The relationship between customers and traditional banking in the very near future will have considerable changes. In this sense, financial entities reduce to the maximum the opening of new physical offices, on the contrary, they have opted to close some and give way to virtual offices, that is, to the digital age. However, digital banking still has a lot of scope for its expansion: technology updates, core banking projects, omnichannel solutions and the incorporation of digital systems in the backoffice areas were part of the proposals to be made in the current year. that go in favor of improving the user experience.

The digital revolution has represented a noticeable change in the attitude of users in the face of advances in that sense, the increasing pressure and demand from non-bank actors, oblige financial institutions to make a deeper change in their internal processes and that is why they lean towards digital banking. It is the reason why fundamental alternatives such as Open Banking arise, and that implementing it implies that banks must share information with third parties, and this would be of great help in the development of the APls that make life easier for their clients, this is what allows banking to grow. And these are the challenges that must be assumed immediately and this is to understand the necessary transformation of digitization of banking as a process that includes the entire system.

The challenges of digital banking

A series of digital banking challenges and opportunities need to be analyzed in order to understand them and thus be able to face them successfully. This is how the prospects are very positive and it is believed that progress will be made in the areas of profitability, regulatory change and the final transformation that already represents a practically obligatory and necessary step for the global financial system. Areas such as sports, communications, entertainment, just to mention a few, have had to adjust to the new digital trends, so that banking and the financial system in general, could not be the exception.

Digital transformation advances in the financial sector

The advances of the digital transformation of banking point towards a primary objective: the use of information technologies. The result is the use of alternatives such as FinTech, Open Source and even Blockchain. At the level of the financial system, Open Banking has a large field thanks to the application of APls.

With Open Banking the tendency of the entire financial system is the automation of its services, which has generated unknowns, because it is indisputable that it is the solution to survive the digitalization. The APIs (Applicattion Programming Interface) are interfaces that allow connecting, linking and synchronizing the database of a service with any application, that is, they are a kind of bridge that guarantees the traffic of the data in a safe and secure way. without the intervention of third parties, very useful when it comes to speeding up services for the final customer.

Harness the power of data

It means that until now the data managed by the banks have not been used efficiently. In the era of digital transformation this process must be taken into account and that is something that generates many expectations. When analyzing customer data, banks will better understand their needs and adapt services to their requirements, providing more personalized attention.

The analysis of the data: helps to avoid the frauds, to see the businesses that are more appropriate, to personalize the loyalty mechanisms of each client and to develop services or loans. Data mining is one of the aspects most used by companies of different products currently and that has given good results, even working, as the way to know the needs of the external people of the company, this is how strategies are developed of marketing.

What do you think about this topic? Do you know any other challenge of digital banking this year?

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