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Two (2) Ways to Know that your Mobile Banking is Safe. Java, Java Philippines
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Will Mobile Banking Ever Rule the World?
Will Mobile Banking Ever Rule the World? 650 486 Exist Software Labs

In today’s current trends, mobile banking and digital platforms are most preferred and most used due to the convenience and faster process it offers with just a click of a button. As far as digital platforms are concerned, banks and financial institutions are also shifting their focus in capitalizing on adopting new technologies like mobile banking to modernize their systems into digitalization. In our era, having a mobile phone is essential since this is the primary gadget that people are using in contacting their friends.

But the story does not end there. When the pandemic started, businesses embraced the changes and opened their minds to digital transformation. From brick-and-mortar to e-commerce, restaurants to food deliveries, and physical banks to mobile banking. Why? Because it allows the users to perform their needs and get what they want in just a few clicks. 

Primarily, customer behavior is one of the significant factors why the majority of the Banking, Financial Services & Insurance (BFSI) industries are positioning themselves where their customers are present – the internet. Hence, financial institutions are creating digital roadmap and strategies to better understand the behavior of their customers as they create their digital platforms.

AVAILABILITY FOR EVERYONE (MOBILE BANKING)

Thinking about the advantages that mobile banking can offer to people, it’s about enrolling in a bank account online. In the 2019 Financial Inclusion survey, 51.2 Million Filipino adults are still unbanked. That is 71% of the total adult population! Having said that, with the long queues in the physical branches of the banks, it is very difficult to cater fifty million people to enroll them in a bank account. The good news is, fintech companies and digital-only banks are providing account onboarding in their mobile banking app for the people who want to open a bank account.

Moreover, Filipinos are now using digital wallets as part of their day-to-day transactions. This can also be observed by the banks that want to capitalize on digital banking. The point is, if financial institutions can be present where their customers are, there is no reason to be afraid.

DIGITAL ROADMAP

To strengthen their online banking, the banks’ goal is to create a highly personalized customer experience with their users. For that to happen, there should be a digital roadmap that can be presented in order to visualize the progress of their desired outcome in their banks. Digital transformation is not an overnight process, it comes with adopting new technologies that will emerge systems and integration with other institutions and third-party applications to have inter-connectivity.

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!

Strengthening their Digital Insurance Offerings: Exist and Comarch Partnership 2022. Java, Java Philippines
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Strengthening their Digital Insurance Offerings: Exist and Comarch Partnership 2022
Strengthening their Digital Insurance Offerings: Exist and Comarch Partnership 2022 800 507 Exist Software Labs

Nowadays, digitalization is spreading more quickly than ever. Digital Insurance touches all aspects of our lives: managing your finances, driving an automobile, and creating your morning coffee, among others. It additionally happened to the insurance business at a scale never seen before. Acquiring insurance is sort of a relationship. And like any quiet relationship, the key part is TRUST.

To strengthen its Digital Insurance Offering, Exist Software Labs, Inc. has partnered with Comarch. Exist is a global technology innovator providing enterprise solutions that also specializes in Digital Banking Solutions. With more than 20 years of expertise in top-of-the-game technologies like Java and Open Source, Exist built more than a trust but convenience to a lot of Filipinos in terms of seamless processes in many platforms.

Comarch Digital Insurance has a deep understanding of the insurance business. Their product ensures consistent client expertise across devices and sales channels. Each agent and manager is equipped with the right tools to set up their task. Due to alerts and reminders, their work gets easier and simpler. Sales goals are often well-monitored in real-time by agents and managers so the overall performance and sales results are perpetually improved. Versatile content could be a nice support for agents willing to boost their skills and skilled ability.

This will empower lots of Banks and Financial Institutions who want to scale their programs and make them simpler, analytical, and digital. With our answer, the content is often simply created, altered, and expanded. What makes the Comarch Digital Insurance & Exist Partnership powerful is that with the power of Big Data & Analytics, desired analysis and offerings would be easier. The client has access to a good variety of products, additionally within the direct channel.

