Digital Banking: The Future of Banking

There have been drastic changes in the banking industry over the years. Recent trends in finance, such as open banking, Cashless withdrawal at the ATM, Bankcards, and POS withdrawal, lead people to believe that the herculean task of standing in banks has been tackled. However, the question remains: could these trends be the future we have always dreamt of?

The known meaning of “bank” has undergone so many changes. This has made the traditional banks face massive threats from what technology has to offer to the banking industry and human experience at large. Bank processes are experiencing distortion and the normal day to day interactions with customers are being repositioned.

Banking has improved from what it usually was and is migrating further to what it can be at a faster rate. The future of banking now relies on the extent to which banks utilize rare opportunities available to them. It also depends on how they use the massive information they are provided with. Additionally, it hinges on the innovation they can come up with and the extent to which their tactics, methods, and activities revolve around consumers’ everyday life.

Understanding the Needs of Customers

An obsession with customers will play a critical role in the future of banking as banks will be preoccupied with the customers’ problems and will always have their customers’ interests at heart from the beginning to the end.

Customer habits and priorities are being re-aligned to banking with speed and efficiency. They want a situation where the solutions to their problems and answers to their questions will be provided immediately on their mobile phone. Customers do not want to go to branches and stand in a queue; they want financial information at the tip of their fingers and the ability to transact at the touch of a button.

The bank of the future will be a technological firm that will focus on banking and this is where digital banking comes in. Digital banking Is the digitalization of banking services to reduce risk, improve efficiency and serve customers better.  Digital banking allows customers to deposit money, withdraw money, apply for loans, check account management, make payments online using their smartphone, and more.

Key Difference between Online Banking and Digital Banking

Digital banking provides a lot of benefits for both banks and customers. While customers save time and stress that come with traditional banking transactions, banks save money on physical infrastructure by moving a part of their transactions online.

It is important to note that there is a difference between online banking and digital banking as people often misplace the two. Online banking focuses mainly on remote deposits, money transfers, bill payments, and basic online management of accounts. Online banking could also be referred to as e-banking, virtual banking, or internet banking but digital banking focuses on digitizing the major aspects of banking. It involves digitizing every program and activity carried out by financial institutions and their customers.

Embracing Digitalization in Banks

Looking at the future of banking, going digital is no longer an alternative for firms who wish to survive. It’s a must as the progress of Digital banking is moving at a fast pace with no signs of reducing its pace. Accessibility, rate of operation, and confidentiality are not just extra bonuses to consumers anymore. They are now standard essentials of the rapidly improving customer-bank relationship.

Consumer choice has moved to online and mobile devices. This shift has caused many financial organizations to struggle with moving banking experiences to online channels and the smaller mobile device screens. As customers are increasingly willing to switch banks for digital features such as bill payments, mobile payments, and loan applications, banks are trying to meet up with these changes.  A lot of banks have integrated their services smoothly into their customers’ daily lives.

However, in the course of providing new platforms for banks to react and respond to customer needs, the digital realm also offers an increasingly competitive playing field, with competitor banks regularly entering the market. We are fond of hearing of new banking brands presenting incentives to persuade customers to trade banks. This tug of war is putting additional pressure on banks to do better than the other, to retain customers and promote long-term loyalty.

Short-term cash incentives, however, will be in vain if a company’s long-term digital experience is not up to standard. Lost customers depict lost income, a negative effect on brand reputation, and market share attrition. To procure and retain a competitive edge, banks must have a good knowledge of what consumers require from them online. They must then live up to these demands.

The future of banking is digital. While security and cost-efficiency are important, the worth of digitalization is what the customer stands to benefit from it. Customers believe that digital banking has made life easier for them. It has allowed them to enjoy the simplicity of managing all their finances in one place. Additionally, they can set up automatic payments or make deposits anytime and anywhere.

The Future Bank: Understanding the Position of Mint Digital Bank

Finex Microfinance Bank realized on time that the future of banking meant serving their customers better. This made them spend time and money to come up with a digital bank, Mint Digital Bank.

Mint Digital Bank is a tech start-up based in Lagos with a tech product that is restructuring the bank industry. “It has made customers forget about queuing up in bank branches to carry out transactions. You can transfer money, request money from Mint customers, pay bills, buy airtime. You can also request and pay back loans, and much more—all with just one app.

Mint allows you to manage your finances personally. With the Mint app, you see your inflow and outflow in simple terms. You can also set spending limits, lock your card and make plans. Mint also allows customers to save money as much as you like for that big project.

Mint account is provided by Finex Microfinance Bank ltd.