Online Banking Trends to Watch for Digital Banking and Financial Technology

Over the past decade banking has undergone a revolution; the result of relentless digital disruption and an increasing expectation for convenience. The advent of digital banking and fintech has transformed not only the way consumers engage with banks but also the dynamics of an entire industry. Whether it’s mobile-first responses, blockchain and cloud banking, or AI-based services; the future of banking is inexorably linked with online banking technology today.

In this piece, I’m taking a closer look at the digital banking technology trends that are making an impact on consumers, and what the future holds for the industry.

The Evolution of Digital Banking

Banking of old used to be all about queues, paper-heavy transactions and accessibility constraints. But thanks to internet banking, however, banks have moved towards faster, consumer-focused and ultra secure banking channels. Digital banking is no longer considered a “nice-to-have” option; rather it is the cornerstone of how banks interact with customers.

Mobile phones, internet penetration and fintech development have put banking at the swipe of a screen. Whether it’s for the most basic fund transfers to a future based on artificial intelligence-enriched financial planning, consumers now demand that their banks offer the same frictionless service they’ve grown accustomed to in other aspects of their digital lives.

Crucial Facet of FinTech in Banking

Consumer Demand for Convenience
Customers today demand access to banking services 24-7. Whether it’s paying bills, transferring money or applying for loans, they want to do this all online without having to step foot in a branch.

Advancements in Technology
Banks use cloud computing, AI, blockchain and big data analytics “to provide smarter, more efficient and tailored service” after these technologies developed.

Fintech Partnerships
Rather than compete, most banks are now partnering with fintechs to co-create offerings that meet the needs of a digital-first customer.

Regulatory Push
Governments and central banks around the world are increasingly embracing digitization in financial services as a means to encourage financial inclusion and transparency.

Top Digital Banking Technology Trends

Artificial Intelligence and Machine Learning
Artificially-intelligent chatbots, robo-advisors and predictive analytics are transforming customer service. Machine learning algorithms assist banks in spotting fraud, evaluating risk and extending individualized financial advice to name a few.

Blockchain and Digital Assets
Blockchain is transforming payment networks and could make transactions fast, transparent and secure. With central banks testing digital currencies, blockchain would seem to be indispensable as a driver for banking infrastructure in the future.

Biometric Authentication
Fingerprints, facial recognition and voice authentication are starting to replace even these passwords. The technology increases security while at the same time creating customer frictionless experience.

Cloud Banking
Cloud platforms enable banks to scale rapidly, save on IT infrastructure and innovate more quickly. An increasing number of banks are also shifting their core banking systems to the cloud, for capacity and resiliency.

Open Banking and APIs
Open banking allows customers to share financial information across various apps and sites in a secure way, leading to tailored services and improved money management services.

Embedded Finance
Non-banking platforms like e-commerce or ride-hailing apps are integrating finance services directly into their offerings. This trend is increasingly blurring the distinction between banks and other industries.

Hyper-Personalization
With the help of big data and AI, banks can provide services based on people’s unique preferences. These features are all in the process of becoming standard: Personalized offers, investment strategies, insights into spending.