All types of businesses need some form of business-banking services and it is very important to choose a bank or a banking institution that offers a full range of services that can support your banking needs as your business grows.
Searching for and eventually choosing the right bank for your business is quite similar to selecting the right employee to hire. The selection must be based on factors that ensure that you find the right attributes and abilities that help you with your financial requirements; and of course, why not, reach your business goals.
Especially in today’s digital era, selecting a bank that is digitally savvy and forward looking in accordance with new digital trends and transformations could be vital and can help you and your business be more efficient and effective in managing transactions.
Digital banking has changed the landscape of banking very rapidly over the past few years. Digital technologies which were originally restricted to banking channels now also include the whole banking spectrum. Ranging from back-office operations to client-facing channels, digital banking is the way forward for various participants in the financial services sector.
The banking sector went through different stages of digital transformation. Initially there was a conversion to electronic operations which led to higher efficiency and automation, thereby making banking more transactional and technology-oriented. Banks gradually started to focus more on improving the customer experience, for instance, through the introduction of automated teller machines (ATMs), call centres and phone banking.
The next step was largely triggered by SMAC technologies (social, mobile, analytics and cloud) which enabled financial institutions to shift to a more personalised approach. The present wave of digital transformation is being driven by newer technologies such as blockchain, Artificial Intelligence and API banking, all of which have the potential to change the landscape of banking as we know it. Such technologies continued to provide more personalisation and improved customer experience, while at the same time transforming banking operations. This has also led to a substantial reduction in the number of bank branches as clients shift to online services.
As banking products become more standardised, the major drivers of client loyalty changed, whereby clients are now more in search of ‘customer service’ as a crucial element when selecting their preferred service provider.
In order to remain attractive, banks need to focus on the next stage of customer experience to outshine their competition. Nowadays banks are competing with fintech start-ups as they deliver their services across multiple devices used by their clients.
Nowadays banks are competing with fintech start-ups as they deliver their services across multiple devices used by their clients
Banks gradually started to use biometrics such as voice recognition and fingerprints for easier access to banking services through mobile phones. Banks have started to use predictive analytics, artificial intelligence and machine learning so as to give a more personalised touch to their service offering. Banks need to continuously invest in the latest technologies as customers are now using multiple devices simultaneously and are always in search for more convenience.
Another trend which is worthy of mention is the emergence of open banking. This enables financial institutions to share anonymised client data with third parties through a set of Application Programming Interfaces (APIs). This has led to increased competition in the market, particularly by driving innovation in the quality of services provided.
The push towards more digitalisation led to financial institutions having more access to data on their clients. This, coupled with the fact that clients now have access to banking services from multiple devices, has made the whole network more susceptible to security vulnerabilities. In addition to this, regulations such as the General Data Protection Regulation (GDPR) resulted in data security being one of the topmost priorities across all financial institutions.
An area which is facing noticeable disruption in traditional banks is the processing of payments and forex services, particularly with the introduction of digital money wallets and alternative payment channels (PSPs and EMIs). Clients are opting for services provided by such licensed financial institutions as…