5 digital banking trends across the globe; No 5 will surprise you

By Edil Corneille

The COVID-19 pandemic has fastened the adoption of digital transformation strategies among financial institutions. Banks have rolled out technologies facilitating digital methods for individuals to conduct their finances in a way that is convenient, safe, and simple. Even post the pandemic, individuals are expected to continue to increase the use of digital means for making payments, conducting financial transactions, and other banking requirements with everything now becoming paperless and electronic.

Digital banking has become a necessity now more than ever as customers are wary of visiting bank branches due to fear of the COVID-19 outbreak. Social distancing norms has forced the non-tech-savvy customers to adopt technology at a faster rate. Here are 5 digital banking trends that are enabling financial institutions to provide services to their customers which are hassle-free.

1. Social Media

This is a popular medium amongst customers and the acceptance rate for banking on social media is high as individuals are more familiar with these types of channels. In end June, Kuwait City-based Burgan Bank launched its new WhatsApp business service on 1804080 in collaboration with Infobip to address general customer queries. Payments are simplified, marketing campaigns can be conducted and the cross-selling of products becomes easy.

2. Artificial Intelligence

Banks are increasingly rolling out services related to robo advisory, financial advice, fraud management, voice banking, chatbots, etc., to name a few. Deutsche Bank announced this month, the onboarding of the Blue Bot ‘Yi’ within its corporate bank division in China. Yi is termed as a digital employee and it is responsible for handling financial reports including real-time customized transaction reports and cash pooling reports, and for processing direct client inquiries.

3. Digital Wallets

Banks are bringing digital wallets for their customers to enable a safe, secure, and private way to make payments. This is expected to help customers avoid handing their payment cards to someone else, touching physical buttons, or exchanging cash, in wake of the pandemic situation. Australia’s Heritage Bank, a customer-owned bank, announced the bringing of Apple Pay for its customers, earlier this month.

4. Open Banking

This is not a relatively new concept but is however gaining traction in recent months. The Competition and Consumer (Consumer Data Right) Rules went live on July 1, in Australia which has been welcomed by the big 4 banks of the country – ANZ, Westpac, Commonwealth Bank and NAB where they will be sharing their customers’ data with third parties when requested by the customer.

5. Cloud Technology

Cloud technology in digital banking facilitates customer interactions, information, and security amongst others. In April, neobank Xinja announced its partnerships with Aviatrix for its multi-cloud network architecture and with Box for its cloud content management tool. Cloud banking enables financial institutions to store data and applications. Firms can access advanced software applications through the cloud.