The Rise of Digital Banking: How Technology is Redefining Financial Services
Finance
Technology
28th July 2024
Invos Global
Digital Transformation in the Banking Sector
Over the past few years, it has become apparent that the banking sector has witnessed massive changes and is at an age of digital transformation. With the advancement of technology, more and more banks are shifting from conventional, physical-based services to the virtual services that modern customers require. Now, we can see that this movement toward digital banking is not a trend; it is the new way to deliver and consume financial services. Online applications and the mobile interface make banking even more convenient than it has ever been, perhaps in the fruition of this period.
The Role of AI and Big Data in Enhancing Customer Experience
This process, in turn, is driven by the need to save time above all else; people simply do not want to waste their time on something that can be done by AI. Today’s consumer is mobile, and he or she would like to undertake his or her financial transactions at any point in time and not necessarily from the comfort of his or her seat. Digital banking provides exactly that: availability, account access and transactions, bill payments, and the opportunity to apply for a loan at any time of the day or night. This level of convenience is revolutionizing customer expectations and thereby challenging the banks to search for new ways of executing their services to meet these new standards.
AI and big data help the customer improve the digital banking experience. Chatbots and virtual assistants are now very popular; they help customers resolve their issues quickly and offer custom service. They can range from basic, frequently asked questions to questions that require one to understand and explain certain financial products while still being easy to use and efficient. Big data, on the other hand, enables the bank to gain a far-reaching understanding of the behavior and preferences of its customers. Banks can also analyze a large
Big data, on the other hand, enables the bank to gain a far-reaching understanding of the behavior and preferences of its customers. Banks can also analyze a large number of clients’ data and, based on the results, make predictions of clients’ needs and provide them with products and services that will meet the purpose they are needed for. It is a way that enhances the impact that banks have on their customers or clients’ satisfaction while at the same time fostering long-term business bonds between them.
Challenges in the Era of Digital Banking
AI and big data help the customer improve the digital banking experience. Chatbots and virtual assistants are now very popular; they help customers resolve their issues quickly and offer custom service. They can range from basic, frequently asked questions to questions that require one to understand and explain certain financial products while still being easy to use and efficient. Big data, on the other hand, enables the bank to gain a far-reaching understanding of the behavior and preferences of its customers. Banks can also analyze a large
The fourth challenge is again related to the divide, that is, the digital divide. Customer accessibility to the Internet and consumer digital literacy to manage money on the Internet are not equal. When designing digital services, banks have to keep these factors in mind as part of meeting the whole population of the economy. Closing these gaps is crucial in order for people with low levels of IT literacy to also be able to take advantage of the opportunities of digital banking.
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