Comarch & Exist permit the agent to enter data, present and customize predefined variants, prepare the ultimate supply and issue the policy. With the right use of data, the agent can monitor the client’s information. The 360-degree client view permits the agent to access all necessary data and communication history. The agent will effectively handle insurance sales and repair processes.

This answer allows policy observation and after-sales operation claim registration. The feature supports sales individuals whereas clients are given a dedicated portal to win their loyalty. Insurance can be available to everyone with just a tap.

Exist Software Labs, Inc. is one of the partners of Comarch in offering Digital Insurance in the BFSI industry.

Exist Software Labs, Inc. is one of the partners of Comarch in offering Digital Insurance in the BFSI industry.

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Exist fosters a future-ready digital banking technology that equips its banking and fintech partners with the agility to adapt to ever-changing market demands.

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Why are Traditional Banks afraid of the Truth? Java, Java Philippines
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Why are Traditional Banks afraid of the Truth?
Why are Traditional Banks afraid of the Truth? 768 487 Exist Software Labs

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

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!

FINAL THOUGHTS:

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!

Robinsons Bank Took a Big Step in Advancing their Mobile Banking System. Java, Java Philippines
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Mobile Banking System in 2022: Robinsons Bank Took a Big Step in Advancing their MIB
Mobile Banking System in 2022: Robinsons Bank Took a Big Step in Advancing their MIB 768 487 Exist Software Labs

In the last twenty-four years, Robinsons Bank empowered different groups and individuals to become a bank of choice in fulfilling their changing needs. 

“We’ve been partners with Exist for over 2 years, and they’ve developed a number of Digital Solutions for the bank.” – Mr. Ramon Abasolo – SVP & Chief Digital Officer, Robinsons Bank

Robinsons Bank took a big step in advancing their mobile banking system that will help their operation faster and smoother. It also includes seamless banking for their customers. All became possible by partnering with Exist Software Labs, Inc. who has been one of the tech-industry leaders in the Philippines that specializes in digital banking solutions.

In 2019, Robinsons Bank and Exist teamed up for the Advanced Mobile Banking project. It provides a direct connection with clients and allows them to safely perform banking transactions at home for an overall better banking experience.

“We’re quite impressed with the scale & know-how of Exist. Their technical scale, knowledge of the technology stack, microservices, design, architecture & as well as their project management.” – Mr. Ramon Abasolo – SVP & Chief Digital Officer, Robinsons Bank

In our fast-paced environment, Robinsons Bank has successfully thrived and has innovated their banking systems that truly allow their customers to do transactions online.

With the help of Exist, they launched different programs in mobile banking. This partnership has a lot of opportunities to grow and both institutions agreed to engage and further add new plans for the project.

With regards to improving the online banking experience, the said companies collaborated again. Robinsons Bank sought to improve its online banking experience and needed a partner that embraced the same agile principles.

Exist Software Labs uses top-of-the-game open-source technologies like Kubernetes and in-memory data structure stores. This improvement enabled Robinsons Bank users to experience faster, smarter, and easier banking.

Today, Robinsons Bank Mobile Applications are available in Google Play Store and Apple App Store. Thousands of people are using their mobile banking app and joyously doing their transactions online safely wherever they are.

As of writing, Exist remains the Technology Partner of Robinsons Bank on their Digital Transformation. Having said that, RBank customers can enjoy the upcoming innovations that RBank has in store for them.

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Exist fosters a future-ready digital banking technology that equips its banking and fintech partners with the agility to adapt to ever-changing market demands.

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Banking Modernization - Making Your Bank Cloud Ready, Java, Java Philippines
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Banking Modernization 2022- Making Your Bank Cloud Ready
Banking Modernization 2022- Making Your Bank Cloud Ready 768 487 Exist Software Labs

Last September 29, Exist Software Labs in partnership with Microsoft, conducted a webinar about Banking Modernization. As one of the important parts of digital transformation, our speakers discussed topics that IT Heads and Decision Makers in the BFSI Industry need to learn and apply in their organizations.

