In a remarkably short space of time, digitalisation has revolutionised the world of banking. Nowadays, there’s nothing unusual about customers paying for items with the tap of an app, or checking their bank balance on their smartphone while on the move. Advanced technologies have transformed the way we bank, with remote, on-demand services becoming the new normal.

Mobile banking has fast become the go-to method for customers looking to review their spending, transfer money and make payments. By 2021, consulting firm Caci predicts mobile banking will overtake high street branch visits in the UK, with consumers increasingly opting for the convenience of banking through their portable devices. As our lives become more digitalised, customers have had their expectations defined by other industries – particularly online retail – and are now demanding the same round-the-clock service from their banks.

For younger generations – and digital natives in particular – convenient, highly personalised mobile services are expected to be the standard. To keep up with these evolving preferences, traditional banks must ensure they are successfully incorporating the latest technology into their operations, while also anticipating what the next digital trend might be. For those that manage to stay abreast of these rapid developments, digitalisation presents a number of exciting and potentially lucrative opportunities. On the other hand, those who fall behind risk losing ground to their more innovative competitors.

With new technology rewriting the rulebook for financial institutions across the globe, it’s clear that the banking industry is at a crucial moment in its history. Decisions made today will have a profound impact in the years to come, meaning banks cannot afford to make any digital missteps. The World Finance Digital Banking Awards 2019 celebrate the firms that are leading the way with their digital strategy, prioritising innovation and setting a path for future growth.

Time to act fast
We are now living in a smartphone-filled society. These devices are a fixture of modern life and have created an ‘always on’ culture where most of us have grown accustomed to 24/7 access to the internet. At the touch of a button, smartphone users have almost limitless access to a wealth of information, various forms of entertainment, social networking sites, online shopping channels and, perhaps most significantly, an unprecedented means of communication with businesses and brands.

With new technology rewriting the rulebook for financial institutions across the globe, it’s clear that the banking industry is at a crucial moment in its histor

As such, customers have grown to expect remote, round-the-clock customer care from their financial service providers. But rapid responses aren’t enough on their own – the entire customer service experience needs to be tailored to each customer as personalisation rises up the list of customer demands. The runaway success of fintech start-ups reflects this growing appetite for personalised services.

Traditional banks, meanwhile, have learned from the success of these tech-savvy start-ups and are now using advanced technology to improve their customer service. The most significant example of this is the widespread adoption of artificial intelligence (AI), which banks are using to deliver frictionless, 24/7 customer care. Research by IHS Markit shows that the business value of AI in banking was $41.1bn in 2018.

In the same year, PricewaterhouseCoopers found that 72 percent of business decision-makers believed AI would be the leading business advantage of the future. AI-powered chatbots allow banks to offer convenient, flexible customer support, available from any location and at any time, day or night. As these systems become increasingly sophisticated, they have the potential to replace traditional communications channels such as email, phone and text, especially among younger, more digitally literate consumers.

Chatbots aren’t the only way banks are strengthening their relationships with customers. The advent of biometric identification – such as iris scanning and fingerprint recognition – has allowed banks to offer clients an additional layer of security to their online interactions, responding to a growing demand for more personalised security measures. In an age when data protection and online security is a top priority for many, this enhanced feature helps put customers’ minds at rest.

Unlocking insights
Biometric identification and AI-powered chatbots are perhaps the two most noticeable ways that banks are employing new technology in their customer-facing operations. But behind the scenes, big data might be the most important tool available to financial service providers. Each day, banking customers generate vast amounts of data through credit card transactions, cashpoint withdrawals and other purchases and payments. Every customer has their own transaction footprint containing plenty of useful information about their spending and saving habits.

For banks, this data – if collected and analysed effectively – presents a number of exciting opportunities. By tracking spending patterns, banks can better understand their clients, creating detailed profiles for each customer. This enables banks to offer greater product personalisation, helping them to devise new products and services that are tailored to customers’ specific needs.

What’s more, the successful analysis of big data allows for improved fraud detection, as banks are able to use machine learning to pinpoint transactional behaviour that differs from customers’ regular banking habits. In 2018, 14.4 million people were victims of fraud, with out-of-pocket fraud costs reaching $1.7bn. As the threat of online fraud looms large for many digital banking customers, data-enhanced fraud detection is certainly an area worth investing in over the coming years.

In safe hands
The digital transformation of the banking industry has opened traditional financial service providers up to a wealth of opportunities, helping them boost efficiency while cutting costs. This significantly improves their customer service operations. However, the digital era also comes with its fair share of challenges, and banks must take care to protect themselves and their customers from the risks that accompany increased digitalisation.

