Do Virtual Banks Catalyze Banking Innovation?

Banking CIO Outlook | Thursday, March 12, 2020

New virtual banks could revolutionize banking experience and shape the industry’s growth by competing for niche segments and serving the technically savvy customers.

FREMONT, CA: The banking industry looks set for a jolt of innovation as virtual banks gain entry to the very competitive industry. The entry of virtual banks is expected to bring advanced financial services to niche markets, changing how customers use financial services and helping shape the future of banking. It is sure that virtual banks are likely to act as a catalyst for innovation and change.

Established ways of banking are now decades old. With the advent of the internet and technology, such leagcy ways of banking became less relevant, making way for newer approaches that do not compromise the security of funds or customer data. These advancements have enabled the emergence of virtual banks that use the internet as their primary tool. These virtual banks deliver several benefits to customers over conventional banks and their bricks-and-mortar approach. Because of the efficient ways in which virtual banks operate, they do not need to charge the same as brick-and-mortar banks when customers make transactions.

Top 10 Customer Experience Consulting/Services Companies - 2019Virtual banking platforms have been developed with businesses in mind and simplifying the payment process to make it easy and secure for them to operate in global markets. For instance, payment cards issued by virtual banks can be used without a charge, with flat ATM fees, and the ability to withdraw money in any currency. This convenience extends to improved customer service. Virtual banks also accept payment directly from users’ clients, implying that the user can instantly send money to any country in the world, as virtual bank accounts are global.    

Virtual banks can tackle challenges faced by the customers in a way that suits the millennial world. Customer support is available 24/7, and balanced and transactions are designed to be made online. This makes banking more efficient and faster, allowing customers to have real control of their finances. Virtual banks are also able to save costs by not having to pay rent and salaries for the staff at every branch. Along with this, customers would be spared of the need to wait to be served.

See Also: Most Promising Customer Services Startups

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