The banking industry is evolving fast. Increased consumer demand for Internet-based services is disrupting the way banks do business.
Customers expect mobile apps, online bill payments, and instant money transfers as standard features. Around 50% of consumers now use mobile apps or websites for their banking at least once a week. That is up from 32% in 2018, research shows.
Some banks are rushing to catch up. Others are at the forefront of the change. Here are three digital finance trends that are changing the consumer banking experience.
1. Innovative Digital Banking Technologies
Digital banking refers to the digitization of banking services. It affects all aspects of their operations, from the back office to customer apps.
Demand has grown as consumers look to access their accounts online. They also want to be able to complete transactions without having to go into a branch.
Banks and financial technology (fintech) companies are responding to the change in demand. They are offering personalized experiences through apps and mobile sites. This is helping them to stay ahead of the competition. They are taking the opportunity to develop innovative technologies to offer new services.
Financial institutions are using artificial intelligence and machine learning to offer customized features. These help customers to gain greater visibility into their finances and encourage loyalty.
Institutions must increasingly build out their financial technology infrastructure. They need to make sure they have the speed, agility, and reliability to attract and retain customers.
2. Seamless International Money Transfer
With more people traveling and working abroad, there is more demand for fast payments to other countries. International payments tended to be slow and expensive in the past. They would take several days to complete and incur high fees.
But fintech companies are stepping into the gap. Cross-border payments firms are providing fast and affordable services. They allow customers to transfer money online in an instant. And they offer competitive exchange rates with low transaction fees.
Comparison sites like wiresmartly.com/compare help customers to identify the international money transfer services with the features they need.
3. Cybersecurity of Increasing Importance
Lockdowns during the COVID-19 pandemic have accelerated the transition to digital services. But that has also increased the threat of cyberattacks as hackers take advantage of gaps and flaws in their security.
Cyber and ransomware attacks have multiplied since the start of the pandemic. Between February and April 2020, cyberattacks targeting the financial industry soared by 238%, according to software company VMware.
Hacking customers’ personal information in the banking sector is especially damaging. Why? Hackers can not only steal their identities but also access their bank accounts. This requires banks and fintech firms to focus on cybersecurity as they develop new services.
The financial sector must adapt its security strategy in line with the new reality.
Digital Finance Is Changing the Customer Experience
Emerging trends in digital finance will continue to evolve the customer experience. Online services are making international money transfers and other features more accessible. Banks that offer personalized services build customer loyalty and drive growth.
For more on digitization trends, check out the finance section on our blog.