Banking Modernization

Exist’s Vice President for Technical Services Mr. Jonas Lim introduces the event with a warm welcome to the audience, providing them with an overview of the event and what the speakers will discuss.

The following are the topics our speakers discussed:

  • Having a Cloud-Ready Application
  • Migration from On-Premise to Cloud
  • Steps on having a BSP-Approved Cloud Environment
  • Modern Data Warehouse
  • Microsoft Solutions Assessment Program  

In emphasizing the importance of having a cloud-ready application in banks, Dennis De Vera, Exist’s Solutions Architect told us that having a cloud-ready application will give the banks a seamless process of scalability, a secured platform that will ensure all the data and reliable infrastructure.

He also gave some points to assess if the organization is already cloud-native like the management, infrastructure, development, & consultants who specialize in the practices & implementation of this kind of project.

Mark Martinez shared the migration from on-premise to the cloud. He told us the difference between the horizontal and vertical development strategy and how innovative the technology is in building the cloud infrastructure.

On the technical side, He discussed how the transition was delivered in Banking Modernization. Using CI/CD tools like Jenkins, Azure DevOps & CISCO, the migration became possible. It is more portable with the use of build files (yaml) that can be pushed to the repository.

He said that sooner or later, serverless is the future with Banking Modernization. 

On the other hand, we have speakers from Microsoft that discussed Modern Data Warehouse and Microsoft Cloud Solution Assessment Program.

Emil Pastor – Cloud Solution Architect, Data & AI, and Marian Tolentino – Solutions Sales Professional from Microsoft speaks about the Modern Data Estate, Data Strategy, and Link to Value and Solution Architecture. They shared the common challenges that BFSI industries are experiencing nowadays and how Microsoft would help in eliminating these challenges.

Truly, data is important as it creates value for the businesses to observe, analyze and create strategy to build a process that is seamless and innovative in both business and customer end.

Moreover, Russell Mazid who specializes in Cloud Solution Assessment discussed where business cloud journeys start and how it will give an advantage to the BFSI industry. 

Check out our Digital Banking Solutions and learn about how it helped some of the banks in the Philippines in the country and provided innovative and seamless processes.

Exist Digital Banking
The Next Big Thing in Internet Banking - Exist Software Labs, Java, Java Developer Philippines
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The Next Big Thing in Internet Banking 2022
The Next Big Thing in Internet Banking 2022 768 487 Exist Software Labs

What is the “Next Big Thing in Internet Banking?”

Everyone was challenged on how to cope up in the corporate world because of the worldwide effect of COVID-19. Businesses that do their operations physically were forced to close their business and others were bankrupted because of the lockdown. But more than the negative effects of COVID-19, it also opened many entrepreneurs’ eyes to invest in digitalization or, let’s say, digital transformation.

So what is the correlation of this in the banking industry? Of course, banks were also affected by the pandemic, and a lot of users need to do banking regularly (transferring funds, depositing money, loans, and paying bills). The question is, what is the “Next Big Thing in Internet Banking?”

Surprisingly, banks have adapted to this technological era by accelerating their operations online. As customers go online, many banks have pivoted their strategies to be present where their customers are. Here is the Next Big Thing in Internet Banking.

1. Cashless Transactions

The rise of online shopping gives way to the API tools in using payment gateways to provide users with seamless transactions like capturing a QR Code, saving your debit/credit card in your online shopping app or platform, and giving your ATM card for transactions. For consumers, a lot of payment options and methods would be great! Many people are using more cashless transactions in groceries, shopping, and other financial transactions. This makes the users  more comfortable with the safety and security of their homes. 

Moreover, cashless transactions let them have thinner wallets & prevent them from having heavy coins! 

