Digital banking has made significant inroads in the banking sector because of the increase in consumer demand for a more efficient way to access their banking records and complete financial transactions without going to a local branch. With this increased demand, there have been substantial technological advancements at financial institutions, with artificial intelligence at the core of many of these breakthroughs.
Digital Banking Defined
Digital banking is when every part of the banking experience gets digitized. With this increase in digital technology in the banking sector, banks can now let human employees focus on other tasks rather than the day-to-day banking transitions that most users need.
This transformation in the banking industry is not simply limited to making deposits or withdrawals, but it also includes the ability to do things such as apply for loans online. Digital banking also gives customers more access to an incredibly personalized money management system.
Emerging Trends in the Digital Banking Industry
As the rise in digital banking continues, there are plenty of examples of banks that exist only in the digital world. For instance, Kevin Cohee started OneUnited Bank, which is not only the largest black-owned bank but also the first black internet bank.
People like Kevin Cohee have learned that customers want the convenience of digital banking, including being able to do their banking through mobile devices such as smartphones and tablets. Many of the new digital banks don’t draw strength from physical locations; instead, their growth gets tied to the power of digital platforms that are so popular in today’s marketplace.
How Banking Has Emerged in the Cloud
Those familiar with the rise of cloud computing will soon begin to see how this trend has emerged in the banking industry. Today, banking as a service or BaaS is a hot buzzword within the banking industry.
What this means in practical terms is that banks often allow third parties to begin developing applications today that benefit the institutions and their customers. An expansion of digital services and offerings allows banking institutions to cast a wider net over potential customers. It also allows these same banks the ability to market in the digital world in ways they never imagined possible just a few short years ago.
Like so many things in today’s marketplace, digital technology is the wave of the future for a massive number of businesses. As the banking industry begins to jump on this train, the potential benefits for both institutions and customers alike seem virtually limitless.