

Banks can leverage data from various sources, such as online and mobile payments, ATM withdrawals, digital banking channels (mobile banking app, internet banking, e-wallet), IoT devices, and customer data collected for KYC, biometric authentication, etc.

Process Automation Tech

Automation is the procedure of replacing manual, time-consuming, repetitive human tasks with automated systems that provide greater accuracy and speed that allows the bank to achieve operational agility, reduce costs, improve customer service, and accelerate digital transformation. The growth in API deployment among banks and credit unions is more focused on efficiency of all the hype surrounding AI-based technologies like chatbots, machine learning, and robotic process automation, few financial institutions beyond the 25 largest are doing much with these tools.

Deployment of robotic process automation (RPA) increased significantly last year, however, among both banks and credit unions. With heavy reliance on vendors for their technology applications and relatively small IT shops, most mid-size banks and credit unions don’t have the internal resources to experiment with and develop AI-based solutions. APIs are about speed, agility, and personalization. Until then, however, core banking vendors are missing opportunities to help their bank and credit union clients with their innovation agendas. Just one-fifth of banks and a measly 7% of credit unions say that their core banking vendor is significantly contributing to their digital transformation agendas.

Internet of Things

IOT has evolved from simple computing and short range wireless communications to powerful data processing and the ability to monitor and control objects from long distances with minimal to no human intervention. It is a network of devices connected through the internet (such as Smartphone's, home appliances, wearable's, vehicles, etc.) that collect and transmit data. Banks can make use of IoT in various ways.

Once used as a tool for an application, Internet of Things (IoT) has become one of the widest ecosystems today.  From logistics, accounts, marketing and even team performance have all been supported by technology these days, and the trend seems to be just catching up.

Consumers use different apps depending on who they’re paying or getting paid. IoT technology enables consumers to pay for goods (like coffee and food) by simply putting their wearable's (such as smart watches) near the point-of-sale terminal in the store. Wearable can also perform other transactions anytime and anywhere.

Biometric Technology

Biometric technology allows financial institutions to balance security, speed, and convenience for a seamless customer experience. They are physical human characteristics (such as fingerprints, iris, and voice) that can be used to verify the identity of customers. Unlike PINs or passwords, biometric identifiers are impossible to lose or forget, and much more difficult to hack. By 2023, the need for a secure and smooth authentication process will prompt nearly 2.6 billion biometric payment users. With the ease of use and availability, biometric technology should offer a unified, superior customer experience across all payment channels from Smartphone's and ATMs to smart home devices. Here are some of the key ways that banks can use biometric technology to improve remote experiences:

Mobile banking: Financial institutions include biometrics in their mobile apps to let customers safely transfer funds or access their banking accounts while on the go.

Digital onboarding: Biometric authentication allows banks to simplify and speed up due diligence and KYC processes to mitigate risks and ensure excellent on boarding experiences.

ATM transactions: Banks can implement biometric identifiers like fingerprint scanners in ATMs to make sure that only authorized customers can use ATM services.

How can Software Group lead to Deliver the Digital Banking

Technology has taken over the world, and conventions are quickly becoming obsolete today. Further technological advancement is only improving the user experience that the digital banks provide.

The digital banking market is ripe with competitor pressure, price hikes, changing trends, and customers' tastes and preferences. As the platform that will adjust itself to evolving situations. Our services include security via authentication, payment modulator, document preservation, and maintenance of trusted communication

Driving the digital transformation of financial service providers worldwide, Software Group is committed to building impactful digital banking solutions that enhance financial wellbeing and take customer experience to a new level.

From self-service banking and remote account opening to chatbots and biometric authentication, we leverage the in-depth knowledge of cutting-edge technologies to help banks and other financial institutions embrace the opportunities of the digital future. We innovate to meet the demands of the new decade, including instant solutions, robust security, ultimate convenience, reliability, and inspirational design.

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