Gone are the days when digital banking platforms merely served as an online extension of traditional banking services.
The new era in banking is ushering in impeccable customer experience, enhanced operational efficiency, lower costs, a strong focus on sustainability, and a level of personalization that was previously unattainable. At the forefront of this reform are the modern-day digital banking solutions.
But what exactly sets these modern digital banking platforms apart from the traditional ones? How have they evolved to redefine the banking experience for both customers and financial institutions?
In this article, we’ll explore the world of modern digital banking platforms and why they are quickly becoming the go-to choice for the financial sector.
Understanding Traditional Digital Banking Platforms
Before diving into the futuristic modern digital banking platforms, it’s essential to understand their predecessors – the traditional digital banking platforms. These digital marvels market the first step of the banking sector towards embracing a digital presence. These platforms offer five major benefits:
- Allowing customers to access most banking functions remotely.
- Extending banking services around the clock.
- Reducing the over-dependence on paper with digital records.
- Promoting online transactions to lower the risk of counterfeit currency.
- Encouraging a cashless society to restrict black money circulation.
As revolutionizing traditional digital banking solutions were, they weren’t without limitations. For starters, most of these platforms weren’t optimized for different devices, hampering the user experience. Additionally, there was little to no personalization based on the customer’s behavior or preferences.
And while traditional digital banking platforms were heavily focused on delivering convenience and efficiency to the bank’s customers, they did not add any value to the bank’s employees.
This is where modern digital banking solutions come in.
The Emergence of Modern Digital Banking Platforms
Modern digital banking solutions have emerged to address the need for more interactive, responsive, and personalized banking experiences. Unlike traditional platforms that primarily focus on basic services, modern platforms are more customer-centric. They offer a suite of services that go beyond mere transactions and are adaptable, user-friendly, and provide a more holistic banking experience.
Additionally, advancements in AI and machine learning have enabled modern platforms to offer personalized financial advice and predictive services to enhance customer experience and operational efficiency.
How do Modern Digital Banking Platforms Differ from Traditional Platforms?
The banking sector has undergone a significant transformation, moving from old-school digital banking to a more advanced and all-inclusive modern digital banking experience. This change is not just about adding new features. It transforms how banks connect with their customers and conduct business. Here are some ways in which modern digital banking platforms stand out from traditional ones:
1. Aligning with Demand Acceleration in Retail and SME Customers
Modern digital banking platforms are adept at keeping up with the rapidly evolving demands of both retail and SME customers. Unlike traditional platforms that have a one-size-fits-all approach, modern solutions are flexible and responsive. They cater to a diverse range of customer needs, from instant loan approvals to real-time transaction processing, aligning with the fast-paced lifestyle of today’s consumers and the dynamic requirements of SMEs. These platforms not only make sure that customers are happy and stay loyal but also help banks stay competitive in a constantly changing market.
2. Integration Within the Customer’s Lifestyle
Modern platforms seamlessly integrate into the daily lives of users. They go beyond banking transactions to become a part of the customer’s lifestyle, offering advanced, more personalized features. This allows customers to manage their financial lives more efficiently and make informed decisions, all within a single platform.
3. Collaboration with Fintechs and Technology Providers
A defining feature of modern digital banking solutions is their ability to collaborate with Fintechs and other technology providers. This collaboration leads to the introduction of innovative, AI-driven financial solutions. By leveraging the expertise of Fintechs, banks can offer cutting-edge services that meet the unique needs of their customers.
4. Increased Business Volumes with Minimal Impact on Operational Costs
Modern platforms allow banks to handle increased business volumes without increasing operational costs. This efficiency is achieved through automation, AI-driven processes, and cloud-based services that reduce the need for physical infrastructure and manual interventions. As a result, banks can scale their services quickly to meet customer demands while keeping operational expenses low.
5. Low Carbon Footprint for Each Customer
Modern digital banking solutions have the ability to highlight and assess each customer’s carbon footprint. This helps understand and mitigate the environmental, social, and governance (ESG) impacts associated with financial activities.
6. Accelerate Progressive Transformation
Modern digital banking solutions are built on a no code architecture allowing banks to adapt their existing products and experience without extensive coding or dependence on the vendor. Banks can also create the entire banking experience from scratch using the Microservices, APIs and other tools provided by the vendor. This helps banks in reducing tech debt and accelerating innovation.
7. Transformation for the whole bank
Better experience should not just be restricted to end customers. Modern digital banking solutions come with intelligent portals for branch, sales and marketing teams, developers, agents, merchants and more. For instance, a modern branch banking system can enable the RM, operations team or a branch manager to perform all banking functions on the move. Marketing teams can create campaigns faster with modern content management systems and agents can acquire or service customers through a single portal.
The final note
Modern digital banking solutions are not just redefining customer experiences. They are reshaping the very fabric of the banking industry.
In this rapidly changing world, Intellect Global Consumer Banking (iGCB) is leading the way in developing next-level digital banking solutions. iGCB’s commitment to innovation is reflected in their tailored offerings for banks. These solutions are designed with a deep understanding of modern banking needs, so financial institutions can tackle today’s challenges and be prepared for the future.
With iGCB’s innovative solutions, banks can confidently navigate the digital transformation and stay competitive, relevant, and provide exceptional value to their customers.
