It has been made clear during the pandemic that innovation and digital transformation in the banking and finance industries were sorely needed, but thanks to the advances made in recent years, it is now helping to provide flexible solutions and improve strategies in a quicker, more convenient and more personalised way. PSD2 (Payment Services Directive) has put the customer at the centre of the digital transformation, where they have total control of their banking data and transactions and are better protected in cases of theft or fraud. The payment relationship with the customer has been liberalised, and their data has ceased to belong to any third-party, thereby improving the user experience. As a result, the payment process is more agile and secure, and purchases are faster.
As well as the user experience, the experience for the banks themselves has also been transformed. The payment industry requires technology, data and a user experience. Customers want personalised services, offers, advice and alerts. For these to work well, service providers need to convert the wide scope of customer information into usable knowledge using tools that are capable of processing vast amounts of information and making decisions so that banks can offer customers personalised offers through their preferred channel. These algorithms will aim to decipher customers’ emotions and feelings in order to interact with them in an increasingly ‘human’ way.
For example, you might ask your smart bank about options for increasing your savings by 10% over the next two months. You might then receive an answer saying something like, “Compared to people with similar profiles, you currently spend 24% more on heating and 12% more on leisure. We recommend that you review these expenses and try to reduce them”. Another example in this new scenario could be that, when a customer makes an online purchase, the digital bank could warn about any potential payment delays or advise which card to use by looking at your balance and transactions coming up in the next few days. The reality today is that financial organisations are increasingly committed to putting the user at the centre of their business instead of the product.
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The challenges of digitalisation in the banking sector: a personalised user experience, digital payments and a profitable relationship with the customer.
The digitalisation of the banking sector is an important, necessary and unstoppable process which provides better, more secure services. Computer applications, biometric systems and enabling