Innovations in digital banking and payments

Innovations and changing client needs are changing the way organizations work today,
particularly for banks. For decades, banks have depended on operational principles. Banking
is now not restricted to only traditional competitions but also to the non-traditional
competitions like neo digital banks, the big techs for leveraging and taking advantage of the
technology and to push the boundaries of Technology banking.

Future proofing digital banking

A forward-thinking bank should remain at the forefront of innovation, adopting
technologies that meet customers’ demands for financial health, wealth, trust, and security.
Such advancements usher in a completely new era of digital banking, redefining how
individuals see their finances.
Advanced self-service capabilities: Consumers today do not have the patience to stand in a
long queue at a physical branch and fill out mountains of paperwork. Especially when there
are easy self-service digital banking solutions available that offer a low-effort, quick, and
comfortable user experience via the consumer medium of choice. Consumers of all
generations are more confidence in utilizing digital banking channels as a result of the
Covid-19 incident, and many will not return to the branch. People may undertake
sophisticated digital self-service tasks such as self-registration and remote account opening
with the aid of the most recent banking technology.
Machine learning and artificial intelligence: Key Fintech such as Branch.co, My Bucks are
utilizing AI and machine learning to provide loans to individuals with little to no credit
history. Branch.co checks individual’s credit based on smartphone data to verify eligibility
and offers access to those who would otherwise be denied due to a lack of credit history.
They utilize machine learning to analyses massive amounts of data and provide clients with
lending alternatives.
Financial technologies such as AI technology, analytics, voice banking, internet of things and
personal financial management software are advancing toward a same ultimate objective
that is invisible banking. Some of the fintech examples which has greater effect on banking
are virtual assistants, ally assist, aspiration, chime etc.
Payment innovations in the digital age
Approximately 46% of today's customers do all of their personal banking through digital
channels. Mobile payments are made by 90% of smartphone users. When it comes to
making a contract with any product or service firm, today's customers expect a quick and
smooth payment procedure. This is when current technology players with payment
transaction capabilities enter the game. Customer intelligence plays a critical role in
business performance and corporate success. Financial services companies expect to
provide real-time client engagements by delivering AI insights-driven lists of product
suggestions as well as the opportunity to pay via the app's API connection. Banking
organizations employ smart chatbots to begin contact, guide customers through a website
with a single click, and answer common inquiries.
The Coronavirus outbreak has accelerated the move toward a cashless society. Digital
payments are increasingly seen as a commodity.  Fintech are today more self-sufficient and
better equipped to satisfy the need for cashless transactions. As more customers resort to
digital channels for acquiring necessities, the adoption of e-commerce and digital
transactions has also increased. Consumers who formerly preferred in-store experiences or
cash payments are increasingly becoming more comfortable with digital wallets, mobile
payments, and open banking payments. As per a Pay Safe report, 54% of UK consumers
have utilized new means of payment after COVID-19's outbreak.