Banking 1.0 vs. Digital Banking 4.0

Online banking or Banking 1.0 is a service provided by your bank that allows the bank’s customers to carry out basic banking transactions over the internet—users log in through the banks’ website. Simply put, mobile banking is online banking carried out on a mobile device.

Most banks are still in the world of Banking 1.0 and have not realized the benefits of Digital Banking through an App.

Digital banking is the provision of every service that a bank has to offer through a purpose-built application. This application replaces the traditional transactional banking and customer interaction with a full automated front-end and back-end digital banking relationship and service.

Online banking applications got their start when banks with physical locations wanted to provide customers with an easier way to view their account balances, transactions and enable essential teller services. Features included viewing account balances, cash transfer, bill payment, setting up direct debits or automatic payments, and managing their credit and debit cards.

Twenty years later, and what has changed?

With banks closing branches and reducing face-to-face interaction with customers, these applications don’t provide the level of service required by their digital customer base.

Opening an account or applying for a loan becomes a frustrating process. The bank’s customers often spend days filling out forms to provide “know your customer” or a statement of their financial position. Why in this digital world are customers still being asked to complete forms and return them to the contact center, and then wait to hear whether they are successful or not. With Digital Banking Apps now being deployed, form filling is a thing of the past.

Banks are finally beginning to listen to their customers rather than providing them with a useless mobile banking application. They are upgrading globally to Digital Banking.

For those banks striving to be digital, you must have a plan to retire mobile banking. Realize your customers are digital and value features such as eKYC, Artificial Intelligence, and Data Intelligence. These core features enable you to offer a banking application with a rich suite of features allowing customers to maintain their relationship with your bank and enabling the bank to remain relevant in the Banking 4.0 world.

Youtap delivers a feature-rich omnichannel digital banking solution with a smart front-end App and a powerful back-end platform.

Is your organisation ready to embrace Digital Banking 4.0?

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