The banking sector is not an exception to how the digital revolution is redefining industries. This change has raised the intriguing question of whether we need one bank or two.
Users of digital banking increased from 30% in 2007 to 76% in 2020 in the UK alone. The majority of clients are either no longer visiting physical branch locations or have abandoned their traditional banks entirely in favour of a mobile-only bank.
Let’s explore the dynamic ecosystem in which digital banks are gradually taking over the function of a backup to traditional bank accounts by providing an alternate yet complementary route for financial management.
The evolution of banking
The origins of banking can be traced to prehistoric societies where traders and common people trusted trustworthy intermediaries and temples with their riches.
These early varieties of banking developed into more organised institutions that aided in money transfers and wealth management over time.
Technology-driven developments in banking began to emerge in the late 20th century, including the emergence of ATMs, electronic financial transfers, and online banking portals. These developments paved the way for the revolution in digital banking.
Fully online banks, sometimes known as digital banks, have emerged as disruptive forces in the financial industry as the digital landscape has evolved. These banks provided financial services via digital channels because they were not constrained by physical infrastructure.
It becomes clear that the advent of digital banks represents both the evolution and revolution of conventional banking practises when we follow the convoluted path of banking evolution.
Key benefits of digital banks
Beyond just being convenient, digital banks are alluring for a variety of reasons that have made them popular.
Convenience and accessibility
Digital banks give 24/7 access to accounts and services, breaking away from the restrictions of conventional banking hours. Customers have the freedom to handle their funds whenever and wherever they want thanks to this unrivalled convenience.
Based on a 2023 Forbes Advisor U.S. Consumer Banking Statistics research, nearly three out of four Americans (78%) prefer online or mobile banking over in-person banking.
With smartphone apps at the forefront, digital banks give users access to banking services. The user-friendly interfaces of these apps ease financial tasks, removing the need for actual trips to bank locations, from checking accounts to making payments.
Geographical restrictions disappear as customers can conduct international transactions with digital banks without being constrained by physical branches.
Tech-driven customer experience
When opening an account, digital banks prioritise speed and simplicity while minimising paperwork and administrative obstacles.
With improved identity verification techniques, user experience is not sacrificed for security.
Digital banks offer customers personalised financial advice, as well as real-time insights into their spending patterns by utilising data analytics and artificial intelligence.
Beyond their standard offerings, digital banks offer cutting-edge financial services and products to meet the demands of a wide range of customers, including peer-to-peer lending, investment platforms, and cryptocurrency wallets.
Black Banx’s entry into the banking landscape
Black Banx became a ground-breaking player in a time of fast digitization and game-changing technology advancements.
The digital bank was established in 2014 with the goal of reinventing banking norms and a dedication to defying expectations and providing its clients with unmatched value.
By presenting itself as a combination of traditional banking principles and cutting-edge fintech technologies, Black Banx quickly carved out a niche.
Using cutting-edge technology, Black Banx provided a variety of digital solutions that improve the client experience. Technology became an essential component of Black Banx’s identity, from safe online transactions to AI-driven financial analytics.
Black Banx embraced advancements in technology while keeping a sharp focus on the user experience. The bank’s commitment to making banking for customers easier was highlighted by its user-friendly interfaces and mobile apps.
The industry was shaken by Black Banx’s debut in the digital banking space, which encouraged other participants to come up with innovative ways to combine conventional banking methods with the effectiveness of digital channels.
User experience: Traditional or digital?
The client experience is at the heart of innovation and differentiation as the financial market changes. How people connect with their financial institutions has been completely redesigned as a result of the shift from traditional banking to digital platforms.
Black Banx’s analysis of the subtleties of customer experience in both contexts provides us with important insights into the advantages and disadvantages of each strategy.
Personalization of services in traditional banking
- In-person interactions: Traditional banks are excellent at encouraging in-person encounters, enabling clients to build close bonds with bankers and advisors.
- Tailored advice: Customers gain from private sessions with financial professionals that provide personalised advice and direction. This strategy is appropriate for difficult financial issues like retirement planning and investing.
- Branch ambiance: A concrete perception of permanency and security is aided by the physical presence of bank branches. Branches act as community centres to strengthen ties to the community.
Tech-driven experience in digital banking
- Convenience at scale: With the ability to perform transactions, monitor accounts, and access services from mobile devices, digital banks place a high priority on convenience.
- 24/7 accessibility: Customers have the flexibility to handle their funds at their convenience thanks to the 24/7 availability of digital services.
- AI-powered insights: To give consumers individualised insights into their financial behaviours, spending patterns, and opportunities for savings, digital banks use data analytics and AI algorithms.
Black Banx on balancing human touch and tech
- Seamless integration: Black Banx is the epitome of a holistic strategy that seamlessly integrates the finest of both worlds. The bank strikes a careful balance between technological ease and personal service.
- Hybrid customer service: Black Banx’s hybrid model caters to both clients who appreciate self-service and those looking for individualised support. It combines automated customer service with access to human advisors.
- Customizable experiences: Experiences that may be tailored to suit the needs of each consumer are provided by Black Banx, which makes use of technological advancements to create these experiences.
The clash between tradition and innovation in the constantly changing world of banking has given rise to an engrossing story that examines the mutually beneficial connection between conventional banks and their online competitors.
Black Banx’s entry into the digital banking space is an example of the power of innovation and a successful fusion of tradition and contemporary.
The digital bank has ushered in a new era where clients may enjoy the best of both worlds by developing a hybrid model that smoothly combines technological developments with the human touch.
It becomes clear that traditional and digital banking do not operate in opposition to one another but rather complement one another as we consider the dynamic interaction between the two.
The banking industry is primed for further change in the future. The lessons learned from Black Banx’s journey and the broader discussion on the coexistence of traditional and digital banking will surely shape the development of financial services, as digitalization is expected to continue reshaping the sector.