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Digital Transformation – The Future of Banking and Financial Services Part 1

Author by Jeremy Solsaa

A study from Juniper Research indicated that digital banking users will exceed 3.6 billion by 2024, which would be a 54% increase from 2020 digital banking users.  This growth is being driven by several factors:

  • The rise of digital-only banks that provide online or mobile only accounts that typically do not have branches.  The account is managed online, and monies are accessed with a debit card.
  • The ongoing emphasis on digital transformation by the established banks across the industry offering online and digital services, with the backend changes to support these services.

Various digital banking technologies are on the rise to support these efforts and increasing digital banking users.  These technologies include artificial intelligence, blockchain, cloud computing, IoT, no-code/low-code app development, and banking as a service (BaaS).

Banking is moving behind the scenes.  You tap to pay a transaction for a coffee. You drive through the Chicago tollway and your car pays the tolls.  You tell Alexa, Google Home, or Siri to transfer money to your friend or between your accounts.  You are offered embedded loans through a retailer via embedded services in their websites at the point of checkout.

Following the pandemic led wide-scale digitization across various commerce, banks followed, leading to increased usage of digital payment platforms.  Banks looked to sell their products and services via these digital platforms increasing their customer base, decreasing the use of cash, and bringing in new tech savvy consumers.

Concurrency is seeing the following trends and assisting financial institutions accelerate their digital transformation initiatives:

  • API’s – Consumers expect 24/7, real-time support across all banking channels.  APIs can allow data to anyone who has the consumer’s permission to access it. 
  • RPA and AI - RPA can help automate repetitive manual financial processes reducing manual risk.  This also allows back-office employees to focus on more critical tasks.
  • Cloud – Cloud was traditionally viewed to reduce costs. but, increasingly, drivers for the cloud are revenue and profitability.  Cloud computing also helps in removing data silos, eliminating the need for physical servers, physical systems, and the people to manage them.
  • Mobility – Consumers expect omni channel capability, and continued investment in mobile beyond the routine capabilities will be necessary to drive future growth.

The future of digital banking allows consumers to manage their financials with digital tools.  These digital tools will require continuous innovation based on evolving consumer expectations.  Concurrency is here to help. To learn more, contact us at sales@concurrency.com or visit our Contact Us form on our website.