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The push for digital banking services is real and more evident than ever. Both clients and fintech companies are pushing for the transformation to digital banking, brewing a pot of emerging trends and developments
Fremont, CA: Increased accessibility of smartphones and global internet coverage has transformed the banking sector as we know it. Digital banking has emerged as a lucrative development opportunity for fintech businesses. Studies have shown that 24 percent of U.S. citizens already rely on digital-only banking, while only 34 percent of people under the age of 35 carry cash with them. Forty percent of retail banks invest heavily in IT development and digital infrastructure upgrades, while 61 percent of people do thorough research on a bank and its digital features before settling to use their services altogether. The push for digital banking services is real and more evident than ever. Both clients and fintech companies are pushing for the transformation to digital banking, brewing a pot of emerging trends and developments. Here are a few upcoming trends to look out for in the digital banking transformation segment.
Blockchain Data Management
The technology that started as a means to track cryptocurrency exchange has now found its place in a plethora of industries and cloud platforms. Blockchain technology’s unique take on data tracking and information management makes it more than viable for increased digital banking safety of clients across the globe. Both traditional banks and upcoming fintech companies need to prepare for the full-scale adoption of this technology. The implementation of blockchain will mark a safer, more transparent transaction market, allowing both B2C and B2B stakeholders to utilize banking platforms to their fullest.
Mobile Banking Only
Convenience and accessibility have triggered a mobile-first approach among consumers. This provides a development opportunity for fintech businesses with aspirations to create their own mobile banking platforms which will cater to a plethora of people with their day-to-day needs. Traditional banks are also looking to increase their presence in the mobile banking sphere due to necessity and requirements of their clients. Regardless of the size of the business, mobile-only banking features should be on the development radar of the company in these changing times.
The more accessible and versatile nature of digital banking also makes it vulnerable to cyber-attacks and social engineering hacks. Implementing AI algorithms which will notify the user of any access attempts, changes or transactions being made with their account can amend that. AI technology can potentially learn using patterns that are commonly associated with any given user, registering them as positive interactions while being suspicious of other events. As digital banking takes shape, AI will emerge as robust security for user data.