Why are changes needed in Digital banking?
Digital banking has been on the rise for several years now, but it is expected to see even more growth in 2023. The banking industry is changing rapidly, and the way customers interact with their banks is also changing. The following are five key drivers that will contribute to the growth of digital banking in 2023:
Increased use of mobile devices:
With more and more people using smartphones and tablets, it’s becoming easier for them to access their bank accounts and conduct transactions on the go. Mobile banking apps have become increasingly sophisticated and user-friendly, offering customers the ability to check account balances, transfer money, pay bills, and even deposit checks with the click of a button. This trend is expected to continue in 2023, with mobile banking becoming even more popular. Banks that invest in mobile banking platforms will be better equipped to meet the demands of their customers and stay ahead of their competition.
The rise of open banking:
Open banking is a concept that allows customers to share their financial data with third-party providers, such as fintech companies, through secure APIs. This will enable customers to access a wider range of financial services and products, and will also allow banks to offer more personalized services. Open banking is also expected to increase competition in the banking industry, as new fintech companies will enter the market, providing customers with more options. Banks that embrace open banking will be able to leverage their customer data and offer new services that will help them to retain their customers and attract new ones.
The growing importance of data security:
It’s becoming increasingly important to ensure that customers’ personal and financial information is kept safe as more and more financial transactions are conducted digitally. Banks will need to invest in advanced security measures to protect against fraud and data breaches. This includes encryption, multi-factor authentication, and biometric security. Banks will also need to implement incident response plans to quickly detect and respond to any security breaches.
The emergence of new technologies:
Technologies such as artificial intelligence, blockchain, and biometrics are expected to become more prevalent in digital banking in 2023. For example, AI can be used to offer personalized financial advice and to detect and prevent fraud, while blockchain can be used to speed up and secure financial transactions. Biometrics can be used to enhance security and provide a more convenient way for customers to access their accounts. Banks that invest in these technologies will be able to offer more advanced services to their customers and stay ahead of their competition.
The changing customer expectations:
Customers are becoming increasingly comfortable with digital banking and are starting to expect more from their banks. They want to be able to access their accounts and conduct transactions quickly and easily, and they also want to be able to access a wide range of financial services and products. Banks that can offer a seamless and convenient digital experience will be able to retain their customers and attract new ones.
Digital banking is expected to continue to grow in 2023, driven by factors such as the increased use of mobile devices, the rise of open banking, the growing importance of data security, the emergence of new technologies, and changing customer expectations. To keep up with these trends and stay competitive, banks will need to invest in digital transformation. They will need to provide their customers with convenient and secure digital banking services and leverage new technologies such as AI and blockchain.
How can S–Square help the banking industry?
S–Square has great experience and highly skilled professionals providing a wide range of services that helps organizations in embracing of new technologies and navigating changes needed across the banking sector.