Embracing Digital Transformation: How Smartphones and AI are Revolutionizing Banking

With the rise of smartphones and the app economy, coupled with the COVID-19 pandemic, an increasing number of people are choosing to conduct their financial transactions online. The change is also making it possible for banks to collect more data, which leads to better, data-driven insights and increased efficiency in credit risk management and customer acquisition. Banking institutions must understand, nevertheless, that digital banking offers more options than only online and mobile banking. Their customer base is larger, and they can accomplish more with the aid of a digital banking platform.

Personalization made possible by the omnichannel features of the Digital Banking Platform, which assist banks in facilitating customized conversations across many channels, including voice, web, and mobile, is one such factor encouraging the adoption of the platform. Building and maintaining connections with customers requires banks to provide the appropriate product at the right time to meet their unique needs. A complex and sophisticated DBP can meet the demands of the bank as well as the consumer by integrating with a range of financial services.

Because of this, a number of banks and other financial organizations are collaborating with financial technology companies to take advantage of blockchain, RPA, and AI/ML capabilities and obtain a competitive edge by reducing operational overheads. Blockchain technology and digital banking platforms supported by AI/ML are empowering businesses to build customer journeys with ease and allowing banks to use identity verification methods. RPA is used by Digital Banking Platform to optimize end-to-end processes, remove labor-intensive tasks, and enhance customer experience.

As a result, banks and financial institutions will be able to provide individualized services, attain the highest STP rates, and promote increased marketing. Banks are continuously investing in technology and working with RegTechs in addition to collaborating with financial technology providers. This is done to maintain regulatory compliance and reporting, identify fraudulent transactions, and fight identity theft.

The impact of digital technology on banks' operations is another factor to take into account as it has the potential to save a significant amount of money. Financial institutions will keep investing in cutting-edge CX technologies and digitizing their business models in light of these shifting priorities. Digital Banking Platforms, however, will always be a crucial component of a company's client interaction plan.

"A platform that digitizes banking operations that includes digital onboarding and lending, deposits, withdrawals, transaction management, wealth management, deposits, and fund management," according to Quadrant Knowledge Solutions, is a digital banking platform that enables banks to offer customers a seamless and cohesive banking experience that is intuitive across all digital touchpoints, including mobile, online, kiosks, wearables, and ATMs. Financial institutions can use the platform as a framework to take complete control of their digital strategy, make changes, and streamline some parts of their banking processes across all platforms and devices. Customers can also simply manage their accounts, make transfers, and keep an eye on their financial situation in real time thanks to the site. In addition, the platform makes use of predictive analytics and AI/ML to promote tailored client interaction across many digital touchpoints.

Banks are using IoT devices to get context-aware results so they can provide customized pricing and suggestions and enhance the client experience. Banks are able to provide personal financial management services and facilitate payment execution through smart wearables by using data obtained from customer-owned IoT devices. The usage of AI-based chatbots to help consumers with banking operations and question resolution is another trend. Customers can use these chatbots to assist with routine banking tasks including paying bills, transferring money, monitoring their financial situation, changing their passwords, and applying for loans. Finally, the integration of AI, ML, and big data analytics will facilitate the development of a highly customized customer experience, enabling banks to provide pertinent financial services while concurrently enhancing customer engagement and loyalty, augmenting revenue, and stimulating cross-selling.

Key questions this study will answer:

What is the current state of competition in the Digital Banking Platform market?

What is the market share held by major vendors in the market?

What are the key competitive dynamics in the global and regional markets for Digital Banking Platform?

Who are the leading vendors in the global and regional markets?

How do different vendors compare in terms of their offerings of cloud-based versus on-premises solutions?

What competitive factors impact the market positioning of different vendors?

What are the relative strengths and challenges of the vendors operating in this market?

How do different vendors position themselves competitively across customer segments, from SMBs to large enterprises?

Vendors covered in this study:

Backbase, Bottomline Technologies, BPC, Coconet, Codebase Technologies, CR2, Data Center Inc, Edgeverve, Finastra, Fisa Group, Fiserv, Intellect Design Arena, Kiya.ai, Mambu, Oracle, Sandstone Technology, Sopra Banking Software, Tagit, TCS, Temenos, Thought Machine, Ultradata, and Veritran.