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Retail Business Review | Thursday, April 14, 2022
Technology has a paw in nearly every part of the banking sector, from retail and mobile banking to neo-bank startups. Moreover, the effect of technology will continue to compel banking into a digital future.
Fremont, CA: The digital age is developing how people connect and conduct business daily, and technological breakthroughs go on to shape the future of banking worldwide. With millennials and Gen Zers demanding a digital banking experience, the banking industry changes.
Technology has a paw in nearly every part of the banking sector, from retail and mobile banking to neo-bank startups. Moreover, the effect of technology will propel banking into a digital future.
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Retail Banking
Retail banking refers to banks' services to their customers, like savings and checking accounts, credit and debit cards, and loans. However, the enlarged desire of consumers to obtain financial services through digital channels has resulted in a flood of innovative banking technologies reimagining the whole retail banking business.
Technology intended to enhance retail banks' operating efficiency positively impacts the market. According to a recent survey, 39% of retail banking executives believe technology has the largest influence on cost reduction. However, only 24% believe it has the greatest impact on customer experience.
Retail banks are also building platforms in the Banking-as-a-Service (BaaS) area to remain competitive. For example, UK neobank Starling aid offers B2C retail banking services; however, after developing a BaaS platform, Starling assorted its product and revenue sources, allowing it to remain relevant in the neo-bank industry.
Online Banking
Mobile banking has obscured online banking in popularity, while the overall number of online customers has decreased globally. However, according to Business Insider Intelligence, mobile banking is increasing at five times the rate of online banking, and half of all online clients now aid mobile banking.
Despite this growing popularity, Numerous banks are still unable to hit the demand for mobile tasks like bill payment and incentive redemption, forcing them to redirect consumers to online banking. However, this drive will not be enough to popularize internet banking as millennials and Gen-Zers gravitate toward the mobile market.
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