Digital Banking Market Size With The Expansion Of Uses In The Forthcoming Period By 2022
The banking sector forms the cornerstone of any economy, and digitalization has indeed disrupted the banking sector. Digital banking is referred to as the delivery of banking or financial services and products via electronic medium such as the internet, the telephone, mobile phones, etc. Generally speaking, digital banking is the move to online banking where services are delivered over the internet. A true digital banking platform is characterized by a digital front end, automated E2E processes, innovative digital products, personalization, and new business models & enhanced ecosystem. High level of process automation and web-based services allow access to financial data through desktop, mobile, and ATM services. Wallets, mobile baking, internet banking, digital cash, ATM, customer service, SMS services, and IVR calling are some of the common digital banking services that we use in daily life. Online banking facilitates checking balance through the internet, bill payment, transfer of funds, set up recurring bill payments or transfers, make credit card payments, order cheques, monitor CIBC investments, and others.
The digital revolution of the 21st century is changing the customer-bank relationship. The millennials need to be connected to their financial data 24/7, which has given rise to the era of digital banking. This new paradigm of banking is increasingly being embraced by financial entities who want to differentiate themselves in the competition by providing a digital experience. Improving user experience has become a key area of concern for banks who are incorporating digital tools in their ecosystem to address evolving purchasing behavior of consumers. Plus, the need to optimize distribution in an increasingly multi-channel environment is key to digitalization. From the bank’s point of view, digital banking provides the advantages of increased mobility, enhanced customer loyalty and account retention, higher transaction volume, and targeted and customizable marketing for banking services.
Current Trends in the Digital Banking Space
Numerous requirements in terms of customer experience, which cannot be fulfilled by banks alone have created a favorable groundwork for the entry of FinTechs in the digital baking marketplace. These non-traditional competitors are entering the market on the back of the gaps created by banks. The light structure of FinTechs, young brand image, and cutting-edge services focus on niche markets where banks do not cater. Digicash, Paypal, and Kickstarter are among the popular FinTechs.
The digital banking sector has witnessed the entry of non-traditional new competitors, retail companies. Retail companies possess deep technological know-how and abundance of data on consumer behavior, which provides them unprecedented leverage. Majority of minerals would be keen on availing financial services from companies such as Amazon, Apple, or Google due to their highly positive image, which has helped these companies revolutionize the digital banking experience.
New entrants are likely to play a crucial role in the future of the digital banking landscape. New business models in digital banking have made it easier for out of banking industry players to enter the arena, which was highly fenced until now.
White label banking is a new business model in digital banking, which allows telecom/IPS to render financial services by partnering with banks to utilize bank’s baking licenses, existing core infrastructure. This model eliminates all major organizational hassles and combines the expertise of both banking and telecom for better business outcomes. Additionally, it allows access to financial services without having to look after compliance and regulatory requirements. Furthermore, selling value-added services to the existing customer base is much easier.
Barriers to Adoption
For many consumers, digital banking seems too complicated, especially computer-illiterate people. Moreover, for baby boomers, banking through a branch seems easier than using applications. However, banks are increasingly realizing the existence of this consumer group and are taking concrete steps to conquer the fear of consumers.
More information@
Digital Banking Market Research Report- Forecast to 2022 | MRFR
Global Digital Banking Market is expected to grow at CAGR of around 8% between years 2016 to 2022,…
Read on marketresearchfuture.com
About Market Research Future:
At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Reports (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research and Consulting Services.
Contact:
Market Research Future
+1 646 845 9312
Email: [email protected]