Banking services play an essential role in human society. Today, we cannot imagine financial planning without interacting with any bank commissioned service. For the majority of the population, banks have taken up the responsibility of being a financial advisor, savings solution provider, and financial risk manager. For the government too, it would become nearly impossible to mobilise the money generated from public economic activity to industrial and social development without the active participation of banks. At the turn of the current millennium, when banks started embracing digital technology to ease their operations, both the government and the population lent their support.
Today, it would not be too much of an exaggeration to say that the banking industry is one of the most digitally transformed sectors in the market. The transformation of banks has made banking operations clean, lean, and fast. As a result, banks can efficiently serve their customers. However, if you want to gauge how transforming banks digitally has helped them up their game in the market, here are a few points you should note.
1. Open banking technology
Open banking technology, which gave birth to the mechanism of UPI, can be considered as the most revolutionary outcome of banking digital transformation. Due to this technology, customers can transfer money from one bank account to another across branches and banks at a global level with the help of a common platform. Customers find it extremely convenient. The centralization of banking information also helps in saving a lot of paperwork for both the banks involved in any particular transaction. So, banks can save a lot of resources per transaction, enabling them to focus on other areas.
2. Customer profiling
Due to the digital transformation of banking services, every customer involved with a bank has a customer profile. Now, using analytics, banks can monitor these profiles to note the volume and frequency of transactions done by a customer. It helps the banks graph the financial habits and behaviour of each customer. Consequently, banks can promote their services to targeted sets of customers with the help of personalized advertising. The right service is advertised to the right customer at the right time due to the information gathered over time.
3. Continuous service
The digital transformation of banks has allowed financial service providers of our society to work around the clock. With the ongoing improvement in the domain of artificial intelligence, banking services are expected to become more prompt and personal in the coming years.