Custom banking software solutions

What challenges are banks facing right now?

1. Modernizing mobile banking: Traditional banks are partnering with FinTech software developers to revamp their outdated mobile apps, enhancing usability and competing with sleek fintech offerings, ultimately accelerating the evolution of the mobile banking sector.
2. Personalized offers: Banks are turning to AI and machine learning to deliver customized offers, recognizing the shift from a one-size-fits-all approach and the need to meet individual customer expectations in 2023.
3. AI adoption: Large banks are challenged by AI adoption, primarily due to a lack of strategy, employee apprehension, and an expertise gap. To stay competitive, they must formulate comprehensive AI adoption plans, educate their workforce, and consider AI fintech solutions, potentially through collaboration with specialists.
4. User-centered innovation: Banking technology is evolving rapidly, necessitating innovation. Banks must cater to the diverse expectations of different generations by considering separate branches tailored for specific demographics and embracing tailor-made solutions.
5. Cost management: Retail banks seek to reduce expenses as operating costs rise. They do so through automation and fintech solutions, streamlining processes, optimizing customer experiences, and ensuring regulatory compliance. Collaboration with fintech firms provides access to advanced technology and expertise for cost reduction.

What are the fintech trends for 2024 and beyond?

Seven key trends will shape the financial and banking industries in the coming months.

1. Biometric authentication: Fintech apps lean towards facial recognition and fingerprint scanning to ensure secure and user-friendly logins.
2. AI-powered personal finance guidance: Fintech applications incorporate AI-driven advisors that offer tailored financial advice, covering areas like budgeting, investing, and debt management.
3. Stablecoins: Digital currencies, known as stablecoins, are poised to bridge the gap between traditional and digital money, focusing on transparency, efficiency, and global accessibility.
4. Neobanking apps: A neobank is a type of bank that operates entirely online or through a mobile app, without physical branch locations. With their convenience, affordability, and innovation, they provide a competitive alternative to conventional banks.
5. Blockchain integration: The adoption of blockchain technology will enhance security, reduce costs, and improve efficiency in various fintech solutions, particularly in cross-border payments, lending, and trade finance.
6. Embedded finance: Financial services will become integrated into non-financial products and platforms, offering users added convenience, affordability, and a wider range of options.
7. Financial inclusion initiatives: Fintech companies will put efforts into ensuring that affordable financial services are accessible to underserved populations, achieved through mobile banking, digital payments, alternative credit scoring, and microfinance.

What are the traits of a successful bank in 2024?

A bank should exhibit several vital characteristics to thrive in the future of banking. 

It must be intelligent – capable of suggesting and automating important choices and tasks. 

Personalization is crucial as it leverages insights into customers’ behaviors and needs to offer timely and relevant solutions. 

Extreme automation (streamlining manual tasks and decision-making processes) is essential. To keep pace with fintech competitors, the bank should prioritize speed and agility, releasing frequent updates while maintaining security measures.

Finally, a competitive bank must operate with an omnichannel approach. It can seamlessly integrate digital and physical products, catering to users’ diverse needs across the web, mobile apps, call centers, and smart devices. This ensures effortless transitions and prompt issue resolution for a user-centric experience.

Why is it so important for banks to become “AI-first”?

Becoming “AI-first” in the banking industry is imperative. Why?

The adoption of AI technologies in the banking sector is expected to generate substantial business value. Statista predicts a value of around 99 billion US dollars in the Asia-Pacific region by 2030. 

Missing out on AI technologies could lead to being out-competed by other banks and non-banking tech giants like Meta, Microsoft, Amazon, Google, and Apple. These tech companies are racing to create all-in-one apps encompassing various services, including payments and digital IDs, thus disrupting the traditional methods for discovering banking services. 

Consequently, banks must embrace AI to remain competitive in an evolving landscape of both traditional financial institutions and tech-driven innovators.

How is AI used in the banking industry?

AI is used in banking and finance for various tasks, whether dealing with customers, managing information behind the scenes, or handling administrative work. 

A few examples involve:

• Security – machine learning is utilized for fraud detection, and biometrics for authentication;
• Automation – robotic process automation (RPA) lets streamline structured operational tasks, chatbots automate customer support, and optical character recognition (OCR) is used to process documents fast;
• Personalization – banks use AI-based recommender systems to provide personalized offers.