2. From Brick & Mortar to Click and Mortar

While we are still on lockdown, some banks decline their operations physically. The relevance of Brick and Mortars are not the same as before since we are forwarding into the new normal. The use of digital services via mobile, computer, and tablet is now the trend in doing banking. Even banks are operating digital-only (Neobanks) too! Today, we can do banking, doing our financial errands at the click of a button without going outside of our homes!

From Brick & Mortar to Click and Mortar, everything in internet banking is possible today.

3. Micropersonalized Banking

Have you experienced in the online world that some applications or websites know you as if they are talking to you personally? Like you are the top priority? Well, that is not impossible because of Big Data and Analytics. This AI-driven analytics gives a huge contribution in treating customers right – even virtually! Banks can now offer the users loan or borrow money at the right moment that they need it, dynamic suggestions of products and services, detailed offerings, budget and purchase recommendations (based on your web behavior), and promos around their nearby location!

Micropersonalized banking is customer personalization. If we can translate “the customer is always right in the digital era, then that is analyzing their behavior and offering what is appropriate.

There will be more innovations to come in the future, and the opportunity for internet banking is bright and exciting. As part of the solution, let’s expect higher expectations and demand from customers, be agile in future-thinkers, giving them a seamless process of banking and satisfaction.

Exist Software Labs, Inc and Internet Banking

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to rapidly shift and compete in the digital economy.

For those in need of a modern and agile digital banking solution, Exist offers a faster and more flexible way for banks to create and implement a solution that can be tailored to their own unique needs which can deliver a seamless customer experience across any device.

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!

Digital Banking: Expectation VS Reality, Java, Java Developer Philippines
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Digital Banking 2022: Expectation VS Reality
Digital Banking 2022: Expectation VS Reality 768 487 Exist Software Labs

With the rise of technology, a huge number of businesses are also transitioning from traditional to digital – including banks and other financial institutions. In this modern era of technology, what are the expectations and reality of Digital Banking?

According to Bangko Sentral ng Pilipinas, consumers now adapt to use digital payments and prefer to use online transactions because it is safe and convenient.

“New adopters have experienced first-hand the advantages of going digital. Their positive experiences are expected to create a ripple effect and to promote the wider use of digital payments” the BSP explained.

COVID-19 also pushed us to use digital platforms due to health and safety concerns. Payments and transferring money are all seamless because everything is now online. It bridges family’s finances in paying bills and sending funds, shopping online, and other financial transactions. Social Distancing is not a problem at all!

EXPECTATION: You can create an online bank account — Anytime, Anywhere!

REALITY: Yes, but there is an enrollment process for verification purposes.

Internet Banking helped many users to create an online bank account. As much as every bank wants to do it, your security is also their responsibility and concern which is why they are including our personal information like full name, birthday, email address, and phone number to verify and match the details on their data. Furthermore, digital banking activation process will likely need our personal details for verification. With that said, if there’s no wrong answer and all the details are legitimate, you can now have your online bank account!

EXPECTATION: 100% Secured Banking Process

REALITY: Digital Banking is 100% Secured and Simplified its User’s Experience

Thanks to new technology, banks and users can now ensure that everything is secured by the use of multiple security processes before opening their accounts or transferring funds. These are the types of user verification or authentication that was created before performing transactions:

  • Two-Factor Authentication is a security system requiring a clear identification to proceed or access a specific command.
  • One-Time Password (OTP) – digit security code that is only valid for a single login session or transaction. It is a randomly generated code that is impossible to guess and reduces the risk of hacking an account.
  • Email Verification Code – is like a One-Time Password but sometimes comes with a combination of numbers and letters. The code will be sent through the account’s registered email to fully check if the login is legitimate.

EXPECTATION: Users Expect that banks are always there for them

REALITY: Digital Banking is Omnipresent

Omnipresence means “widely present” at all times. With that being said, Yes, there’s a limitation in banks where they cannot always reply fastly to user’s concerns, but users can contact them directly with different channels! The reality is, Banks are thinking about their customers. They are there where their customers are – even online!

