How Is Digital Transformation Accelerating The Banking Industry?

1. How Is Digital Transformation Accelerating The Banking Industry?

2. The banking industry is undergoing massive disruption and digital transformation with the implementation of high-end technologies in the era of digitalization. According to banking industry expert this industry is driven by consumer’s demand for new products, customized services, and reduced costs services. • Banking Industry comprises of a network of financial institutions who are licensed to deliver banking services. Its functions are related to account opening, insurance, wealth management, fund transfer, loans, digital banking, and credit cards. • The adoption of digital transformation across the banking industry embraces them to enhance their customer service and reduce the probability of human error which drives customer loyalty. Digitalization across banking industry has benefitted their customers a lot in terms of online transaction convenience, video banking, internet banking, and core banking solutions. On behalf of banking expert network group this industry is facing various challenges in terms of retaining customers, cyber-attacks, and lack of financial knowledge amongst the consumers.

3. Digitalization in the banking industry started at any time when the banks began to computerize their transactions decades ago to adapt the different applications of technology and serve their customer’s needs. It will provide a more hassle-free and engaging customer experience. This industry is experiencing an increase in spending in terms of infrastructure, disruption, technological advancements, and banking reforms. • Digital transformation helps the banks to enhance their digital presence, acquisition of new customers becomes cheaper and more accessible for them, enhances their customer loyalty, helps them to deliver personalized offerings, and drives them to be innovative in the industry. • Digitalization has enabled the widespread adoption of smart devices, cloud computing, digital payments, data analytics, big data, Blockchain,banking analytics, artificial intelligence, and others. • According to Expert network, only 12 % of the banks across the globe are fully committed to digital transformation. The success of the banks in terms of digital transformation depends on their strategy, technologies, and operational efficiencies. • An estimation by a banking industry professional shows that the retail banks' ICT spending in digital banking is foreseen to reach a value of USD15.2 Bn by 2022.