Future Of Banking: Digital Banking To Rule The Post-Pandemic World

  • 20 Dec 2021 15:50
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Future Of Banking: Digital Banking To Rule The Post-Pandemic World

Today’s digital age has changed the way people interact and do business. Technological advancements such as artificial intelligence (AI) and the Internet of Things (IoT) are continuing to influence every industry across the world and the banking sector is no exception. What’s more, the advent of blockchain technology has made some fundamental changes.

With the introduction of blockchain and AI, customers got a taste of the perks of personalization and now, they expect such benefits from banking services. According to Allied Market Research, increased investments to offer personalized banking services to end customers and the advent of digitization drive the growth of the global banking service market. That’s why there is increased competition between the market players to offer more personalized banking services.

Launch of novel personalized banking services 

Albo, Mexican banking FinTech has recently announced to offer personalized business banking services, named albo empresas, along with individual services. The services aim to deal with banking issues such as losing time while making payment. According to the company, using albo empreas, enterprises can transfer and receive money and disperse funds as well as keep track of their finances through reports that could highlight the financial health of the enterprise. According to the project manager, Alejandra Lascurain, the concept for the project conceive due to the customer’s feedback, which gave them an overall idea about what services customers demand.

Similarly, Shopify, the Canadian e-commerce company, announced to launch Shopify Balance, a new platform for merchants to manage their cash flow, track expenses, and pay bills. Moreover, the platform would include physical and virtual cards, which can be used to access their money and earn more rewards after their expense. It is observed that merchants often combine their business and personal finances, which makes it difficult to identify the financial health of the business. The platform helps them distinguish personal and business finances. Moreover, the company has launched Shop Pay Installments that enable to shop-now and pay-later facility.

Digital banking: Future of banking services

Currently, banks have their hands full in the light of the Covid-19 pandemic, when businesses and borrowers face financial uncertainty, employees face job losses, and industries face declined sales. Apart from managing the direct impact of a pandemic, banks have to come up with developing a contingency plan and invest in implementing digitization for remote customer transactions.

As the World Health Organization (WHO) has encouraged people to use contactless payments and avoid banknotes as much as they can. This has increased the need for digitization in the banking service industry. This shift toward digital banking is expected to continue well after the pandemic and thus, several banks have adopted several technologies for their employees so they can work from home. 

For instance, Singapore’s DBS bank is expected to offer a template regarding how a branchless bank would seem during the pandemic. Now, the bank expects to offer its customers a robust banking system. On the other hand, the Bank of Korea has initiated to offer quarantine bills coming from local banks and keeping them isolated for two weeks. Such steps lead toward complete digitization of banks and even in the post-pandemic world, the trend is bound to continue.

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Allan Farington By, Allan Farington
I am Allan Farington. I'm glad to expose you to any tech gadgets for your home or company on this Sublime site. We aspire to be the most detailed reference for all concerns related to technology items.
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