When a division of a bank deals with retail type customers, it is said to be retail banking. When the customer is a corporate, it is said to be corporate banking. Retail banking is what is visible in the form of bank branches in almost all large and small cities. Retail banking is done through these branches.
In the corporate banking, banks directly deal with the customers, i.e, corporate firms. They provide them loans when needed, credits, open savings accounts and checking accounts. These are the accounts that are meant specifically for the use of the corporation rather than individual persons.
At the fundamental level, a digital disruption calls for change and adaptation. The companies that can evolve to accommodate digital disruptions caused by the rapid increase in technological solutions being made available in almost all industries and their aspects. Banking and finance is not exempted from this rule. This industry has seen massive effects of digital disruptions.
The banking industries and finance based corporations have to undergo constant metamorphosis to their foolproof business models to accommodate for digital disruptions. These will bring about changes in payment methods, lending and crediting, settlements as well as other aspects of the financing sector.
For effective transition, banking industries can partner with companies that provide financial technology solutions such as Nordic Drizit or develop they can formulate their own solutions in-house. We have listed some methods that are generally used.
FinTech or Financial Technology.
At its core, it is the meeting of finances and technology. This meeting or joint gives rise to innovative solutions as well as startups and businesses that specialise in them. This solution is currently dictating the making of the newest business models. The enhance customer experience through the following solutions.
- Convenient as well as real-time transaction information.
- Enabling mobile banking even for smaller transactions. This eliminates the requirement of visiting a branch in-person for small transactions.
- Technical solutions and means to give corporates the ability to provide finance-related advice to their customers and meet their demand.
Financial Technology has reported higher returns and is made popular I’ve traditional banking methods due to its ability to use high-level technology and completely focus its power on business.
Digital banking platforms such as mobile wallets, payment apps are the most famous means for engaging customers with the finance industry. To promote your industry on a global level through marketing, sales, better customer services or community engagement, social networking and developing digital platforms is the most essential step. This can be achieved through automated systems and software-based solutions. Digital banking can prove to be the step that keeps you way ahead of your competition.
Cryptocurrency is famous for its speed and low costs. Blockchain technology also allows financial institutions to exercise strict control on data and make smart transactions.
This tech has had its share of scepticism involving security and transitions. However, once implemented, they quickly see that it is in fact more effective and secure as well as cost-effective. Blockchain and cryptocurrency is estimated to create savings worth $27 billion by 2030 in settlement transactions.
Blockchain can be effectively used to detect any fraud, transfer between banks, provide effective ways of loan processing and can greatly help prevent money laundering
AI and Machine Learning
Chatbots are the most famous use of Artificial Intelligence. These are being used by almost all parts of the finance sectors. They are especially effective for greater customer services as they are made to resolve and respond to any kind of queries a customer might pose on online platforms.
Machine learning and cloud computing are used with Artificial Intelligence to provide solutions and meet the requirements of business needs in the financial sector.
The most pronounced benefit of Artificial Intelligence has reportedly been better customer services, faster delivery of products, betterment in risk management, bad greater compliance. Artificial Intelligence, machine learning and cloud computing are based on algorithms and numeric systems and they thus reduce errors in transactions and decisions on investments to almost zero.
To make better use of this ever-growing area of technology and keep up with the advancements, all finance and banking industries are advised to adopt digital solutions. As mentioned earlier, these solutions can be built in-house but your staff must have the experience in this industry. Developing such solutions comes with its own cost and time overheads. In case this solution does not work out as effectively as expected, that can mean a waste of resources.
It is better to partner up with companies and tech firms that specialise in providing financial technology solutions such as Nordic Drizit. Using the help of such firms can save you greatly from time and cost overheads and you will be guaranteed a solution tailored to your needs by professionals and the best in the industry.