What is the Impact of Digital Transformation in the Banking Sector?

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What is the Impact of Digital Transformation in the Banking Sector?

CFO Tech Outlook | Thursday, August 27, 2020

Fintech companies have taken advantage of digital transformation to fuel the progress in banking and concentrate on the customer.

Fremont, CA: With millennials becoming the largest generation in terms of the makeup of the workforce and the weight of their consumer value, by the end of 2020, nearly half of the global workforce will be millennials. Due to which the expectations for how services such as banking should function has changed drastically. Being in the digital era and entering adulthood together with the smartphone's dawn, this group has started to expect real-time access to information and a slick digital experience.

Top 10 Financial Control and Automation Solution Companies 2019No one of any age group enjoys filling out papers forms, standing in a queue or trudging to a distant bank branch in the rain, the digital natives will not abide by it. Similarly, as Generation Z are now entering adulthood, a failure to meet these new digital demands comes at legacy enterprises' peril. The challenger banks have swiftly understood the current demands and responded to this shift.

Taking and experience-first approach, these innovators have developed apps that cut the busy-work out of banking. Concentrating on simplifying the experience of everyday tasks such as splitting a meal with friends, checking the bank balance, or counting up the month's bill, for instance, has resulted in skyrocketing the user growth and fundamental changes in the way banking functions.

Recognizing the needs of the new generation and the unheard wishes of the customers of the traditional banks that came before, sounds simple, but this was just the first step. Responding to them demanded the ability to adapt and align rapidly; therefore, fintechs need a fundamental change in workplace functions.

Formulating an agile work environment has always been the core to fintechs ability to innovate. With more than 1.3 million customers, banks rely on channel-based communication, rather than email, to connect the key teams and coordinate its responses like outages. Scurrying can hit a few bumps in the road and coordinate rapidly via channels to respond to any issue quickly.

See Also: Top Digital Transformation Solution Companies

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