Next-generation digital banking solutions and its adoption in Asian Countries
Banks have been using digital banking for some time now. Digital banking helps consumers by bringing the bank to their homes. With advances in technology, new developments have led to better and improved solutions.
The Next-generation digital banking solutions that are now available allow banks to seamless integrate their services across multiple channels. Apart from the core banking services, these solutions offer a host of other services making digital banking a value-adding experience for customers.
What are Next-generation digital banking solutions?
The use of technology has been beneficial for both banks and their customers. Digital banking has led to a major change in the way banks work. Mobile banking has become popular and most banks offer an app for their customers to transact on their account through their smartphones.
Digital banking has raised concerns about security issues.
All these have led to continuous innovations and changes in banking. Use of latest technology like Artificial intelligence, predictive analytics, and voice recognition has led to the development of Next-generation digital banking.
Apart from the services offered earlier, there are more services that offer value to customers. Digital banking is now much more secure.
Implementation of Next-generation digital banking solutions
The Next-generation digital banking solutions allow banks to offer a complete bouquet of services to customers. This would include:
Account management, including transaction on accounts.
Single sign on to account
Value added services like investment, insurance, savings, and loans
Integration with mobile banking
Single platform for transacting on all channels
Next-generation digital banking solutions in Asia
Digital banking in Asia
has become popular and is being used all across the continent. A study carried out has shown that 52% of urban bank customers in Asian emerging countries use digital banking to carry out transactions.
In developed countries, the usage rate among urban bank customers is 92%, which is very significant. The study has shown the top countries that have successfully implemented digital banking are:
The emerging countries that are making significant progress in implementing digital banking in Asia are:
It has been found that majority bank customers make use of digital banking for basic transactions like checking account balance, transferring money from account to account, and for paying bills through their bank account. There are however many customers would use value-added services like investment, insurance, and savings through the digital banking platform.
Banks across Asia have realized the importance of digital banking. Banks that offer digital banking are preferred by more customers. This has made all banks across Asia shift to digital banking. With governments in Asian countries promoting digital initiatives, the use of digital banking is gradually increasing.
In the days to come, the reach would be more and there would be more number of customers using digital solutions to carry out their banking.
Let us take a look at how digital banking is being implemented in some of the prominent Asian countries.
1) Digital Banking in Indonesia
Digital banking in Indonesia has grown rapidly. In urban banks in Indonesia, 58% customers use digital banking. This is slightly more than the average for Asian countries.
There are many factors that have led to this. The growth of internet, the popularity of smartphones, and the support of the government for digitalization are factors that have helped in increasing adoption of digital banking. Banks have also understood the need for digital banking and the benefits that it offers.
Bank in Indonesia are now offering various banking products and services through digital banking. They have also realized that customers who use digital banking in Indonesia can help increase the bank’s revenues. This has ensured a great focus on use of digital banking. More than half of the customers who did not use digital banking have also expressed their interest to shift over. This shows that the prospects for digital banking in Indonesia is good.
2) Digital Banking in Vietnam
Digital banking in Vietnam has been growing and most banks are gradually adopting digital banking for their operations. A large number of customers are using digital banking and find it convenient to transact online.
Most of the top banks are offering these solutions to customers. A study showed that 60% of customers of banks were receptive to the idea of opening a bank account in a branch less digital bank.
The government of Vietnam is also doing its best to promote digital banking in Vietnam. The Govt. has an ambitious plan of going fully cashless by 2020. To do this, they are boosting innovation in technology and encouraging banks to adopt it. The prospects for digital banking are bright in Vietnam.
3) Digital Banking in Hong Kong
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4) Digital Banking in Hong Kong
Hong Kong is one of the developed countries in Asia to make use of digital banking. Most banks and customers have adopted digital banking in Hong Kong. In fact, the number of customers using digital banking has risen to 87%, which is very significant. This shows that banks are promoting digital banking and customers who have realized its importance are adapting to it quickly.
Digital banking in Hong Kong has increased thanks to the prevalence of mobile banking. In fact more than 90% of bank customers use their mobile phones for availing of digital banking services.
Apart from Asia, in other countries too digital banking is growing. Digital banking in Kenya is also growing fast like in other countries of the world. The Kenyan govt. has announced a Vision 2030 blueprint that focuses on digital banking and has plans to ensure that most banking customers adopt this technology.
The use of mobile phones is what has helped in the growth of digital banking in Kenya.
Across the world, Next-generation digital banking solutions are being implemented successfully. In the next few years, it will grow even more fast as new technologies would be introduced. The prospects are bright for its adoption worldwide.