The future of Banking

Blockchain has been around for several years but it will be an even more dominant force in the future. Blockchain is set to change the payments system as we know it. Forecasts show that digital payments volumes will continue to grow exponentially thanks to payments apps, direct corporate payments and the Internet of Things. As the payments infrastructure changes facilitating the increased volume the fee margins will drop. The need for intermediates will be reduced bringing costs down and increasing international access.

Customization of digital banking is already an everyday part of life; banks can offer clients a digital platform where back office, analytics and Cloud can be accessed through APIs at any time from across the globe. The customization can be provided for any stage of the digital banking process from the user interface to a tailor-made fee structure. Clients expect a portfolio of customized solutions for their specific situation.

Data Gathering and Analytics are providing banks with insights into what the clients need and want. With an increase in the volume of gathered data, bigdata analytics and market intelligence financial institutions help their clients determine their marketing strategy and make more-informed business decisions. To remain relevant in the future banks will need to know much more than the consumer’s financial situation. Businesses are willing to pay for this unique banking service to increase their turnover and accurately target their marketing campaigns.

eMoney  – Electronic Money Institution (EMI)account is a virtual account that holds electronic currencies with real money value. This is one of the hottest fintech businesses in recent years as it allows to financial companies to operate kind of banking services without been a bank. EMIs operate under financial regulation in Europe.

Mobile Banking will eventually be adopted as a platform for all banks across the globe. Mobile banking is perhaps the most prominent trend in banking today and one which there is no doubt will be around for a long time. Banks will need to remain fiercely competitive in the mobile banking market in order to keep up with ever-changing mobile banking technology and customers’ needs. Today it is accepted that even the largest brick-and-mortar banks can no longer ignore that mobile banking is the future.

Innovative New Banking Regulations are developing with the need to regulate evolving banking technology the banking world has become accustomed to like KYC, PSD2, FACTA, AML etc. New regulations will continue to rise to meet the challenge of new banking issues. New regulations will force banks to improve or completely change their software to meet regulations, the customers’ growing needs and digital advances.

Read more to know how does online banking software work?

 Third Party Providers are on the increase. PSD2 (Revised Payment Service Directive) is set to become a game-changer in the banking industry. With PSD2 personal business  bank account holders will be able to use a third-party provider to manage their finances. This will introduce a range of new competitors to the banking industry. With PSD2 financial services can not only be provided by banks but will be open to a wider playing field including Fintech companies and bigtech.

Cyber Security is becoming a pressing issue; with more and more banking being made remotely across the globe. Although cybersecurity is already in place with strict standards of cyber defense and protocols banks are still vulnerable to cybercrime. The perpetrators are adapting as fast as cyber defenses are being developed and the need for comprehensive cybersecurity systems is increasingly vital. Rapidly developing banking technology has made Cyber Risk Management necessary.