The future of retail, mobile, online and digital-only banking technology

According to a recent study, the number of users of digital banking technology users globally is expected to cross 3.6 billion by 2024. This gigantic number is hardly surprising, considering the positive effects of technology seen today in every sector. And banking is no exception. 

The pandemic acted as the perfect catalyst to propel the digitalisation of the banking industry. As a result, today’s customers (especially millennials and Gen Z) look for a completely digitalised customer experience to virtually conduct their banking activities. 

Here is an outlook on the future of digital banking technology in 2022.

Retail banking

Retail banking specifically refers to the core banking services offered to customers – opening of savings or current bank accounts, providing debit/credit cards, offering different loans and loan products, etc. With digital transformation sinking its roots deep into the banking industry, the future of retail banking will be largely characterised by innovations and the delivery of products in an all-digital format. 

Banks are increasingly adopting the Banking-as-a-Service (BaaS) model to stay competitive. The retail banking market will benefit significantly from BaaS digital platforms as this will help financial institutions to increase scale, diversify revenue streams by creating new products and services, and deliver a better customer experience.

Mobile banking

Mobile banking has become an integral part of routine transactions, especially for Gen Z, who expect banks to provide a robust financial services infrastructure at their fingertips. The mobile banking industry is expected to reach $1824.7 million by 2026 globally, which is enough evidence of its popularity.

People want a branchless banking experience to make deposits, do account transfers, and monitor their earnings and savings. One of the substantial effects of technological growth in the banking sector is the penetration of mobile banking, which has led to an exponential increase in the number of bank transactions. More and more people are willing to do online transactions, thanks to having the right technology on their smartphones. 

IDFC FIRST Bank’s mobile app provides a complete solution for all your banking needs and much more. Apart from covering your routine activities, you can use IDFC FIRST Bank’s mobile app to transfer funds, pay bills and dues, manage spends, invest in mutual fund SIPs, and download bank statements – all with just a click.

However, data security is still a major concern for many. With the adoption of security features such as big data, biometrics, blockchain, and more, mobile banking is on the road to achieving a seamless customer experience.

Online banking

Mobile banking forms a huge chunk of online banking, and it has become extremely popular with all segments. People want convenience, speed, and accuracy in their banking transactions, all of which are fulfilled with mobile banking.

That said, manual and outdated processes that involved various online banking avenues have swiftly replaced tiresome paperwork.

One of the positive effects of technology in the online banking space is how banking processes are performed. Today, one can upload documents, conduct KYC checks, and perform other tasks without any laborious in-person intervention. 

Digital-only banking

Digital-only banks or neo-banks are the latest to arrive in the banking ecosystem and have tremendously fast-tracked the adoption of digital behaviour among customers. These are different from traditional banks as they operate entirely online and completely do away with the need to visit a physical bank branch.

Some of the typical characteristics of a digital-only bank that makes it the go-to choice of millennials today are its ability to provide an end-to-end digital customer journey and access to real-time data and key analytics. The digital era demands quick contactless transactions, payment via personalised QR codes, convenient mobile wallets, and more. All these are a must for banks to provide a satisfactory customer experience.

Conclusion

Technological disruption in the banking space is transforming how people perform their banking activities. Banks and customers must stay abreast of the latest developments in the space if they wish to take advantage of the same.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.