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Top 10 areas for digital disruption in banking: exciting opportunities ahead!

10 Top Areas for Digital Disruption in Banking | EasySend blog
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9 minutes

There is no doubt that digital disruption is shaking up the banking sector. Consumer behavior is changing, and banks are under pressure to keep up. In this blog post, we will explore top 10 areas for digital disruption in banking. These include the digital customer experience, mobile payments, and no-code development. Banks that want to stay ahead of the curve need to focus on these areas and embrace digital transformation!

1. Customer experience is an essential component of the digital customer journey

Digital experience is nothing new, but its significance in the banking industry is only starting to emerge. For example, digital customer experience no longer refers to simply having an app or a web portal - that's yesterday's news! Today's consumers expect a seamless and personalized customer journey across all channels, no matter how they choose to interact with their bank (e.g., mobile app or website).

To keep up with the competition, banks need to expand their digital banking channels. This includes offering a wide range of options for customers who want to bank online or via mobile devices. Banks that neglect this area will quickly find themselves losing market share.

Banks no longer have a choice but to embrace this new way of doing business and find ways to improve upon their current processes so that customers receive better service, more personalized attention from staff, and a more streamlined overall experience.

2. Digital journeys are the new normal

Continuation of the previous trend, the digital journey is another important area of focus when it comes to digital disruption in banking. This refers to how customers interact with their bank and move through its various channels in a continuous, seamless way.

A successful digital journey must be intuitive, easy to use, and fast. Customers should not have to jump through hoops or spend a lot of time trying to find what they need. They should accomplish their goals quickly and easily, no matter which channel they are using.

To create a successful digital journey, banks need to map out the customer's entire experience and identify potential pain points. Then, they need to work on fixing these issues so that customers have a positive experience every time they use their bank's services.

The digital journey is one of the most important areas for banks to focus on when it comes to disruption in banking today. Customers no longer want to wait around or deal with frustrating processes that don't make sense - they want things done right now!

3. Growing demand for payments

Another key area of digital disruption in banking is mobile payments. As the use of mobile devices continue to increase, banks need to find ways to capitalize on this trend by offering great mobile payment options.

Banks need to find new ways of making mobile payments more convenient for their customers so that they no longer have any reason to go to a physical bank branch. This means offering mobile payments that are not only secure but also easy to use.

In addition, banks should explore new ways of using mobile devices for payments. For example, they could allow customers to make in-app purchases or even pay bills with their smartphones.

The goal is to make mobile payments so convenient that customers will no longer want to use any other payment method.

4. Accelerated digital transformation with no-code development

Digital native banks have an advantage over traditional ones because they weren't built with legacy systems or processes in mind. But traditional institutions can catch up. 

In order to keep up with the ever-changing digital landscape, banks need to embrace no-code development. This approach allows businesses to create custom applications without writing any code. Banks can quickly and easily create custom solutions that meet their specific needs with no-code development.

No-code platforms can help banks build personalized, responsive, and frictionless digital customer experiences and can be integrated with existing tools and processes. 

No-code platforms are helping to level the playing field between traditional banks and FinTechs. The benefit of this is that no matter what size your bank may be, it will no longer rely exclusively on an IT department for developing customer-facing applications. This also makes it easier for banks to stay ahead of the curve and adapt quickly as new trends emerge, which is becoming increasingly important in today's world where no one knows what tomorrow will bring.

Citizen developers are able to pitch in and deliver digital journeys and accelerate digital transformation. This democratization process makes for a more competitive market where smaller companies can compete with larger ones.

Digital disruption in banking | EasySend blog

5. Artificial intelligence applications

Artificial intelligence (AI) is another hot topic for digital disruption in banking. Banks are starting to use AI to improve areas such as customer service and fraud detection. As AI technology evolves, banks will undoubtedly find even more ways to incorporate it into their operations.

There are multiple areas of application of AI technology in banking:

Customer service

Banks can use AI to provide better customer service by anticipating customer needs and providing recommendations. For example, a bank could use AI to recommend products or services based on a customer's past transactions.

Fraud detection

Banks can use AI for fraud detection by identifying fraudulent activities and patterns. This helps to protect customers and the bank from fraud.

Payment processing

Banks can use AI to process payments and transactions faster than ever before. This allows them to provide better service with no delays in payment processing times or errors due to human error because no one is involved!

