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Top innovative trends that will define digital banking in 2019

(Image credit: Image Credit: MK photograp55 / Shutterstock)

Things are not like we saw in past especially about the banking sector. A complete paradigm shift has occurred in the global banking sector that is becoming both more strategically focused and technologically advanced with the passage of time. More secure and safe in its response to consumer expectations while trying to defend market share against an increasing range of competitors. A great deal of emphasis is being placed on the digital transformation of core business processes and also it is helpful in reassessing organisational structures and internal systems to be better prepared for the future of banking systems. This transformation exemplifies the increasing craving to become a digital bank instead of traditional and old conventional portals.

We can see that different things are quite interesting and helpful in completing routine based tasks. The importance of innovation and developing new solutions that take advantage of data, advanced analytics, digital technologies, and unique money transfer options have never been more important. We can see that most of the organisations and private firms are more focused now to enhance the innovations in their products while targeting, expanding services, re-configuring delivery channels, delivering practical advice, assimilating payments and applying blockchain technology.

1. Digital transformation increase in 2019:

Such kind of services in the digital banking setup is continuously growing and developing since last year and these efforts will only increase in 2019 if global financial and tech giants revolutionise the financial services systems. Such kind of innovations is not only bound towards specific departments but working in all major sectors. Like we can take the example of these mega-trends in the banking sector that are also doing different experiments with new mobile applications and voice-enabled gadgets to enhance both delivery and background personalisation. In this framework, everyone knows that ultimately the consumer will be front and centre for all kinds of products. As modern technologies continue to evolve we can see that the banking sector also continues to accelerate its investments in innovation and digital enhancements.

2. Serving CRM to digital technologies:

In 2019, many banking organisations are trying to go beyond by taking the option of individualised communication and experiences for the segment of one. With the latest offers, so far this is the ultimate level of innovative personalisation that is allowed with complete informative data, advanced analytics, and digital technologies.

There is a need to understand the functions of this system, by taking the basic framework. This level of personalisation involves clustering a customer base with advanced criteria. Different kinds of customers are organised into different strata’s and assigned with unique information. To handle all the categories, different tools like human-centric, design-thinking pillars and CRM tools help banks and other unions to deal with the solutions. A service provider in the market is not only available to facilitate you but also to make some profit. Following the same theory, one of the forgotten keys to success with segment-of-one personalisation is to estimate the potential of one segment customers. Not only had to judge the potential customers but also their consensus to pay some extra charges for these added services.

The key to success or we can say that the setup of new Innovations and their utility is not only to serve a segment of one and for sure it is not limited to individual consumers.

Banks and credit unions are also trying to be focused their efforts on the small and medium enterprise (SME) segments with complete security and privacy in banking. Well according to latest updates, most of the financial organisational especially banking sector are taking a ‘GAFA’ (Google/Amazon/ Facebook/Apple) approach, leveraging insights and data derived from services and individual organisations to boost their core business.

3. Expansion of open banking

Now we have different systems with global touch and access. This thing is equally important and dangerous for using some confidential data. In most of the developed regions, regulatory bodies are trying to bind banking organisations to enable customers to share their data securely with third parties to power new financial services and increase competition in the banking industry. There are many routes to use data at a sharing level in a secure way. For example, one can take some help by making an account through an online setup. In this way payment, data would be available through secure application programming interfaces (APIs). This application will enable consumers to have greater freedom and control in how they interact with their financial service providers.

Open banking along with different other private organisations such as Apple pay to accelerate innovation and collaboration, leading to expanded banking services. This is not only fixed to financial services to make a consumer’s lifestyle better but also a lot more than this. What is exciting about open banking and online payment options is making consumer consent to achieve and get their interest. Alternatively, those firms that provide the best consumer value proposition will be the relationship winners.

4. AI-driven predictive banking with latest tools:

We can bet for this thing that no one could even imagine about the innovations that are we are enjoying today. With each passing day, we are getting more and more. With rising year trends in 2019 includes one of the most exciting innovation trends is the current work and achievement of predictive banking. For the first time, the banking industry can consolidate all internal and external data, building predictive profiles of customers and members through smartphone apps. With consumer data that is rich and powerful for marketing point of view, this is now accessible and financially viable to deploy. Now we can see that financial institutions including banking sector of all sizes can not only know their customers but also provide advice for the future.

By moving from one perspective of customer communication to services deployed by marketing advisors, and AI-driven chatbots, financial institutions including banks are providing consumers with value and safety about the systems they are using. The real innovation is when the banking sector integrates this capability with the expanded services of connected devices in the cyberspace.

Christino Albert, Project Manager, Forex Exchange
Image Credit: MK photograp55 / Shutterstock