With the fast-paced environment, traditional banks must learn and adapt to the new normal. Huge numbers of users are now comfortable with digitalization and financial institutions have to bring convenience too with their customers.

Exist Software Labs, Inc and Digital Banking

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to rapidly shift and compete in the digital economy.

For those in need of a modern and agile digital banking solution, Exist offers a faster and more flexible way for banks to create and implement a solution that can be tailored to their own unique needs which can deliver a seamless customer experience across any device.

What do you think? Does digital banking meet your expectations or exceed them?

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!

PBCOM-Exist enriches remarkable years-long partnership; Bringing more banking tech upgrades in 2022, Java, Java Philippines
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PBCOM-Exist enriches remarkable years-long partnership; Bringing more banking tech upgrades in 2022
PBCOM-Exist enriches remarkable years-long partnership; Bringing more banking tech upgrades in 2022 768 487 Exist Software Labs

PBCOM’s Chief Operating Officer, John Howard Medina, had this to say:

“The team at EXIST has brought us several technology innovations over the last few years and we look forward to continuing to push the digital envelope with them.”

Philippine Bank of Communications has strengthened its partnership with Exist Software Labs, Inc. which has been a key technology consultant and implementation ally.  By this, the alliance allows both parties to continue to co-develop the innovations needed for the bank’s digital channels.

This partnership began in 2016 with the creation of the omnichannel PBCOM Online Platform (POP) and in 2019 the PBCOMobile self-service banking app.

Exist’s VP for Engineering shared his excitement about flourishing the said partnership.

“The partnership between PBCOM and Exist is doing great. It is built on mutual trust and a common commitment to ensuring success to PBCOM’s digital roadmap. As a technology partner, we continuously aim to work closely with PBCOM to ensure that the most appropriate and practical technology options will always be available for PBCOM’s digital strategy.”

PBCOM and Exist

Here is the timeline that marks the milestones that Exist and PBCOM achieved throughout the years:

PBCOM tapped Exist to develop POP

In 2016, PBCOM decided to relaunch its electronic channels after years of remaining dormant despite introducing online banking as early as 2003. PBCom Online platform (POP) is a retail omnichannel digital banking service.

POP was launched to the public

POP is an omnichannel banking application that allows its users to perform secure banking transactions like the following:

• Viewing account balances
• Monitoring transaction history
• Downloading bank statements
• Transferring money
• Paying bills
• Sending money to third-party bank accounts

Internet and mobile versions of the app have the same look and feel, making it easier to understand and use.

It is within this year also that they subscribed to Exist Maintenance Service for POP. This agreement between the two is annually renewed.

Exist developed the OTP platform for POP

This was added to let POP have multi-factor authentication to improve its security and avoid unauthorized access. Exist also had several Change Orders with PBCOM in 2018 for the constant improvement of POP.

PBCOM partnered with Exist once again to develop PBCOMobile

In 2019, PBCOM decided to level up its digital channels by working an online onboarding and banking application called PBCOMobile. The application was launched within the same year as well. The mobile banking app is now accessible for new PBCOM customers who want to open an account online and perform banking transactions without ever having to visit a bank branch. PBCOM also subscribed to Exist Maintenance Service for POP OTP in the same year.

PBCOM and Exist are under a contract valid until 2025

Again, PBCOM subscribed to the Maintenance Service for PBCOMobile. Exist ceaselessly ensures that PBCOM’s applications are performing efficiently and error-free. Currently, the two’s contract has a 5-year lock-up, which actively demonstrates that they will work hand-in-hand for PBCOM’s applications and online technologies until 2025.

Download our FREE datasheet!

Exist fosters a future-ready digital banking technology that equips its banking and fintech partners with the agility to adapt to ever-changing market demands.

Get my copy

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to shift and compete in the digital economy rapidly.

