Banking transformation in 2020

Posted by Lisa Williams on December 31st, 2020

Banking transformation is no longer a matter of choice for banks and financial institutions. Every bank and financial institution must transform today if they aspire to stay in a competitive position in the market. The prime objective is to streamline it in such a way that the bank customers do not face any difficulty in accessing and enjoying the desired services. Today, the customers are well informed, and they do know how to differentiate between the quality of service provided by two service providers. They do not waste much time in switching to a better service for better quality. 

It is not wrong to say that the need for banking transformation has increased significantly in the year 2020. It is partly because of the ongoing pandemic and the resultant lockdowns imposed by the governments. Financial activities were hit, and customer service went online. An overwhelming number of people came online to avail banking services, which required a robust technical infrastructure to handle the increase in the number of transactions.

Enterprises that had already undergone banking digital transformation and were continuously investing in the development of the digital infrastructure managed to reap the benefit of the increased demand for digital banking services. It was observed that even old customers switched to the service of other banks in search of better digital services. The year 2020 has pointed out that the transformation of the banking process is not a fashionable upgrade. It is a necessity and is nothing less than a part of the modern lifestyle of human civilization.

It can be considered a boon that several of the major banking corporations had already incorporated open banking technology in their infrastructure during the last decade. It assisted in helping customers manage their transactions in these unprecedented times. Its enhanced usage has also prompted these banks to pump up their investments in mobile app-based banking services, which would enable bank customers to access their accounts and manage fund transfers using just their smartphones. 2020 might be a year in which most of us would not like to live again, but it has also shown us what to do and what not to do in order to make our lives more convenient.