In a world that keeps closing in to 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 population – when these three vital stakeholders are walking the same path, progress is always in sight.
Such strongly signals that digital banks, and even neo-banking, are becoming more and more accepted in the country each passing day.
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 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:
Adding value to a person’s day-to-day life through technology is the ultimate goal of any digital transformation efforts. 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?
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.
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 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.
But we will cut you short this time. Stay tuned to our next blogs as we are about to explore each model more rigorously.
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