14.10.2021 Articles

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

Is Digital Banking important for you?

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!

This is a huge opportunity for the banking sector – if it acts quickly. Digital banking can stand as the differentiating element to retain existing customers and gain new ones, with technology playing a pivotal role in achieving this.

Tech savvy, Millennials, and Generation Z experience

How do you craft a digital experience for your customers? By providing them with a robust, stable, highly efficient digital platform. 80% of the digital experience is driven by the way UX has been applied. At Neo-Banks that are 100% digital, the UX weighs a lot more. At this time of rapid post-pandemic global change, one of the most pressing challenges is how to go beyond digital
transformation and improve the digital customer experience (CX), quickly.

Developing vs Purchasing a Digital Banking platform unveiled

You may find your organisation is struggling with the dilemma to Develop versus to Buy a ready-to-use Digital Banking platform. It is a difficult decision to make with various elements to consider and is usually not very straightforward. Each option provides its own benefits to the organisation, so the other questions to ask are how soon do I need this, do I need to connect to other systems, how do I need this to perform?

The ready-to-use digital banking platform seems to be a preferred choice these days since it meets even the most demanding personalisation requirements an organisation might have. This creates the freedom to go live fast without the cost of building and maintaining a complex digital banking platform in house.

If you have decided to buy a Digital Banking platform and scale it up as you grow, can the implementation be demanding? If multiple vendors are involved ranging from back-end systems to the UI/UX design, etc., this might affect complexity and time to market. A digital banking implementation is about experience. It is important to deliver the best experience to users (in terms of tools and implementation time), and to customers (fast and on the spot service).

True digital banking experience

The digital banking platform experience should mimic what the customers have been doing, rather than confusing them. And here comes Finuevo. Based on Profile’s many years of experience in the retail and business banking domains, Finuevo Digital is successfully addressing these challenges whilst letting you focus on what will help you innovate, gain more customers and retain your existing ones by delighting them.

As consumers are very much interested in safe, connected, and personalised financial services, which make their banking easier and more transparent, Finuevo Digital enables the Bank to establish a trusted relationship with each client, with a secure software that delivers, offering competitive digital services and intuitive interfaces to the end-users.

Capitalising on Profile’s many years of international operations, Finuevo Digital has been developed to offer ready off-the-self functionality to automate and streamline operations, deliver self-driven customer journey whilst helping you achieve your business goals, differentiate and innovate. Finuevo enables you to focus on what matters the most for your customers. Give your customers the freedom to bank their way, anytime, anywhere!

Finuevo is the Mobile-First, Cloud-Native Digital Banking Platform empowering financial institutions of any size to achieve digital transformation, onboard customers and offer superior experience. At the same time, Finuevo provides the agility to enable users enjoy seamless and streamlined operations, as well as taking advantage of innovative omnichannel capabilities.