Since the outbreak of COVID-19, digital platforms have gained huge traction among users, as going out was not an option. Although digital platforms have existed before that too, the necessity and need for them have never felt this strong. However, digital banking platforms have eased the lives of users and banking personnel as well. Digital platforms have been gaining a lot of traction lately, not only because of the rise in demand for them but also to provide the users with an exceptional experience and increase their adoption of cloud-based solutions by most financial institutions.
Financial institutions are becoming customer-centric now and switching entirely to digital banking platforms is one of the major trends coming out. It also enables the FIs to build up trust among customers, improving their loyalty towards them.
In a report, FinTech Outlook stated, based on their analysis, “57% of banks are already running in hybrid mode (both digital and traditional platforms), while 31% have been planning to run in hybrid mode in the coming 12 months, and the remaining 9% have reported that they will transform in the coming 24 months.” For this complete transformation to digital mode, the concept of Neobanks is rising, which is altogether a different aspect to discuss, but for the time being, digital banking platforms are the priority.
A digital banking platform (DBP) enables a bank to initiate the process of transforming the entire banking system to digital, which is an ecosystem-centric system. It also enables the banks to optimize their business. However, that is not the only goal. But for banks seeking only business optimization as their goal, a digital banking multichannel solution would be their best choice to meet their needs.
DBP has also encouraged cross-institutional services by connecting its servers to other financial institutions to provide customers with digital banking services. Digital banking platforms run on automation, APIs, and web-based services. The increase in digital banking platforms has eased people’s lifestyles by providing them with a channel to carry out their banking transactions online, with 24*7 availability of all banking services.
Some features of digital marketing platforms include Mobile Apps, Digital Wallets, Checking and Savings Accounts, Remote deposits, Deposit Insurance, Virtual Cards, Card-less Payments, Free ATM transactions with participating branches, and Person-to-Person Payments.
This availability of digital banking platforms came as a revolution for the entire banking industry and is now the most preferred mode of banking among customers. The concept of neobanks will be the most anticipated adaptation for the banking industry in the coming years. And with every other process going online, switching to digital banking was a need of the hour, which has been fulfilled by various organizations providing the same.