Virtual customer assistants (VCAs)

VCAs offer a number of benefits, including improved customer service and increased efficiency. Banks that neglect this area will quickly find themselves losing market share.

6. Moving to the cloud while balancing the risks

Banks were hesitant to move to the cloud because of the security risks involved. However, cloud providers have taken steps to ensure that their solutions are secure. In addition, banks can take additional measures such as implementing two-factor authentication and using encryption to protect their data.

Banks only recently started moving to the cloud, but this trend is quickly gaining steam as banks are looking to completely transform how they have done business over the last few decades as they face fierce competition from FinTechs that are not weighed down by legacy systems. Traditional banks are looking to replicate this, and as agility and speed are key, they can only compete by moving to the cloud.

Cloud-based solutions offer a number of advantages for banks, including:

  • Cost savings: Banks can save money by moving to the cloud. This is because they no longer need to invest in hardware or software and can instead use the cloud provider's infrastructure.
  • Speed and agility: Banks can quickly adopt new technologies and processes using the cloud rather than building them from scratch.
  • Scalability: Banks can quickly scale up or down as their needs change, thanks to the flexibility offered in today's cloud solutions. This allows them to focus on their core business and not worry about how IT will respond when demand increases for services like banking.

While there are some risks associated with moving to the cloud, the benefits far outweigh them, and banks should not hesitate in making this transition.

Moving to the cloud is not just about cost savings and efficiency improvements. It also allows banks to quickly adopt new technologies and processes using the flexibility provided by today's cloud solutions, which means no more waiting around for IT departments or developers who are bogged down with legacy systems.

8. The Internet of Things and data protection

The Internet of Things (IoT) is another trend that banks need to pay attention to. With the IoT, devices are connected and able to communicate with each other. This opens up a world of possibilities for banks, which can use the IoT to improve their operations and provide better customer service.

For example, banks can use sensors to monitor and track the conditions in their real-estate assets in real-time. This allows them to improve efficiency by knowing the current status at all times.

The IoT also enables banks to provide better customer service by collecting data from devices that customers use every day, empowring them to understand how their clients live and what they need to tailor products accordingly.

However, this data must be protected. Banks need to ensure that no one has access to the data except for those who have permission, which means they'll need strong encryption methods and other security measures in place.

Data privacy and protection are quickly becoming one of the most important issues in our society. Banks need to ensure that they are doing everything possible to protect their customers.

9. Digital data collection and data analytics

There is a saying, "garbage in, garbage out," which means that your insights are only as good as the quality of your raw data. To ensure that the data is accurate, it needs to be validated at the point of entry, meaning that no data should be entered manually without being validated by an automated process. This can be done through machine learning algorithms and other technologies.

Once the data is validated, banks will need high-quality storage solutions for all their information, so it's accessible when needed. They should also have a plan in place to ensure that no one else has access except those who have permission from management or the board of directors.

The data needs to be protected from cyber attacks and theft, which means using strong encryption methods as well as other security measures.

10. Robotic process automation

Another area where banks are seeing digital disruption is robotic process automation (RPA). RPA allows businesses to automate tasks that were once done manually. This can save banks time and money and improve the accuracy of their operations.

RPA is not a replacement for human workers; in fact, it's meant to free up employees so they can focus on more important tasks. It also improves productivity by removing repetitive tasks from the equation, allowing people to get their work done faster and with fewer errors.

However, RPA is no silver bullet either: there are some tasks that can't be automated, and banks will still need human employees to do those tasks. It's important for banks to find the right balance between automation and human workers in order to get the most out of both technologies.

Become a digital disruptor

Digital transformation is a must for any organization that wants to keep up with the competition. The banking sector is no exception! It's no coincidence that many of these areas are also top digital disruption trends across other industries, such as retail and healthcare. As consumers continue demanding more from their financial institutions, banks must embrace digital transformation in order to stay competitive.

These are just a few of the key areas that banks need to focus on when it comes to digital disruption. By embracing these trends, banks can stay ahead of the competition and continue to thrive in today's rapidly changing digital landscape. Stay tuned for future posts where we'll explore each of these areas in more depth.

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Vera Smirnoff
Vera Smirnoff

Vera Smirnoff is the demand generation manager at EasySend. She covers digital transformation in insurance and banking and the latest trends in InsurTech and digital customer experience.