Neobanks, also commonly known as digital banks, have been on the rise lately. While offering the same services as any modern bank, digital banking news has been grabbing the attention of the public due to one major difference: They exist only online.
Digital Banks Living Digitally Only
A true digital bank by definition does not need a brick and mortar branch. While there is a need to have a physical office for regulatory and administrative operational purposes, these have little to do with dealing with direct banking.
All digital banks need is a well-established website and a mobile app so that account holders can access the different financial services on offer. Depending on the services, the only thing physical about the banking operations can just be a physical card (credit or debit) for users. For countries that have contactless POS commonly, a physical card may even be optional. The card can be digital too, with the non-corporeal card either using the NFC devices (in mobiles, smart watches, etc.) or just a bunch of numbers within the app itself.
With a generation that is tech-savvy and prefers to have all of their banking needs at their fingertips, digital banking is all the rage these days. Even for people who are normally used to walking into their bank branches, digital banking technology news these days show they are more open to adapting to the online existence.
Key Digital Banking Technologies in the Future
While many may say that the digital banking technology is gaining traction because of the evolving consumer demands, some latest digital banking tech news tend to reveal different reasons.
In the last few years, there has been a massive development in different technologies that the digital banking sector is finding extremely useful for their current and upcoming services.
As we humans become more interconnected with technology, we generate tons of data daily without even realizing it. Take into account the simple case of browsing the internet or watching videos on streaming services. While this may not seem much, the data reveals a lot about ourselves.
With insights into their consumers and target markets, digital banks can shape their existing services, and even design new ones that will cater to the needs of their customers, without even the latter realizing it.
Artificial Intelligence (AI) is the talk of the town lately, thanks to pushes in its evolution such as ChatGPT. AI in the digital banking sector can play a massive consumer experience, including customer services.
With AI, digital banks can have CSRs that are always online and ready to help, guide and resolve issues of the customers. For most consumers, they will not even realize they are chatting with AI based CSRs.
If you are a user of voice assistants like Alexa, Google and Siri, you know how advanced these are. With voice recognition making leaps each year, digital banks can combine this technology with AI to offer a completely new level of banking operations.
One very good example of this is the eventual ability to make transfers with voice commands. This will remove the need to take multiple steps, replaced with just one sentence. All the account holder may need to do is to open their digital app, and speak out a command like, “Send $500 to my mother”.
The digital banking app can recognize the voice and execute the transaction. Of course, the banking app will need to know in advance which bank account is the mother’s.
Augmented and Virtual Reality
Augmented and Virtual Reality (AR/VR) technologies will play a crucial role in the digital banking arena. With users able to visualize the services, it will create a completely new level of interaction.
Digital banks can use AR and VR to create a physical looking ledger where users will be able to see their bank account details, including statements, turn the pages to go back and forward to see all transactions, point towards a picture of their contacts to transfer money etc.
CSRs, both AI and human, can be represented through an avatar to make users feel like they are actually in a booth or a bank branch talking to someone.
Of course, none of this will be possible without a supportive internet that can transfer data fast. Speed is of the essence in the modern digital world and the banking sector is no exception. People have become accustomed to instant services and in the fast-paced world, are demanding even more quick responses.
With 5G breaking wireless data transmission records, account holders will be able to use services like AR, VR, voice assistance and much more immediately.