The Future of Digital Banking Trends

There’s virtually no industry out there that hasn’t evolved over the course of years. Each generation changes with the geopolitical, cultural and economic circumstances of the society that they live in, however, this is not the only reason why these changes occur. New technologies often unlock new options which were, up until recently, completely locked out. What you need to take into consideration is the future of digital banking and ways in which it differs from present-day banking. Here are five trends to help you see the direction in which it’s going.

1.   Simplification

The first major thing you need to take into consideration is the fact that simplified user experience might just be the key to it all. One of the things that users resent the most in the world of finances is the fact that it’s often confusing, as well as that it involves processes and technology that their formal education hasn’t properly prepared them for. This simplification doesn’t end with user experience. What it also envelops is a simplified functionality and simplified language. Instead of using complex terminology, try using adapted simplistic terms. Also, if you can provide support in different languages, this would also be a huge plus.

2.   The difference in medium

Another thing you need to keep in mind is the fact that the banking of the future may not even take the form that it is in today. First of all, traditionally, the majority of people went to a local branch of their bank. Today, on the other hand, it seems as if online interactions and similar aspects were getting more and more popular. The very fact that for an SMB, it takes on average $0.5 to pay a single bill while doing so in person takes up to $12 in person more than shows this difference.

Naturally, paying bills and receiving payments isn’t the only purpose of the bank. With the help of sophisticated chatbots, chances are that you’ll get an instant response to all of your troubles, without having to wait for the real operator. With the help of a chatbot or even some self-fillable forms, you’ll be easily able to make a huge difference in customer service.

3.      Improved visibility and transparency

One of the biggest concerns when it comes to digital marketing trends is the lack of visibility of transactions from both parties. This is why services like secure information sharing may resolve some of these issues with ease. This helps you out with the management of accounts receivables, correspondent banking and enhanced payment methods. The best way to explain this would be to say that it resolves the majority of problems regarding the legacy banking system.

4.   Lifestyle banking

In the past, banks had a range of services that they’re providing to their clients and didn’t invest much time, effort or research in order to figure out the way in which these people actually use banking services. All of this is bound to change with the emergence of lifestyle banking. There are some customers who are looking to buy a home, others who are expat entrepreneurs worrying about the repatriation of their resources. Then, there are frequent business travelers and other groups of people who constantly use banking services in a completely new and unique way. With lifestyle banking, the bank itself will take a much more personalized approach to this.

5.   The evolution of technology

The last thing worth keeping in mind is the evolution of technology in the following 10 to 15 years. You see, there’s going to be a massive change in the bank-customer relationship that stems from improved analytics, IoT and big data. The customers themselves are becoming more and more tech-savvy by the minute, which drastically changes the landscape of the banking industry.

The very last thing you need to understand is the fact that all of these changes are heavily oriented towards the improvements in customer experience. Millennials and members of Gen Z, who are quickly becoming financially more potent, are incredibly tech-savvy. It’s about time that present-day banking caught up.