Digital Banking Models to Lead Transformation in 2021 and Beyond 1 of 3, Java, Java Philippines
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Digital Banking Models to Lead Transformation in 2021 and Beyond 1 of 3
Digital Banking Models to Lead Transformation in 2021 and Beyond 1 of 3 768 487 Exist Software Labs

In a world that keeps closing into even more modernized digital banking models, global initiatives that are being put into place to slash the reliance on physical touchpoints only make perfect sense.

Not only that private sectors are immensely investing in going online, but there has also been some legal support for the modern banking cause.

In the Philippines alone, House Representative Joey Salceda of the 2nd district of Albay has been working on the Virtual Banking Act’s legislation. One of the aims of this act is to increase foreign participation. Simultaneously, it intends on learning more about financial technology from global resources.

Additionally, the Central Bank issued a regulation last July. It proposes to make digital banks a new classification distinct from universal, commercial, thrift, rural, cooperative, and Islamic banks.

Modernizing personal banking and fintech opportunities are also eminent as the tech-savvy, young populace is dominating the workforce.

This age group is also currently considered as the biggest earners. Doubtlessly, they would desire nothing less than convenient and easy ways to accomplish day-to-day tasks, say, managing their finances.

Government, private sectors, and the plurality of the population – when these three vital stakeholders are walking the same path, progress is always in sight.

Such strong signals that digital banks, and even neo-banking, are becoming more and more accepted in the country with each passing day.

 

Digital Banking Models

Digital banking models refer to various approaches used by financial institutions to deliver banking services through digital channels. These models leverage technology and automation to offer a wide range of financial services to customers in a more convenient, efficient, and cost-effective manner.

Digital banking models provide customers with greater convenience, speed, and accessibility while enabling banks to operate more efficiently and effectively.

Neo-banking is a term for modern-day digital banking that mainly capitalizes on the rampancy of the internet. Its operations and offerings are heavily online-based. Most of the time, neo-banks do not have physical branches.

With the increasing support for this concept, the country can expect a huge wave of new players in the industry. This poses a further threat to traditional banks that are still taking much time in improving their digital playing cards. Therefore, traditional banks investing in solutions that can take these threats head-on should become more mainstream.

However, every investment comes with risks for both enterprises and the target users. From these risks sprout doubt. With this at hand, how should banking and fintech providers mitigate the half-hearts of the market? At the same time, how will they ensure that the technologies they will be offering are what the market needs, wants, and deserves?

If we are to aggregate all the floating idealisms on addressing this, we will boil down to a few specific models that will fit the bill in the face of growing and changing market demands and needs.

As banking solutions developers, we believe that digital banking technologies should lay their building blocks on human-centric, cloud-ready, and threat-elusive models. Here is why:

People-centric Model

Adding value to a person’s day-to-day life through technology is the ultimate goal of any digital transformation effort. It is the ultimate goal that enterprises should aspire to achieve.

Such entails that the human factor should be the utmost consideration in forging ahead. That does not only include the customer end but as well as the employees.

Is the solution fit for their needs? Will the solution require fewer efforts from them, thus making their tasks smoother to accomplish? Will it give them the relief that they did not know they needed?

Cloud-Ready Model

Modern times and younger markets call for an up-to-date approach. Implementing cloud technology into the banking arena improves data generation and processing.

Cloud-ready solutions are also known to be more scalable and flexible, allowing developers to add software improvements effortlessly.

The Central Bank is in full support of deploying banking processes in the cloud even before the pandemic. Nevertheless, the health crisis still boosted the normalization of the cloud-ready model and is now being utilized by several banks in the country. Still, the use of cloud computing in banking is yet to be fully explored.

Threat-Elusive Model

One of the most critical decision breakers for prospect users is whether banking online is secure or not. Security threats over the internet are pretty rampant, so where they are coming from is understandable.

