Very few economic sectors were left unscathed during the coronavirus pandemic of 2020, and digital banking was one of them. If anything, the use of digital banking platforms, electronic payments, and mobile alternatives to traditional banking experienced a upsurge during the worst months of the pandemic. Financial technology as a whole was barely impacted in 2020, and this was pretty much what market analysts expected.
Now that we have welcomed the year 2021 with very positive hopes about the near future, this is a good time to discuss what we may see happening in the digital banking segment over the next few months.
Digital Banking: Not Just for Millennials Anymore
The social distancing measures and lockdown restrictions of the pandemic resulted in elderly individuals flocking to digital banking channels; they figured out that this was the best time to become acquainted with internet and mobile banking, and we can safely assume that many of them will continue to use these platforms even after vaccination campaigns multiply. The idea of standing in line to cash checks at a branch is no longer appealing to most of the population. The ability to convert Bitcoin to cash has become more accessible to those that do not have too many technical skills.
RegTech is the New FinTech
Can banking and financial regulations benefit from emerging technologies? Absolutely. When you consider the complexity of blockchains supporting cryptocurrencies such as Bitcoin and Ethereum, we can see that regulation and compliance are conducive to being implemented by means of technology. When we check out an institutional profile on iBanknet, for example, we only become aware of a system we can use to gather information on American banks; coders and developers, however, see an application programming interface that can be used to augment existing systems. Compliance can be automated; if you think about it, RegTech can help individuals open international bank accounts right from their smartphones as long as they are guided through the Know Your Customer and compliance steps.
More Personalized Financial Advice
There was a time when personal financial planners mostly catered to high net-worth clients because they thought that dealing with non-wealthy clients was too much of a hassle. Modern financial platforms do not discriminate in this manner; technology makes it easier to service clients from all socioeconomic levels, and financial institutions are now seeking strength in numbers. The key is in the calculation and management tools that personal financial planners work with; since these tools are now more advanced, planners can pursue more diverse leads. At the same time, it is easier for banks to incorporate online financial planning tools such as retirement calculators, compound interest forecasting, budget worksheets, and others.
Greater Outreach to Commercial Clients
Digital banking started off with online access to personal accounts in the late 1990sm and it has advanced considerably ever since. In the meantime, commercial banking clients have also enjoyed many of the perks of digital accounts, but they still lag behind a bit when compared to the personal segment. We can expect this to change in 2021 because of the greater entrepreneurial spirit among younger Americans, who will in turn demand better digital banking services.