Technology has a hand in nearly every part of the banking sector, from retail and mobile banking to neo-bankstartups, and the effect of technology will continue to propel banking into a digital future.
Fremont, CA: The digital age is transforming how people connect and conduct business on a daily basis, and technological breakthroughs continue to shape the future of banking around the world. The growing demand for a digital banking experience among millennials and Gen Zers is changing the way the banking industry operates as a whole.
Technology has a hand in nearly every part of the banking sector, from retail and mobile banking to neo-bankstartups, and the effect of technology will continue to propel banking into a digital future.
Retail Banking
Retail banking refers to the services that banks can provide to their customers, such as savings and checking accounts, credit and debit cards, and loans. The increased desire of consumers to obtain financial services through digital channels has resulted in a flood of innovative banking technologies that are reimagining the whole retail banking business.
Technology aimed at enhancing retail banks' operating efficiency is having a favorable impact on the market. According to a recent survey, 39 percent of retail banking executives believe technology has the largest influence on cost reduction, while only 24 percent believe it has the greatest impact on customer experience.
To remain competitive, retail banks are also creating platforms in the Banking-as-a-Service (BaaS) area. For example, UK neobank Starling used to just offer B2C retail banking services; however, after developing a BaaS platform, Starling diversified its product and revenue sources, allowing it to remain relevant in the neobank industry.
Online Banking
Mobile banking has eclipsed online banking in popularity, while the overall number of online customers has decreased globally. Mobile banking is increasing at five times the rate of online banking, according to Business Insider Intelligence, and half of all online clients now use mobile banking.
Despite this growing popularity, several banks are still unable to meet the demand for mobile tasks such as bill payment and incentive redemption, forcing them to redirect consumers to online banking. Even this drive, however, will not be enough to popularize internet banking as millennials and Gen-Zers continue to gravitate toward the mobile market.
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