The digital age is changing how people interact and do business on a day-to-day basis, and technological advancements are continuing to influence the future of banking around the world. An increasing demand for a digital banking experience from millennials and Gen Zers is transforming how the entire banking industry operates.
From retail and mobile banking, to neobank startups, technology has its hand in seemingly every aspect of the banking industry; and, the influence of technology will continue to launch banking into a digitized future.
Retail banking refers to the specific services banks can offer to consumers – such as savings and checking accounts, credit and debit cards, and loans. Consumers’ growing desire to access financial services from digital channels has led to a surge in new banking technologies that are reconceptualizing the entire retail banking market.
Technology geared toward improving retail banks’ operational efficiency is positively impacting the market. According to Business Insider Intelligence, 39% of retail banking executives say that reducing costs is where technology has the greatest impact, compared to only 24% who say it’s improving customer experience.
Retail banks are also launching platforms in the Banking-as-a-Service (BaaS) space to remain competitive. For example, UK neobank Starling used to exclusively offer business-to-consumer (B2C) retail banking services; but, after launching a BaaS platform, Starling diversified its product and revenue streams, helping it remain relevant in the neobank space.
Mobile banking has become the go-to method for users to make deposits, account transfers, and monitor their spendings and earnings. According to Business Insider Intelligence’s Mobile Banking Competitive Edge Study, a massive 89% of survey respondents said they use mobile banking.
A top concern consumers have when choosing mobile banks is security. The fear of data breach increases the demand for services that keep users’ data secure – allowing consumers to place holds on credit or debit cards, schedule travel alerts, and file and review card transaction disputes are some successful security banking features.
Mobile wallets are another up-and-coming feature in mobile banking. Mobile wallets are applications that emphasize convenience; they allow users to make purchases online or in-store with their smartphones – without ever having to take out their physical credit card.
Successful mobile banking options also include money management features that help users cut spending and grow savings. The future of mobile banking points toward offering savings tools and financial wellness scores,…