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Thursday, 14 October 2021 | John Dimakos, Digital Banking Director & Michael Kazakos, Product Manager at Profile Software

 

The new digital landscape

Nowadays, banking is fully digital, covering more than what was available via the traditional bank channels, till now going beyond phone banking and e-Banking. Digital banking is also essential to banks as a function to not only retain existing customers and offer them the service they need, but to also gain new clients via competitive and differentiated service offerings. Therefore, it is becoming widely accepted that banking has gone branchless, especially with the increasing number of neo and digital-only banks across the world.

Digital Banking empowers banks to innovate and grow at the same time

In essence, digital banking enables banks to acquire more customers both individuals and corporates remotely deploying the appropriate e-KYC/ e-KYB procedures, increase their revenue streams by offering additional value-added services and products to their client base such as digital wallets, crypto-currencies, insurance and open banking services or personal finance management tools, engaging customers through loyalty schemes and marketing campaigns, just to name a few, whilst minimising development, implementation and maintenance costs.

In the digital space, customers have access to a plethora of new services not available at branch level or phone banking and are able to select and complete what is needed remotely, safely and easily. Services, that in the past required the physical presence in a branch, consuming valuable time and resources from both the customer and the bank, have now become available online for a fast-track service, therefore, branch officers can focus on other products and services to deliver to the customers that can potentially bring more value to the organisation.

A rising Banking trend

Digital Banking has become part of everyday life according to a study from Mastercard across 11 markets revealing that six out of seven people use digital banking solutions at least once a month, 38% do so on a weekly or even daily basis. 63% of the traditional bank’s customers use mobile banking and one in five (20%) already do so from digital-only banks.

Customers demand more digital services from their banks. A growing number of Europeans say they will consider switching to a digital bank at some point (a rise of 18% in 4 years), with people aged 18 - 29 being the most disloyal age group (63% considering a change).

According to ECB, there are more than 4,270 Financial Credit Institutions Worldwide from which 246 Neo banks (as of September 2021),  75 of them are located only in Europe, 42 in Asia-Pacific, 54 in South America and 13 Neo banks in Africa & Middle East.

Welcome to the world of UX driven Banking – Neo Banking!

The world we live in is evolving, shifting from servicing products to servicing people, from channel silos to 360° customer access and from physical presence to digital signatures embracing true digitalisation!

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