Traditional banking: Sunset on the horizon

The traditional banking system today is experiencing a major change, as the sector is undergoing a comprehensive makeover. The catalyst? Digitalization. Digitalization has ushered in the era of digital banking. Let's explore how this transformation is unfolding.

Traditional Banking: A sector in decline

As decades of dominance by traditional banks is being challenged. The introduction of digital technologies has introduced newer and more efficient pathways for progressive financial institutions. Besides the inconvenience of physically visiting a bank, several other factors have led to the waning of the traditional banking model which are as follows:

High transactional costs

The escalating cost of transactions is a significant drawback of traditional banking. All the transactions are accompanied by a fee, that includes account charges, card charges, transaction charges, followed by borrowing costs. These multiple charges have an adverse effect on today's digital-savvy customers and their habits.

Limited availability

There is a pre-determined timetable that has to be followed by conventional banks no matter what. This limits the time in which they can respond to and resolve customer queries. Let's say if any concerns arise outside of banking hours, even urgent ones, customers must wait until the next business day for resolution.

Minimum balance policies

Generally, traditional banks have minimum balance requirements for opening and maintaining accounts. In some cases, a few banks even mandate higher amounts to be always kept in the accounts, hindering accessibility for some customers.

Insecure mechanisms

Conventional IT structures of your bank have become exposed to endless cyber-attacks due to technological advancements. Such security breaches can often compromise sensitive customer data and eventually jeopardize the bank's reputation. Adopting digital cyber security frameworks can mitigate these risks.

Creating bionic banks

Ultimately, to thrive in the competitive market, your bank must embrace bionic operations. Meaning, it should utilize emerging technologies such as Artificial Intelligence (AI) along with data analytics that

enable your teams to deliver interactive customer experiences and consistent updates on customer interactions.

A smooth sail: An app, not a building!

You need to adapt to the concept of “invisible banking”. This concept will allow your customers to just pick up their smartphone at any time and from anywhere to receive a wide array of financial needs. Therefore, it's safe to say that today’s customer pretty much has access to the whole bank through a smartphone in their pocket.

The future of digital transformation in banking

We’ve already established that digital banking has made our lives easier but to what extent? Let’s find out:

- Round-the-clock access

- Optimization of funds

- More customers control

- A secure digital banking garrison

- Banking in Metaverse

- Making Your bank more human with digitalization

Aspire for digital adaptation

To see your bank be a part of the digital revolution, visit us here to know more about our digital banking solutions here to accelerate your business growth through disruptive digital solutions.