Open Banking & Its Effect
Open Banking & Its Effect
Banking is indeed moving out of the confined formats of brick & mortar. The consumer of the modern era does demand services & convenience beyond the boundaries of conventional banking set-up. The digital wave across sectors has also pushed the most complex segment across all to join in, i.e. banking.
These are some of the most significant aspects covered by the existing Digital only Banks in the Market.
➢Lesser ROI Rush
Banks have surely realized to run an experience-driven banking set-up which leverages upon the great experience & translate it into greater ROI. The commoditization of conventional banking products has changed the playing field of banking. Profits have always been a focal point for any banking institution owing to its answerability to stakeholders. However, the focus has indeed shifted from the typical product-driven approach to be client-driven Omni channel digital platforms.
➢ Ease of Access
Banking institutions have understood the significance of convenience over every other offering for the customer. The present players in the market have brought the entire banking solution in a client’s pocket-sized phone. These banking institutions have created great harmonization of every conventional banking product with the digital space. Some of the advancements also use AI based intuitive systems to provide real-time solutions & assistance to their customers.
Probably the biggest noticeable impact of digitization in banking is the reduced amount of paper-based processes. By building paper-less workflow banks have accomplished some significant benchmarks:
- Enhanced Productivity
- Controlled Platform for Processes
- Easy process & product enhancements
Going paperless is a win-win situation for banks as well as the consumer. It helps the customer to manage their portfolio in a secured & controlled environment. Banks can actually focus on better client servicing, technological advancements & productivity improvisation.
➢Superior Transparency & Security
One of the best USP of digital banking is the extent of command they give to their clients. Every transaction is made available on the digital platform using background automation procedures. Some of the digital banks are using OTP as a security feature. However, some have gone one step ahead & have developed a device based recognition system for improved security & ease of access.
➢ A Bouquet of Goodies
Digitization has helped the banks to reduce their overhead expenses. Thus, banks are happily passing on a whole lot of brownie points to their clients. Be it an incentivized movie-booking offer or a weekend restaurant deal; clients are undoubtedly enjoying better deals & discounts. Many of these digital banks have started with mutual fund transactions on their platforms for a holistic banking solution.
Digital banks are surely pushing the limits with each & every advancement offered. These institutions have shown palpable determination towards making banking a pleasurable experience for customers. We do understand that digitization has its own unique set of perils associated. However, a sensible choice would be to move towards the digital space in a gradual yet cautious manner. This is the only way to be more efficient & cost-effective.