The two sides of Digital Banking: a great opportunity to expand this financial niche but also many challenges that prevent it from becoming a truly universal way of banking.
Digital banking goes beyond just online or mobile banking platforms. It involves the complete digitalisation of all activities, programmes and functions. And it doesn’t just require the digitalisation of services and products, the front-end that customers see, but also the automated back-end processes and the middleware that connects them. The transition from traditional banking towards digital banking is marked by different rates of progress. This is a journey where new technologies like blockchain, big data, artificial intelligence, cognitive systems and the Internet of Things have driven the complete digital transformation of the finance world to improve the customer experience, create high-value digital services, guarantee sustainability and maximise efficiency and profitability. At the same time, mobile banking is starting to stand out and reveal itself as an opportunity for banks to generate more revenue through transactions.
- Old inherited banking systems, language and platforms with a complex, antiquated architecture that require a profound transformation, an intelligent systems solution and central processes.
- Being able to offer customers the necessary information and options to make decisions. Treating the customer with respect.
- Opening appropriate service/assistance channels and consulting with the customer when designing products or offering new tools so that the consumer can take control of their decisions.
- The generational gap. Not all customers are familiar with mobile banking.
- Complete digital banking. Customers tend to be reserved about using a digital bank that has no physical branches; This makes complete digitalisation difficult.
- The emergence on the scene of competition from non-financial tech companies and institutions who have unfair advantages, given that they are more flexible and agile and don’t have the same obligations and rights.
- Internal barriers. The digital transformation is a complex process and requires specialists to implement it.
- Absolutely essential to attract or retain customers who want to be sure that their identity won’t be stolen, that fraudulent payments won’t be made from their accounts and that electronically signed banking contracts have the same legal validity as printed ones.
- Strict regulatory requirements, such as PSD2, which oblige organisations to protect themselves from cyberattacks in order to comply with their risk management obligations.
- Security: Banking security is about more than just preventing the spread of computer viruses. Banks need to protect themselves from cyberattacks and online fraud.
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