Digital banking is a part of the financial services niche that embraces functionality and services that traditional banking was providing in previous decades. However, many traditional banks are going into digitalization of their processes, adding digital banking to their more old-school financial services. Either mixed or solemnly digital (as at neobanks) approach expands banks’ business capabilities and clients’ acquisition. With digital banking software, customers access their banking accounts and do the operations via mobile, desktop, or cross-platform sessions.
The digital banking approach in financial services allows outstanding approaches to client service, client management, and analysis. Digital banking of the neobank allows us to guarantee 24/7 cross-platform access for the client to his/her account, operations, and services. Mobile applications with intuitive UX/UI design leave little questions to the support team or branch offices. Banking core collects data about your clients’ activities and structures this data into real-time reports. In traditional banking, you struggle to define a certain cohort of the clients, their activities, and revenues. On the other hand, neobanks offer precise insights and the pilot view of the audience you work with.
It is hard to understand what digital banking is without looking into its functionality. Go to SDK.finance to learn more about neobanking products.
Digital banking is the transition of all banking operations and services online. Digital banking provides services such as: creating a bank account, transfers, and withdrawals. The transition to the online space allows you to save money on opening bank branches. Most tasks are automated. You no longer need to store all customer data in the office. The system must work 24/7 to satisfy the clients’ needs and provide uninterrupted access to functions.
Clients access bank accounts from mobile devices and computers. Customers no longer need to waste time going to the bank. Digital banking removes the work with papers for the client. Users only need to upload a photo of their documents to get full access to the functions.
The functionality of the app depends only on your choice of suitable business solutions. Because the product is flexible, you can adapt to changing clients’ requirements. This allows you to improve the application, add new functions, and change the design of the app.
You need to ensure the maximum security of your users’ accounts. You can add such functions as Touch ID, Face ID, and push notifications. Customers will be notified when suspicious activity occurs. The system is designed so that your employees will quickly notice any suspicious activity and will be able to block any transaction. Your team will be able to unblock the transaction or operation if it was an error.
Digital banking is not only a platform for providing services to clients but also a workplace for your team. You can create roles for your employees and change their permissions. This will further protect customers from third-party intrusion. The fees and limits settings will allow you to set a value for these parameters, giving you the ability to control the cost. This will increase your ability to quickly adapt to the market.
Learn more about what is the meaning of the digital banking in SDK.finance blog.
The idea is what allows you to open a digital bank. The digitalization of banks has led to the emergence of many digital banks in the online space. It has become more difficult for companies to attract new customers. Clients no longer need the same banking services that every bank has.
Make a digital bank different. The main task for companies is to find what will make their digital bank different. For example, you can create a product that will target elderly clients. You will need to make an app with a clear interface, with large letters and a small amount of functionality. This will make your product more unique. You can add discounts and bonuses for relatives of these customers to attract new clients to your app.
Test it for viability. You can use the MVP method. A minimal viable product is a test version of a platform, application, or service with a minimum set of functions that brings value to the end-user. This technique allows you to check whether it is worth developing a digital bank further, what changes should be made to the development strategy, and what should be left in its original form.
Get regulatory approval. Your digital bank should remain within the specific rules of each country. Your company needs to keep up with changing requirements. This will allow you to avoid risks and penalties.
Choose a developer company. Creating software is a costly and time-consuming decision. The developer company offers you a ready-made solution to this problem. The software will be made by programmers who already have experience. You will not need to spend your nerves on correcting mistakes.
Prepare your platform. You should integrate new features into the app, transfer the system to the servers and prepare the product for launch. Your team should fix bugs related to integrating features. At this stage, the digital bank is being finalized to a fully viable state.
Launch the product. When you have fully prepared the platform, you can start it. You should improve the application and adapt it to the changing needs of the client. This will help you find new clients.
SDK.finance develops software. Find out what functions our digital banking software has.
A digital banking platform is a complex software solution that gives your clients access to banking services. Simply put, those are the means of interactions that provide money transmission, loans, and account management for the clients. The same platform gives you instruments to analyze the client’s audience, banking operations, and overall system performance.
A digital banking platform is a solution both for your neobanks’ clients and your teams. It embraces most of the functionality of the traditional bank. Neobanks, as well as traditional banks, predominantly have long-life circles. So, the software architecture of the digital banking platform you open your bank with should effectively last for 5-8 years with a certain potential for development and updates.
The modern digital banking product has a modular structure. This approach helps the dev team to scale the product up and wide. They can update, replace or double the functional module of the system without reworking all the architecture. Functional modules cover specific work within the ecosystem: money remittance, transactions processing, accounts creation & management, support center, and back-office.
Look into what is digital banking platform in our neobank software demo.
Improving the customer experience is the main focus of digital banking. Customers in digital banking require a smooth cross-platform service and 24/7 banking availability.
You can improve digital banking from the moment you acquire the client and onboard him/her. The onboarding experience for a client starts with the registration of an account. This is a critical point where you have to adjust the application form and KYC section to minimize the churn rate.
Sometimes digital banking requires you not to add new functions, but rather to get rid of the services that your audience does not like. It will be difficult for users to choose from a huge number of identical services with small differences. Users perceive ads in applications better than ads in bank branches. Customers are more willing to use new in-app services because they don’t find them intrusive.
Customers value the security of their data very much. Your development team may add Touch-ID and Face-ID to your application. Adding a push notification feature will provide additional control over funds for clients. In case of any suspicious activity, the client will receive a notification.
Improve your understanding of the clients and their interactions with the product. You may get more information about the services that clients prefer by adding analytics to your digital banking platform. SDK.finance also creates build-in questioning functionality. So, you can profile the clients into certain cohorts.
What functionality can improve digital banking for your clients? Learn more about our banking core.