Howbeit, there are tools and ways to address these concerns, assuring the users that performing their banking matters online can be a safe option.

Adapting these Digital Banking Models is not impossible anymore. One merely needs the right direction and resources for it to take shape. Better the soonest, as the first to market always has an advantage.

Digital banking models are different from traditional banking models in several ways. Some of the key differences are:

  1. Digital-only: Digital banking models are entirely online-based, and they do not have physical branches. Customers can access their accounts and complete transactions through mobile apps, websites, or other digital channels. Traditional banks, on the other hand, have a physical presence in the form of branches and ATMs.
  2. Cost structure: Digital banking models have lower operational costs compared to traditional banks, as they do not have to maintain physical branches or hire as many staff. This enables them to offer lower fees and better interest rates to their customers.
  3. Customer experience: Digital banks prioritize customer experience and convenience. They offer features such as 24/7 customer support, instant money transfers, and seamless account opening processes. In contrast, traditional banks may have limited customer support hours and require customers to visit a branch to open an account or complete certain transactions.
  4. Technology-driven: Digital banks rely heavily on technology to deliver their services. They use advanced analytics, AI, and machine learning to provide personalized recommendations and insights to their customers. Traditional banks may also use technology, but their systems are often less integrated and less advanced.
  5. Regulatory environment: Digital banks are subject to the same regulations as traditional banks, but they may face additional regulatory challenges as they operate entirely online. They may need to comply with additional data privacy and cybersecurity regulations, for example.

Overall, digital banking models are designed to offer a more efficient, cost-effective, and convenient banking experience for customers.

Transform into an omnichannel platform

Exist Digital Banking and Fintech have already streamlined the solutions-building process by creating a foundational banking app that can easily integrate with core banking systems using a standard set of integration connectors to equip banks with capabilities to shift and compete in the digital economy rapidly.

But we will cut you short this time. Stay tuned to our next blogs as we are about to explore each model more rigorously.

Download our FREE datasheet!

Exist fosters a future-ready digital banking technology that equips its banking and fintech partners with the agility to adapt to ever-changing market demands.

Get my copy
Digital Banking Transformation: Why go Digital? Java, Java Philippines
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Digital Banking Transformation 2021: Get ready to go Digital
Digital Banking Transformation 2021: Get ready to go Digital 800 507 Exist Software Labs

Going full-on digital in the banking sector has been the talk for years. And if there’s one thing that the recent pandemic called attention to, it’s that pushing for digital banking transformation is the way to go.

So, why is it the right choice for banks to go digital?

Harnessing today’s technologies to advance the way we bank can work beyond expectations. Not to mention, it has the power to propel the state of digital banking to new heights and reinvent the flow of the world’s finance.

Now is the best time to realize your organization’s digital banking initiatives. Stepping up and gearing towards the future of banking technology are redefining the expectations of both executives and customers.

The shift of customers to digital banking

While we can agree that consumers are kings, digital banking makes managing finances simpler and accessible at any time, anywhere.

Visiting a physical branch to make deposits, apply for loans, transfer money, and pay bills is now an option. These services (and more) are becoming readily available through digital devices.

In the Philippines, ATM transactions declined by 25% and value by 30% since the onset of ECQ. At the same time, money transactions using e-payment services spiked.

The Bangko Sentral ng Pilipinas also reported that around 4.1 million digital accounts were created among banks and e-wallet platforms. These numbers represent that Filipinos are changing their preferences from traditional to mostly digital due to social distancing protocols.

Looking forward, 3 in 5 Filipino bankers will switch to a more digital experience in banking.

While 4 in 5 will open new accounts with competitor banks that will dissolve their relationship with their first bank. (Fintech and Digital Banking 2025 report) With this at stake, it’s an instinct for banks to get right into the competition and face it head-on.

Attracting and retaining customers has always been a challenge, but now, it’s a step further. And a step towards finding the right technologies for the right services is a step in the right direction.

