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The digital transformation of the banks

Posted by KingEclient on 20 October, 2017

The extension of the mobile and tablets use has popularized the digitalisation of a big number of services, among them, banking.

This is how digital banking and mobile banking arises, with an aim to ease to their customers all daily transactions and operations like verifying account balances, perform money transfers or payments. Moreover, another principal benefit of the digital banking is the time saving that it takes with it.

It is a big attraction that has boosted the fast acceptation of this service model is the possibility of immediate capital monitorization. The client only needs to access from his or her mobile phone to be able to check the status of its account from everywhere.

In fact, experts agree that this ‘permanent connectivity’ has been what has favoured this digital evolution from the finance and banking sector. Vint Cerf, vice president of Google, said in a recent interview with El Pais that “the following evolutive step in the total and permanent connection“.

Together with this necessity, the rise of financial services digitalization has driven at the same time into new methods of payment. Bitcoin crowns himself as the principal digital coin currently, and more than 12 million wallets are accounted for the moment.

In the Spanish market, we could highlight the electronic BBVA wallet. The bank entity explains that BBVA wallet allows not only to make payments with the mobile phone in selling points with contactless technology (contactless), but also to perform cash withdrawals in BBVA ATM from BBVA network with no need to hold any physical credit cards with the Withdrawal Wallet function. The app also contains new services that allow users to activate and deactivate their credit cards online in case of robbery or misdirection.

Terms to take into account:

  • Digital Banking: banking variety that is characterized by its access from a web portal.
  • Mobile Banking: baking variety characterized by its access from a mobile application.
  • Could Computing: technological proposition that offer services from the Internet (apps, computation and storage). This technology is allowing firms from multiple sectors to save on costs.
  • Big Data: Information actives characterised by its high volume, high speed and huge variety, that demand innovative and efficient solutions for processing for the improvement of knowledge and the decision-making in organizations.
  • Fintech: Emergent firms that create finance applications. Some examples are PayPal, Stripe or Funding Circle.
  • Blockchain: a register book (ledger) unchangeable that has a complete history of all transactions made online.

To sum up, some of the assumptions to understand the digital transformation are the following:

  • The extension of mobile use has eased this transformation wogether with the permanent connectivity.
  • It eases for the first time the immediate monitorization of capita, apart from easing new forms of payment and daily dealing of users.
  • At the same time, digital coins have emerged. One of them is Bitcoin, which is currently the main digital coin and it has driven to a transformation of financial markets.
  • Two of the great adavatatges of digitalization of baking are the resources and time saving.

Written by Natalia Villarrubia

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