According to a 2019 report by cyber intelligence firm IntSights, over 25 percent of all malware attacks in 2018 were targeted at banks and financial services organisations, making the finance industry the worst-hit professional sector. The study also recorded a 212 percent year-on-year increase in stolen credit card data and a 102 percent increase in malicious apps. To combat these aggressive attacks, banks of all sizes must prioritise investment in threat detection and online security. Failing to do so places institutions at risk of suffering a targeted attack, potentially resulting in regulatory fines, sky-high legal costs and irreparable reputational damage.

As we begin a new decade, it is remarkable to reflect on how technology has transformed the banking sector. Services that seemed impossible a few short years ago are now accepted as commonplace, and banks are only beginning to scratch the surface when it comes to advanced technologies. The sector is moving towards a dynamic future, and a handful of innovative institutions are leading the way. The World Finance Digital Banking Awards 2019 highlight those firms at the very forefront of this exciting digital drive.

World Finance Digital Banking Awards 2019

Best Mobile Apps

Andorra
MoraBanc App – MoraBanc

Angola
BFA App – Banco de Fomento Angola

Austria
George-App – Erste Bank

Botswana
SC Mobile Botswana – Standard Chartered Bank

Brazil
Airfox – Airfox

Cambodia
Sathapana Mobile – Sathapana Bank

China
HSBC Mobile Banking – HSBC

Costa Rica
Banca Móvil – BAC Credomatic

Côte d’Ivoire
SC Mobile (CDI) – Standard Chartered Bank

El Salvador
Banca Móvil – BAC Credomatic

Finland
Ferratum Mobile Bank – Ferratum Bank

France
BRED – BRED Bank

Germany
N26 – N26

Ghana
SC Mobile Ghana – Standard Chartered Bank

Greece
Winbank Mobile – Piraeus Bank

Guatemala
Banca Móvil – BAC Credomatic

Honduras
Banca Móvil – BAC Credomatic

Hungary
MKB Mobilalkalmazás – MKB Bank

Italy
Intesa Sanpaolo Mobile – Intesa Sanpaolo

Kenya
SC Mobile Kenya – Standard Chartered Bank

Lebanon
Cedrus Mobile Banking – Cedrus Bank

Mexico
BBVA Mexico – BBVA Mexico

Mozambique
Via Daki – BCI

Netherlands
Bunq – Bunq

Nicaragua
Banca Móvil – BAC Credomatic

Nigeria
Access Bank – Access Bank

Panama
Banca Móvil – BAC Credomatic

Philippines
UnionBank Online – Union Bank of the Philippines

Portugal
ActivoBank – ActivoBank

Singapore
Frank – OCBC Bank

Spain
Openbank – Openbank

Tanzania
SC Mobile Tanzania – Standard Chartered Bank

Turkey
Garanti BBVA Mobile – Garanti BBVA Bank

UAE
Snapp – Mashreq Bank

Uganda
SC Mobile Uganda – Standard Chartered Bank

UK
Monzo Bank – Monzo

Zambia
SC Mobile Zambia – Standard Chartered Bank

Zimbabwe
SC Mobile Zimbabwe – Standard Chartered Bank

 

Best Consumer Digital Banks

Andorra
MoraBanc

Angola
Banco de Fomento Angola

Austria
Erste Bank

Botswana
Standard Chartered Bank

Brazil
Airfox

Cambodia
Sathapana Bank

China
HSBC

Costa Rica
BAC Credomatic

Côte d’Ivoire
Standard Chartered Bank

El Salvador
BAC Credomatic

Finland
Ferratum Bank

France
BRED Bank

Germany
N26

Ghana
Standard Chartered Bank

Greece
Piraeus Bank

Guatemala
BAC Credomatic

Honduras
BAC Credomatic

Hungary
MKB Bank

Italy
Intesa Sanpaolo

Kenya
Standard Chartered Bank

Lebanon
MEAB Bank

Mexico
BBVA Mexico

Mozambique
BCI

Netherlands
Bunq

Nicaragua
BAC Credomatic

Nigeria
Access Bank

Panama
BAC Credomatic

Philippines
Union Bank of the Philippines

Portugal
ActivoBank

Singapore
OCBC Bank

Spain
Openbank

Tanzania
Standard Chartered Bank

Turkey
Garanti BBVA Bank

UAE
Mashreq Bank

Uganda
Standard Chartered Bank

UK
Monzo

Zambia
Standard Chartered Bank

Zimbabwe
Standard Chartered Bank

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