The digital transformation journey is unique for every company and every bank, but there are best examples of digital transformation to use while switching to digital financial services. Digital banking opens up the door to being flexible and comfortable for your clients.
COVID-19 wasn’t the main driving force for digital transformation in the banking sphere. It was mostly driven by changing customer demand, high competition, and technology advances. However, the global pandemic has accelerated the digital transformation journey. Let’s find out what digital transformation means for the banking sphere 🔽
Table of contents
What is digital transformation in the banking sphere Overview of key technologies for banking app development Investment banking and digital transformation Retail banking and digital transformation Benefits of digital transformation for the banking sphere Summing up
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What is digital transformation in the banking sphere
The 2020 pandemic takes every sphere of human activity to the next level. Financial institutions are made to quickly adapt to the new normal, transform their operations, and find new ways to serve customers.
COVID-19 isn’t likely to vanish into thin air in the upcoming months. A vast majority of companies and organizations all around the world miss their financial targets because of dampened customer demand and operational disruptions. Companies, as well as banks, should prepare for the long haul and think about ways to continue their work even under the lockdown.
Digital transformation in the banking sphere has started long before the COVID-19, but the process was quite slow. And with the new normal, its pace has skyrocketed. Despite the industry and business niche, the primary aim of digital transformation is a seamless integration of software and computer technologies in your business workflows. And according to Statista , the following trend is on the rise and growing.
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Overview of key technologies for banking app development
There is a wide range of technologies used for the digital transformation of the banking sphere. First-class banking apps should take advantage of the recent technologies to bring the most value to banks and clients. Here are some top technologies used for fintech app development for the banking industry 🔽
Blockchain
Blockchain is quite a popular technology for banking app development. Blockchain helps build better interfaces, develop powerful apps, and secure transactions. With blockchain, you don’t need third-party services for different operations. Thus, customers will trust your app even more.
Internet of Things or IoT
IoT has no rivals when it comes to real-time data analysis. IoT-powered solutions can help make the customer experience more personal and deliver individually-tailored offers. And thanks to wearables, your customers can easily make contactless payments.
While providing great comfort, IoT can be used with risk management and access to accounts. You can take advantage of biometric sensors to make your app or platform more secure and protected.
Photo by James Harrison / Unsplash Artificial Intelligence
AI has also found its place in the banking sphere. Developers take advantage of AI to create online assistants or chatbots to help customers find the necessary information or solve minor problems.
Apart from chatbots, AI can be used for data analysis and security. For example, AI can spot money laundering activities by analyzing customer data in a few seconds.
Cloud Computing
Cloud computing also helps banks become more efficient and innovative. Banks can improve operations and deliver better products and services faster. Along with IoT, cloud computing can be a great asset for risk management and creating a secure environment for financial operations.
At Mova.io , we take advantage of the latest technologies to deliver first-class products. Need a custom mobile app for your bank? Contact us, and let’s start your digital transformation journey.
Investment banking and digital transformation
Investment banking is a laggard when it comes to digital transformation. It deals with business and high risks because investments may become a great loss for a bank or any other financial establishment.
Frankly speaking, investment banking could easily fail without a proper digital solution since there are lots of fraudulent schemes and growing competition in the fintech market. Let’s find out how custom-built apps can help investment banking 🔽
Fraud Detection
According to Get2Growth , there are only 305 startups worldwide. And without proper detection, it’s hardly possible to find out which startup is real and which one is going to vanish into thin air as soon as they get the investment money.
Most banks have already built their custom fraud detection systems that helped them reduce or even eliminate the risk of giving loans to fakers. As a rule, these software solutions take advantage of Machine Learning and Artificial Intelligence technologies to detect fraudulent actions.
Market Analysis
Banks need analytical software not only for forecasting but also for choosing the right direction of the business strategy. The digital transformation doesn’t happen in isolation, it changes the conditions for all businesses and the banking sector as well.
A custom-built analytical app or platform can collect valuable data and draw up a detailed forecast for the next months or even years. This forecast can help you adjust your business strategy and choose the right development direction. While developing an analytical app for the banking sphere, you can choose multiple market modeling scenarios and add the features that you really need.
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Big Data
When it comes to fraud detection, forecasting, and analytics, Big Data has no rivals. Banks can benefit from Big Data by customizing offers, detecting frauds, and increasing the safety of banking operations.
Moreover, the following data can help build and adjust the customer journey to increase satisfaction and retention rates. In addition to customer retention, Big Data can protect your business by forecasting future changes. The following allows you to be more careful with your decisions, partnerships, and business growth.
Retail banking and digital transformation
Retail banking deals with the B2C sector and has its own peculiarities that need custom mobile and web solutions. Let’s explore how technologies can change the retail banking sector 🔽
Fraud Detection
Manual check of a loaning request may take hours or days and still, there are high chances of missing out on some vital data. And this may result in bad decisions for the banking institution. However, banks have already built and integrated software to speed up the validation process and make better decisions.
It’s better to have access to official databases to check and validate your customers by looking through their credit and administrative history. In a vast majority of cases, social media profiles can help identify frauds.
Big Data
Retail banking has thousands of clients and transactions every day. And Big Data can help you analyze the behavior of your clients and make your services better. Clients expect payments and any other transactions to be performed immediately. And when the system needs more time, it results in a bad customer experience. And thus, your customers are going to look for faster banks and switch to the services of your competitors.
Internet of Things
IoT integration plays one of the key roles in your digital transformation journey. IoT along with AI can customize the banking operations better than anything else. The following solutions can collect and analyze personal data that you can use for creating personalized offers.
One of the biggest challenges of retail banks is to find the right development team to create custom solutions. At Mova.io , we know what technologies and mobile apps can improve the banking sector. Contact us and we’ll tell you more.
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Benefits of digital transformation for the banking sphere
Digital transformation opens up new possibilities and opportunities for both financial institutions and customers. Clever approach and smart applications can bring quite a lot of benefits.
Accessibility
Bank accounts are just a few clicks away. Customers can get access to their private or corporate bank accounts at any device and at any time. This can bring more customers and increase customer satisfaction since your clients will be able to manage their accounts and keep track of their balance 24/7. Additionally, there is no need to go to the bank and get checks, they can be emailed in a few clicks.
Improved Security
Even the most sophisticated software cannot protect accounts from phishing, hacker attacks, etc. However, proper data encryption saves banks from any leaks of banking information to competitors or frauds. And it improves transaction security as well.
Around-the-Clock Services
Users can take advantage of online banking services 24/7 all year round. And even on the weekends. With banking apps, users don’t need to spend hours in lines and wait to make a simple transaction. That’s a major benefit that comes along with custom digital solutions.
Simplified Account Management
Users can easily manage their accounts via online banking solutions. They can add new information, update the existing or contact online support and get help. Users can create templates or set automatic payments without re-entering data for upcoming payments.
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Time Efficiency
With advanced banking solutions, you can save your users a lot of time. Your clients don’t need to go to the bank and carry out some simple transactions. They can access their bank account wherever they are and whenever they want.
Automated Payments
In case your users have monthly payments, you can provide automated transfers. Users just need to create a payment and schedule it.
Summing up
Digital transformation in the banking sphere is developing at a blistering pace and only gaining its momentum. In the upcoming years, the banking sphere is going to change dramatically due to the customer needs and COVID-19 restrictions.
The transformation journey isn’t easy and it takes a lot of resources, but the game is worth the candle. As a result, your services will be more accessible and secured at the same time. Moreover, mobile app solutions for the banking sphere can also enhance the level of customer satisfaction. The banking services are getting better and better thanks to technological advances and custom-built banking apps and systems.
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