The Covid-19 pandemic has accelerated the digitization of the banking sector. This year, digital has been established as a mainstay and primary way of business for all small and big banks. While pandemic has caused much pain and grief but for banking it has accelerated the growth on the path of ways of banking.
The year 2021 will witness Hybrid Banking become more mainstream. In a hybrid banking model, financial institutions combine the brick and mortar physical banking approach with virtual banking. The banks should be using the technology and digital for creating Integrated Banking with a Human Touch.
While the regulations like Video Banking and widespread adoption of digital opens ways of expansion, banks will have to strive for retention of customers and convert this expansion and growth to bottom line. Banks need to move in the direction where banking moves into the lives of people and not the other way that people have to come to the banks for transactions.
Banking needs to integrate and become part of what people do in everyday life and there needs to be a bond between the customer and the bank and that will come from human touch which needs to be embedded in digital.
Financial services will see many specialized players integrating to create world class banking services. Banks will partner with hi-tech specialized players for both backward and forward integration.
Backward integration players will help create best possible products and forward integration players will create best possible experiences for the customers. This should lead to inclusive growth that is sustainable and comes with Human Touch.
Blockchain and Artificial Intelligence that have been in the discourse for years will play a major role in creating new age banking and will see rapid adoption for implementation for various use cases.
2020 has been a year that nobody expected. It forced businesses to learn and evolve. 2021 is the time to implement those learnings. Undoubtedly, it is going to be a path-breaking year, one we hope will set new milestones for the banking ecosystem.”
The author is co-founder & CEO of Decimal Technologies. Views are personal.