Common challenges faced by banks

With this in mind, there must be challenges that banks encounter that hinder the digitalization of their banking system, right? As a matter of fact, yes.

Based on a report, 86% of banking executives say that their legacy banking system is too complicated and the main reason that hinders them from enabling digital interactions with their customers.

In the same study, even though 86% of the respondents agree that digital is a high priority, only 19% have a clear digital strategy. (Boston Consulting Group’s Global Corporate Banking report, 2018)

We can infer from this survey that digital transformation has always been an integral part of most business initiatives.

But, steering the ship and managing the scales to maximize this considerable investment is a struggle. In other words, banks prioritize the move to go full-on digital, but they’re moving at different paces.

What to do?

Just like with any business transformation, a strategy is first and foremost. Above all, a top-down, integrated approach starting from the C-suite with the CEO steering the ship and involving every aspect of the organization is the best course of action.

The Boston Consulting Group recommends four priorities in making this happen:

1

Reinvent the consumer journey

There are critical points in the consumer journey that matters most, and banking providers should take notice. This course of action will vary across different customer segments and will require continuous improvement and streamlining processes. The ultimate goal is to digitize the experience from start to finish.

2

Leverage the power of data

Advanced data analytics will empower banks to understand their current and potential customers better. Through data mining, or finding patterns and correlations through data, banks can use their customers’ data to predict outcomes based on their behavior. This will improve prospecting and prioritizing leads that suit best with services offered.

3

Redefine the operating model

A digital experience for speed and convenience, and a human experience for advice and resolving issues. Customers want the best of both worlds. Finding the right digital operating model for your business is up to you, whether it’s an added service, a new line of business, or a digital native.

4

Build a digital-driven organization

Prioritizing digital will require a distinctly articulated strategy, funding, talent, working agile, and company culture to take risks willingly. It’s not easy to achieve but can heap benefits in the long run.

To sum up, if traditional banks want to stay afloat, they should start and take advantage of new banking technologies.

It’s also an excellent tactic to streamline the banking experience, choose the right operating strategy, and embed the digital mindset within the organization.

ROI in digital banking

But of course, going digital is not an easy feat. It will involve a lot of resources and cost you money, time, and valuable resources. Before you proceed with the investment, what’s in store for you?

We know that return on investment is essential in any business transformation initiative. Knowing these can speed up executive buy-in and identify the right technologies for your bank.

There are four top reasons why executives should invest in digital banking:

1

Get more customers

Banks and financial technology companies with a digital presence attract and retain more customers. The freedom of choice for consumers to opt for a digital and human experience empowers them in handling their finances.

2

Targeted offerings

Use customer data to easily convert clients with just a tap of a button on their device. You can do more with target marketing, upselling, cross-selling, and even establish long-lasting relationships with customers.

3

No need to open a new branch

Even with more customers, it is not necessary to open new physical banks, which will save you a ton.

4

Go paperless

From sending e-statements to digital onboarding and marketing offers, you can save a lot in going digital.

Digital is the future

Keep in mind that consumers are online, and so should banks. Omnipresence is a superpower the best banks have. Allowing your customers the freedom of choice to access their finances, anywhere, at any time, will increase your market share in attracting and retaining clients.

Moreover, going digital can bridge the gap between banks and their market even better. It is a race toward digital transformation, and staying behind is not a safe choice. Digital is the future, and it’s fast approaching. If you’re looking for a solutions partner to work with you, we’re right here.

Exist has streamlined the solutions-building process that will complement your existing banking system. From mobile and internet banking to onboarding and origination, we can even tailor-fit our solution to your unique needs.

That and more on our next blog on why Exist is your innovation partner of choice.

Take your next step with a banking innovation that the future needs. ‘Till our next!

Check out our video!

Watch our Digital Banking Advocate, Jem, as she shares in her vlog how Filipino customers are shifting their banking preferences. What are the common challenges faced by banks? What to do? And in what ways can you get your return on investment?

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