Digital banking must improve the way services are delivered to customers

Updated: Apr 20

The rate at which banks have tried to adapt to the current climate of accelerated digital services, amidst an ongoing pandemic, has been rather costly and time consuming to say the least. Banks are still utilising expensive and time-consuming methods to introduce new customer products and services but the era of digital banking calls for an approach that is time saving, cost effective and provides a great experience for the end user.

Banking has relied on siloed and archaic systems for some time, and has been flipped even more on its head since the beginning of the Covid-19 pandemic. From movement restrictions to complete lockdown and closures of retail businesses, banks have needed to innovate and develop new service delivery methods that satisfy both the industry at large and their customers. New opportunities are now available for banks and other industries, like the retail, lending and fintech sectors, to accelerate the scale their operations and bridge the digital banking and financial services divide.

Cloud banking. A term used as a digital banking buzz word, but what does it actually mean?

One of the trendiest buzz words used within the banking sector at the moment is ‘cloud-banking’. With cloud-banking; services and upgrades are supposed to be done with ease, however, just using the term cloud-banking for marketing purposes doesn’t necessarily deliver on that promise.

Banks and other financial service entities throw an enormous number of resources at problems that are, in reality, relatively easy to solve when one implements the right digital banking platform.

That is what bancX is. A fourth-generation experiential banking solution that, not only at its core, but through every touch point actually delivers by accelerating and completely enabling banking and financial service platforms so that, they can effectively deliver on the promises made to their customers.

Those promises are found in superior system functionality, seamless integration with existing systems through restful API, ease-of-upgrades, cost effectiveness and a user interface that creates a great experience for the end user where they no longer need to enter a bricks-and-mortar branch.

The four levels of cloud banking service provision

Cloud-banking is way more dynamic compared to historic systems implementation methods. IT resources can be shared and allocated dynamically in real-time, think of it as ‘always on’. Banks and other financial service businesses can now avoid capacity limitations, giving them the exact resources they need at all times. When they secure more business, their operations automatically evolve to meet the new demand. Cloud banking has four levels of service provision:

1. Business process as a service (BPaaS)

BPaaS involves the implementation of outsourced business processes on a cloud-based computing platform. It usually involves IT-intensive business processes that a company may not have the expertise in. By default this practice will deliver on an improved customer experience as a company gains access to industry best practices with the benefits of cloud computing provisioning.

2. Software as a service (SaaS)

SaaS is the process of delivering applications over the internet as a service. With this method a business does not need to install and maintain costly software and hardware products. A business can simply access these services from the internet. A simple example of an SaaS software type product is Netflix.

Again, implementing these types of services improves efficiencies and drives down costs making financial service products more accessible in a digital banking environment.

3. Platform as a service (PaaS)

Google compute engine (GCE) is an example of a platform as a service. Our very own BancX is another example, a great one in fact. PaaS is a cloud-based platform which enables businesses to develop, run and manage business applications without the need to build and manage their own infrastructure. BancX for example, offers a plug-and-play platform for FSPs to offer digital banking, lending, transactional and savings type products to their clients.

4. Infrastructure as a service (IaaS)

The base layer, IaaS, provides the basic cloud computing infrastructure that supports the services managed above.

Digital banking increases profits, reduces costs and drives social inclusion

Digital banking or cloud-based systems help banks to improve and automate workflows, increase efficiencies in an array of operational procedures and ultimately drives down costs. It also allows a business to rapidly scale their client database without having to implement heavy server costs to do so. In fact, on-site servers will become a thing of the past.

With reduced capacity restrictions, improved efficiencies, cost savings and opportunities for increased revenue streams digital banking should pass the massive cost savings onto the consumer.

When this happens, the financial industry is ‘opened up’ and becomes available to a broader audience that, especially in third world countries, may have been excluded before. That is one of the most powerful reasons for financial service businesses to adopt already existing platforms at a fraction of the cost of self-development – social inclusion.

Opportunity knocks in an industry that was once exclusive

Whether you are a bank, fintech, lender, retailer or insurance agency digital banking platforms like BancX will accelerate and enable real-time solutions for your company no matter the size.

Using advanced API (Application Programming Interface) you can implement changes such as adding new products within no time and then adopting as many new customers as you like without having to build additional infrastructure that is, again, time consuming and costly. There is no longer a need to upend servers and carry out maintenance which ultimately interrupts user experience and impacts negatively on customer satisfaction.

On a macro level these new opportunities create healthy competition. Competition improves product quality, service delivery and affordability of banking services to the end user. At the heart and soul of what digital banking should ultimately accomplish is the growth of an economy, the inclusion of all who belong to that economy and the upliftment of society as whole.

That is the power of technology and that is the power and purpose of digital banking.