Why are Traditional Banks afraid of the Truth?https://exist.com/wp-content/uploads/2021-09-17_bfsi_blog.jpg768487Exist Software LabsExist Software Labs//exist.com/wp-content/uploads/logos/exist/logo-default.png
Have you noticed that more and more businesses are accepting online payments using bank transfers, mobile payments thru phone numbers, or via QR Code?
That is because the new trend of banking is mobile and internet banking. Banks are now accelerating and scaling their assets in capitalizing on digitization. But there are some traditional banks that still don’t want the idea of digital transformation. For them, Digital Banking is still unstable. However, Bangko Sentral ng Pilipinas is encouraging traditional banks to enable digital banking and explore innovative ways to reach customer expectations and have seamless transactions.
Before the pandemic, it was usual for customers to go to the bank to deposit their savings, apply for a loan, or pay their insurance. But in the new normal, a lot of customers shifted to do it online. It’s easier, convenient, and effortless. Digital Banking paved the way for customers and banks to get connected closely. And it shocks the traditional banks to face the truth that online banking dominates the competition.
But before that, let’s see what Digital Banking is.
Digital Banking is doing everything that a traditional bank can do — Online. More than that, there are many features that digital banks can offer more than normal banks can like shopping, promos, micro-personal offerings, and more! It bridges the customers and other institutions by getting their essential needs and their normal purchases.
To understand more why traditional banks are afraid of the truth, let’s get to the point here.
The truth is:
1. DIGITAL BANKING IS FOR EVERYONE
The rise of technology taught us that having a mobile phone is important. Why? Not only does everyone now have a smartphone, but also the benefits that smartphones give the user such as communication, entertainment, etc. are within easy reach. Now, mobile internet banking is one of the most essential things that a person must have. Everyone can now enroll online even in their busiest time; it’s because they don’t need to go to a physical branch. Before, we thought that having a savings account is expensive but now, some banks offer an account for free or for a small balance! It is not exclusive nowadays, it is now for everyone!
2. EVERYTHING THAT LEADS TO FINANCIAL TRANSACTIONS IS INSIDE AN ONLINE BANK
As long as there are transactions, your online bank will be relevant. With the power of technology, you can pay and purchase online at a click of a button. You can shop, do groceries, pay bills, and send money to your loved ones all in one place! Because of this, digital banks are helping their customers manage their financial lives at their own convenience.
3. CUSTOMERS WANT A REAL-TIME BANKING EXPERIENCE
How easy is it to manage your finances using a mobile bank? EFFORTLESS. We don’t have to go to an Automated Teller Machine (ATM) to check our balance. Customers want a real-time banking experience because they want to manage their money anytime, anywhere, whenever they want. Imagine you are hungry and you want to go to a drive-thru to get your food as fast as possible when in fact, you can just get your food at a click of a button via food delivery app. It is also the same with sending money to your account. You are getting it instantly and comfortably.
4. DIGITAL BANKING IS POWERFUL
The points above prove why traditional banks are afraid of the truth. Digital banking is powerful because of the technology implementations inside of the application like Big Data, eKYC, Cloud & Etc. These technologies enable the bank to monitor their customers, do real-time reporting, offer personalized promos, and engage clients in a more personalized way. This is a win-win situation on both ends. Customers can do banking, Banks with digital banking satisfy their customers!
Digital banks and banks that also present digitally have a huge advantage over traditional banks. They are advanced in creating promos and monitor what to improve because of data analytics, being flexible in fixing errors, and trying new features if their customers leave reviews on their applications.
Traditional Banks must think outside the box in taking a step forward to shift their practices in banking. This season is the right time to unlearn other knowledge and accept the fast-paced changes in the environment. In order to compete, traditional banks need to be part of digital transformation and create innovative & competitive advantages. Technology has a lot of things to offer that both banks and customers can benefit from.
Exist Software Labs, Inc. is committed to extending our assistance to several banks with their Digital Onboarding requirements. We have been in the business for 20 years, and the mission to enable corporations to go on digital and have a competitive advantage in this fast-changing world is at our core. Go where the possibilities are boundless!