Banks today need to transform themselves into truly digital banks, so to counter the rush of disruption and create a more profitable business model for 2018. For the purpose, we have identified top 5 trends that are reshaping the face of digital banking in 2018, to help banks and all other financial institutes to link to the Truly Digital theme that we believe will be the most influential in determining the future of banking organizations in 2018.
- GoodBye Banks
The frquency of physical banks has dropped considerably from 1995 to 2015 — to a great extent because of the ascent of on the online and mobile banking. At first glance, that may appear like uplifting news. With such huge numbers of clients going on the web (or on mobile) to do their banking, banks never again need to pay for physical space. However, the reality remains that numerous clients aren’t simply going on the web, they’re going somewhere else —finding mobile “financial wellness platforms” that permit them to budget, bank, pay, and crowd-fund, all without leaving the comfort of their homes. In other words, it is imperative to say that banks are no longer the game changer when it comes to financial management. There are many other entities that save, lend, and invest faster, easier, and cheaper than the former financial giants.
- Hello Blockchain
Blockchain may best be known as the innovation behind advanced monetary standards like Bitcoin. Be that as it may, the innovation holds substantially more guarantee than digital payments. Blockchain basically takes into consideration secure exchange of practically anything—be it cash, thoughts, copyrights, or royalty fees — while additionally wiping out the middle man once expected to handle and facilitate the transactions. Blockchain can be utilized to oversee ventures, land — actually practically anything of significant worth. What’s more, the best part is, it should all be possible for all intents and purposes, with limited security risk.
- New Rules and Experiences
I recollect the first occasion when I deposited a check from my mobile phone. The flexibility! Much to my dismay the amount of things I’d soon have the capacity to do. FinTech has an enormous advantage over conventional banking in that FinTech firms are not subject to a similar government regulations. All things considered, they have significantly more flexibility to create user experience that make clients’ lives less demanding. They aren’t simply dispensing with the need to store your paycheck or send in your home loan installment. They’re putting forth open doors for crowd-sourced investments, the opportunity to refinance or borrow — the opportunity to buy your home or auto, totally through telephone! In actuality, FinTech is enabling clients not simply to bank — but rather to totally reevaluate their financial prosperity. They’re urging them to be dynamic members in their financial lives.
- Eliminating the Need for Money
Affirm, perhaps not money, but rather physical cash. I recollect the first occasion when I went to Europe. My fanny pack was loaded with local currency. Furthermore, whatever I didn’t spend, I needed to trade — at a lower rate! — when I got back home. On account of bitcoin, that is not true anymore. Bitcoin is a type of simply computerized money, not upheld by any country or government. And keeping in mind that the secrecy that encompasses bitcoin may make a few organizations be careful about utilizing it, the reality remains that the digitized cash genie is authoritatively out of the container. Bitcoin has demonstrated that money no longer needs a government back to exist or work in the monetary world. That is tremendous as we consider the steps FinTech is now making in different regions of the financial services market.
- Enhanced Security
Many people started to reconsider the age-old idea of hiding their money under their mattress rather then in banks, after the financial collapse of 2007. Fast forward 10 years, and technology like blockchain has not just eliminated the need for banks in financial transactions, it’s made those transactions even safer than ever before.
The changes we’ve seen thus far are nothing compared to what the future holds, largely backed by blockchain’s potential and increasing consumer excitement and demand.