At the present era, we are witnessing groundbreaking opportunities for banks where innovative technologies have been fully grown and are delivering exhaustive changes across the world. Having the digital banking process implemented is one of its aspects. For instance, technology developments are driving Sweden towards a cashless economy with a very little need for bank branches. This is resulting in making Sweden rank no. 1 in having the banking process fully digitized. In India, the recent step of demonetization taken by the government is one of the moves towards digital banking.
Digital banking is basically the addition of the innovative technologies across the entire financial service structure with the sole aim to bring changes in internal and external corporate and personnel relationships and to offer the extended customer services and experience. Now, let’s get to know in detail what turn will digital banking take in the time to come.
Getting digitized is not a new scenario that we all have or going to experience. Over a long period of time, it has been happening differently in various industry verticals. Remember the era of 1990s? Where music, photography, retailing, video each one was influenced by the new entrants having extensive digital capabilities. On this basis, we can say that the future of digital banking consists of the dramatic impact the way customers interact with different financial concepts or services. For instance, customers will more prone to embrace online services rather than visiting the branches physically.
The role of your smartphone in experiencing the novel digital banking experiences is huge and the steps to replace your payment cards with the phone have already been taken. This is the result we have NFC enabled Android phones which allows your phone to work like a contact-less card. In addition, the latest version of Android also supports HCE that is Host Car Emulation. The addition of such technology will surely ensure the security of the NFC chip and we can expect Android mobile app for banking start backing tap-to-pay in a short span of time.
Presently, major banks are focusing on their core retail banking apps as the the chief activity and the move is quite rational. However, once they start using digital banking as a substitute affordable channel they may introduce customized and specific apps to get a hold of a large community of customers. For instance, international money transfer service providers who have been growing enormously for their key characteristics of being extremely convenient and cheaper. In the similar fashion, banks too can attach such services into their core banking apps. Moreover, they can use it to get new customers with a targeted money transfer app digital marketing campaign.
Our smart devices (especially our loving smartphone) are now playing the roles of tracking tools for a number of enterprises, majorly e-commerce. They keep a tab on all your activities- traveling abroad, making transactions, shopping for instance- and then offer relevant services. Surprisingly, banks have already been practicing this and they may come up with something surprising the next moment. Apart from this, banks can step forward to launch a digital brand for enabling the new digital brand to compete differently.
On the whole, we can firmly state that digital banking is in its infancy in India and there is lot to do and achieve to have this implemented. We also have to evolve our infrastructure for its success. Besides, banks must introduce new digital capabilities for delivering an exceptionally new service. Banks should act smart and must put themselves into the shoes of many other industries including retail, news, entertainment, etc. to come up with something innovative for the end customers, and yes must start thinking beyond their ‘Banking App’.