3 trends in digital banking you need to be aware of

As 2021 comes to a close, the banking industry has succeeded in utilizing the pandemic as a source of expansion potential. The majority of local banks have increased pre-tax profits by 20% despite the unprecedented challenge posed by Covid-19, which is currently at its height. That’s wonderful news and demonstrates how digital transformation may protect banks from the current unstable and uncertain environment.

Let’s look at some of the most important trends in digital banking for 2022 in this post from SMARTOSC Fintech.

Focusing on Banking UX

Back then, banks treated user interface and user experience (UI/UX) as only a marketing element of their digital products rather than a crucial component that underpins all of the features and interactions that customers have with trends in digital banking. 

Fintech companies, a recent market threat, have altered all of that. Fintech encourages banks to rediscover the importance of an intelligently designed interface and user experience because of their user-centric and simple-but-not-simplistic product designs.

By 2022, all banks’ trends in digital banking must be UI/UX-driven and informed by three key themes.

• The bank’s promises are embodied in UI/UX: Beyond appealing logos and color schemes, banking UI/UX is important. The greatest banking UI/UX designs communicate with users in a distinctive voice and tone that conveys the identity of the bank. 

• Across the ecosystem, a consistent experience: Whether through in-branch, mobile apps, or ATMs, banks should be able to give the same brand experience to customers across all channels. 

• A customer-focused banking experience: It goes beyond only quick transaction processing in banking UI/UX. Delivering genuine involvement that is pertinent to people’s lives and interests must be the focus today. 

Embedded Finance will be everywhere

Embedded finance enables banks to advertise and offer their digital services, such as P2P Payment, Buy Now Pay Later, Digital Lending, or Financial management, directly within other non-financial platforms.

The e-commerce sites, ride-hailing apps, streaming services, or e-wallets that contemporary consumers cannot live without could be potential partners for embedded finance in trends in digital banking. 

A Banking-as-a-Service (BaaS) and Open Banking architecture supports embedded finance. Banks can now advertise their items on these well-liked platforms and investigate new cash streams at a low-cost thanks to embedded financing.

Open Banking will continue to expand

With the trends in digital banking, more and more banks are exposing their data and granting access to financial and transactional information. Banks may observe that more APIs are being developed and partnerships are being made throughout the BFSI landscape to improve the ecosystems of banks.

The majority of recent banking developments have been built on open banking. More developments in digital banking will emerge trends in digital banking in 2022 thanks to open banking. Forrester itself concurs. 

Open banking enables banks to provide greater value to their clients while obtaining a comprehensive understanding of their financial situation by integrating data from other partners.

The trends in digital banking for 2022 go beyond simply investing in new tools. They also aim to change how banks operate, how customers are treated, and even how their cultures are viewed in order to succeed in the increasingly digital world. For further information or if you have any questions, feel free to contact SMARTOSC Fintech.