Digital Banking in 2020
USA Number of digital banking users in the United States from 2014 to 2019
161.6 million a twenty percent increase from 2014.

Source – Statista
Great Britain Online banking in Great Britain from 2007 to 2019 73% of users avail online banking
In 2007 – 30%, 2014 – 53% and in 2019 it is 73%

Source – Statista
UAE 90 percent of people in the UAE use digital banking, while the number of ATM users reached 100 percent.
Source – Federal Competitiveness and Statistics Authority
Nordic countries including Norway, Denmark, Finland and Sweden
As of 2018 had online banking penetration rates of over 80 percent.

Source – Statista
India As of 2017, India had 45 million active urban online banking users And it is expected to reach 150 million in 2020

Source – Report by Facebook and The Boston Consulting Group (BCG)

With such massive growth across the globe, what is in store for Banking technology, Banks, Fintech in 2020? Let us explore who could be their allies this year that can boost its growth manifold.

Innovation with Guards

While shopping, payments, funds transfer or buying nay financial product is at your fingertips, it has also raised cases of fraud and hacking. So, to keep the money safe on internet many regulatory bodies and governments across the globe have come up with initiatives to provide fintech start-ups an environment with a framework that is guarded and under radar by the authorities to keep an eye on illegal activities.

  1. In India, RBI or Reserve Bank of India has launched a framework for start-ups to test their services in a controlled environment.
  2. In Singapore to promote innovation, the FinTech Regulatory Sandbox allows players to simulate and experiment their products and services in a regulatory sandbox
  3. On similar lines is South Korea’s Financial Services Commission that inducted 60 firms under their sandbox framework
  4. In the UK, the regulators collaborated with the Global Financial Innovation Network (GFIN), a global FinTech sandbox to offer a safe and more inclusive environment for innovation.
  5. The Payment Service Directive [PSD2] came into picture to help Banks and Fintech in providing innovative banking service to its customers without the risk of data loss or unauthentic access.

Location-based Banking

Location-based notifications and marketing tactics have been in the industry for a long time. While the tech firms adopted it to offer customized services, the customer hugged the personalization touch and yearn for more. Fintech firms and Banks could combine the Banking with location to offer services that cater to a person’s need. Just for example – if your customer is traveling within a country a notification or a message mentioning nearby ATMs or restaurant partners that can offer a discount on your debit and credit card could help him.

If a person is traveling abroad, even the forex rates and nearby partners that can help in providing food deals and sightseeing could be added bonus.

Location-based banking can also help you in detecting fraud, in case a phone is stolen or the person has logged in from a different location, you can notify him immediately about the login and action can be taken.

  1. Capital One used location-based data and analytics to deliver personalized offers with its channel partners.
  2. Yes, Bank surprised its customers with location-based offers.

Paywear

Gold, Platinum or Diamond may be the costliest wearables, but if you want your customers to combine technology and trend Paywear is the thing.

Fashionable, convenient and most importantly allows you to pay and in case its stolen, your customer can track it or even wipe its data remotely that not be a possibility with gold and diamond jewellery.

Watches, wristband or rings can all be crafted with technology to pay at any merchant site. Some of the recent launches by the bank are –

  1. Heritage Bank’s wearable wrist band HOVA
  1. Bankwest’s payment ring HALO

What are your plans for empowering Digital banking and payments in 2020? Do let us know in comments or if you are keen on exploring Digital Banking or Digital Wallet solutions we are just a call away.

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