In recent years, there has been a significant shift in the banking industry towards digital banking. With the rise of FinTech and online-only banks, traditional banks are facing stiff competition. This trend is important to understand because it has significant implications for the future of banking. This article will provide an overview of the growth of digital banking, the impact of digital banking on traditional banks, and the future of the banking industry.
Speaking of the growth of digital banking, it has been quite significant in recent years. Why? Because of factors such as advances in technology, the ubiquity of smartphones, and the rise of FinTech companies!
FinTech companies, in particular, are changing the way people interact with banks by offering user-friendly digital banking services. One such example is Evolute Fintech Innovations, which is contributing to the growth of digital banking by offering an online trading platform that is secure, reliable, and easy to use. EFIN’s platform enables users to trade digital assets seamlessly, circling back to the growth of digital banking.
Now, let’s understand the difference between Digital banking and traditional banking.
Digital banking
- Transactions can be conducted through smartphones or computers
- User-friendly, faster, and convenient
Traditional banking
- Physical visits are required o perform most transactions.
- Personalized service, face-toface interactions, and a wider range of services.
The question to ask now is how digital banking is impacting traditional banking.
Here’s the answer:
As mentioned above, traditional banks are facing the heat with the rapid growth of FinTech companies and online-only banks. As a result, they are being forced to adapt to the changing landscape. Traditional banks are responding by investing in digital technology, improving their online banking services, and offering more user-friendly mobile apps. Additionally, traditional banks are also exploring collaborations with FinTech companies to enhance their digital capabilities.
This means that the future of traditional banks is uncertain. While digital banking is on the rise, traditional banks are still important players in the banking industry. However, traditional banks will need to adapt to the changing landscape by investing in digital technology, offering more userfriendly services, and collaborating with FinTech companies like Evolute Fintech Innovation, who are contributing towards the rise of Digital banking through their wide range of products. Traditional banks will also need to continue to provide personalized service and face-to-face interactions to differentiate themselves from online-only banks.
We find that collaboration with FinTech companies is an important trend in the banking industry. Traditional banks that have partnered with FinTech companies have been able to successfully enhance their digital capabilities and offer more user-friendly services. So the trend is likely to continue in the future as traditional banks seek to remain competitive.
Conclusion:
Digital Banking. Transformation of traditional banks
As is the nature of things, the latest and newest innovations will always either completely, or partially, replace outdated trends and technologies. This is what we are currently witnessing in the financial sector, with the attitudinal shift of millennials, who are increasingly preferring digitization and have become the biggest consumers of financial products and services.
But don’t just believe us. Here’s the shift in consumer behavior, backed by statistics: over 70% of financial customers use online banking or digital services at least once every month. The number itself is a testament to the shift.
Fortunately, banks have picked up on these winds of change and are seen adapting themselves by investing in building more mobile channels and delivering new opportunities. They are waking up to the new reality where digitizing the SOPs is the way forward and a means of satisfying their clients.
This means that the fog over the future of banking is lifting up: increased trust and dependency on AI, is making people trust banks more, creating a need for deep personalization of bank accounts and secure operations.
All of these trends show the direction in which banks are moving. While there’s no certainty that physical branches will become completely redundant in the near future, digital banking is primed to see continue witnessing an upward surge.
We conclude by saying that transition is inevitable in the financial sector whether banks endorse it or not and that it behooves to be on the right side of change.
