The power of digital transformation in banking

“Digital transformation” is no longer a novel concept. Today, every industry is rapidly going digital and adopting technology, integrating it into various aspects of their operations. Embracing this constantly evolving digital landscape has become crucial for industries seeking to flourish. 

The global Banking industry witnessed a significant and necessary transformation through "Going Digital." The advent of Digital Banking brought about considerable benefits for all stakeholders involved, revolutionizing the entire banking process. To grasp its significance, it is essential to first understand the fundamentals of digital banking. 

What is digital banking? 

Digital banking is the way forward. It brings new possibilities and opportunities, revolutionizing the banking sector. In simple terms, digital banking means accessing banking services through the internet and mobile devices. It combines online and mobile banking, so you can do everything without having to go to a physical bank branch. You can open an account, make payments, transfer money, and even apply for loans online or through your phone. Banking made it easy and convenient for everyone. 

While the transition to digital banking is a gradual process with ongoing evolution, it is expected that the global digital banking market will surpass $1,700 billion benchmark by 2026. This projection represents substantial growth from $804 billion in 2018, within the forecast period of 2018-2026. 

This notable change benefits both customers and the banking industry, offering advantages such as: 

• Convenient and accessible banking   

Banking is now a tap away, making it convenient to access services without the need to visit physical branches. Moreover, it fosters financial inclusion by enabling people in rural areas, where setting up bank branches is challenging, to access banking services. 

• Affordable banking services  

With fewer expenses from operating physical branches, banks can now provide customers with lower fees and higher interest rates. Additionally, customers find it simpler to compare different rates and fees, which helps them select the bank that best fits their needs.  

• Operational efficiencies 

Moving towards a branchless operation means cutting down on labor costs, location upkeep, rent expenses, and other costs associated with running physical branches. 

• Improvement in top line  

The rise of online banking has led to a substantial increase in transactional revenue and a significant growth in the number of users. 

• Technological innovation  

In today's fast-changing landscape, it is crucial for banks to prioritize upgrading their systems and technology to remain relevant and provide an exclusive experience for their customers. 

• Transparency  

The online nature of digital banking enables easy monitoring by government and authorities. Banks must comply with technology-related policies, ensuring a transparent and fair system. 

• Hyper-personalization 

Advancements in AI and Big data empower banks to predict, engage, and provide personalized solutions, enriching the user experience for customers. 

• Endless opportunities  

Transformational technologies like Artificial Intelligence, Internet of Things, APIs, and Cloud open numerous dimensions for the banking industry to capitalize on and explore new possibilities. 

The undeniable truth is that the digitalization of banks and the rapid advancement of technology are unstoppable forces. Embracing the digital revolution in banking will not only bring convenience and efficiency but also unlock new opportunities and possibilities for growth and prosperity.