Recently, a study estimated that almost 2.5 billion population lack access to adequate financial resources. The financial industry is increasingly implementing mobile-driven solutions to increase its market share by catering to this particular clientele. However, ATMs and bank branches are often found in cities, failing to reach those who need more banking in rural areas. This is a significant obstacle since it usually necessitates the completion of KYC procedures in order to obtain financial services.
Future-focused banks ought to establish a “bionically” operating system where artificial intelligence complements and elevates human-customer interactions. Bionic banks use analytics and data to meet a wide range of consumer needs that go beyond those of regular banks. They also need to understand that their organization needs to be as flexible as possible in order to keep up with their tech-driven competitors if they want to leverage the analysis, speed, and efficiency offered by this AI-led strategy.
What Is Replacing Traditional Banking And Why?
In 2023, the financial sector is undergoing a profound transformation, shifting from traditional banking to agency banking, driven by the need for broader development and the power of technology. Traditional banking had long relied on an extensive network of brick-and-mortar branches, which often left underserved communities and remote areas without access to essential financial services.
The digital age had ushered in new possibilities, and technology is becoming the cornerstone of this transition. Agency banking leveraged this digital revolution to reach previously untapped markets. With the integration of mobile banking apps and secure, cost-effective digital infrastructure, financial institutions could now extend their reach far beyond their physical branches.
Reasons To Switch To Digital Transformation For The Banks:-
- Cost reduction and efficiency
Commonly manual, paper-based, and time-consuming are traditional banking procedures. Banks can achieve greater operational efficiency and lower costs by automating repetitive processes, optimizing workflows, and getting rid of paperwork through the use of digital technology for digital transformation in banking. Processes like loan origination, payment processing, and customer onboarding can all be made more efficient through digital transformation in banking, which leads to shorter turnaround time and costs.
- Contactless banking
The need for remote and contactless banking services was brought to light during COVID-19 epidemic. Merchants no longer need to visit physical branches since digital transformation enables banks to provide e-KYC account opening, remote authentication, and virtual service. It is possible to include contactless payment methods, such as digital payment platforms and mobile wallets, with banking services to give clients convenience and safety.
- Financial inclusion
Through reaching underserved communities that might not have access to traditional banking services, digital transformation has the potential to enhance financial inclusion. Banks can give people in rural or underdeveloped areas access to basic financial services, including savings accounts, microloans, and payments using digital platforms and mobile banking. Inclusion like this fosters economic expansion lessens inequality, and increases bank clientele.
Top 3 Trends Reshaping Customer Experience In Banking For 2023?
- Branchless operation
In 2023, digital banks, including agency banking solutions, are dominating the financial landscape due to their adaptability and cost-efficiency. Branchless operations align with the modern consumer’s preference for convenience and accessibility. iServeU stands out as the ideal choice, offering comprehensive financial inclusion solutions under one roof. Its varied services cater to diverse needs, from E-KYC verification to fund transfer, fostering financial access for underserved populations. With a focus on innovation and personalized services, iServeU exemplifies the future of banking solutions.
- Easy onboarding
A positive impression is crucial for a satisfying customer experience, and for most banking clients, that impression happens during onboarding. Typically, the onboarding process for new customers entails filling out and signing piles of paperwork, which puts an administrative strain on onboarding staff.
With iServeU Banks and corporates can make it simple for their clients to submit necessary onboarding information from the comfort of their homes by streamlining the onboarding process through E-KYC and biometric authentication, which reduces manual labor and paper-based procedure.
- Personalised platform
In 2023, financial institutions, particularly neobanks, will prioritize hyper-personalization over standard personalization. Personalization goes beyond targeting customer segments and delves into individualized experiences. By utilizing predictive analytics, AI, and machine learning to monitor real-time usage data, monitoring engagement and content preferences, banks can tailor specific offers. For example, a customer’s frequent searches may prompt a recommendation for a low-interest home loan. Additionally, services like iServeU offer comprehensive custom portals to address all aspects of financial inclusion, enhancing the hyper-personalized approach. This trend marks a significant shift toward meeting individual customer needs and preferences.
Traditional banking vs agency banking
How Is Iserveu Playing The Role Of A Key Player In The Industry?
iServeU, as a leading fintech company, has taken agency banking to the next level and has become our flagship product that is designed to meet the unique needs of businesses.
iServeU Bridging The Gap Being A Baas Provider
BaaS is an end-to-end strategy that makes it possible to use APIs to communicate with a bank’s system. This promotes open banking services and assists companies in constructing cutting-edge financial services on the regulated infrastructure of the provider bank.
We provide a range of business needs, such as
- E- KYC
- Switching Solution
- Advanced Recon Engine
- Loan Management System
- Currency Conversion,
- Card Issuance
- Micro Atm Services
- Pay-In And Pay-Out.
This considerably lowers the expenses and complexity involved in providing financial services and products to the user. Not only this, we provide a complete platform or user portal with customization offering to the corporates and banks so that they can involve an easy automated banking service in their businesses.
In the dynamic financial landscape of 2023, the call for advanced technology, enhanced efficiency, and reduced time consumption has never been more imperative. iServeU, a trailblazing Banking-as-a-Service platform, is poised to meet this need head-on. Through its sophisticated digital tools and a well-structured three-tier hierarchy that includes agents, CBCs, and traditional banks, iServeU optimizes financial transactions, delivering swift, accessible, and efficient banking services. For businesses aiming to thrive in this fast-evolving landscape, iServeU is not just a choice; it’s a necessity. Make the switch to iServeU and embrace a future of streamlined, tech-driven banking.