With currencies being backed by governments, they can be manipulated at will by the governments, and consumers are charged with fee and face complexities when trading internationally.
Digitization in the banking industry is not an option; it is inevitable because every industry is digitized, and the financial services industry is no exception. It is a significant step in overcoming cash disadvantages and for customers to have a more seamless experience. Digitization offers customers convenience and also helps to save time by reducing human error and thus building customer loyalty.
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Traditional banking involves banks in their closed system, which includes the point of sale, web, and mobile app to control their entire end-to-end banking experience. The most significant advantage of this model is that all processes, technology, and its components are under control but also prove to be the disadvantage because personalized experience in accordance with ever-changing consumer expectations is challenging to achieve due to regulatory and compliance problems. The future of safe and secure digital payments lies in contactless payment methods. This mainly includes sound wave, RFID, QR, and NFC. Whether it’s the retail sector or tariff payments, contactless payments are much simpler and faster. An API banking platform is located between a bank’s backend systems and the combined experience of the bank and third-party services to enable new business models, such as opening their internal infrastructure to third-party developers, to build their software and provide their customers with new use cases to stay ahead of their competition.
With the ever-increasing use of smartphones, the digitization of the banking sector is a need in order to meet the growing world expectations. It has reduced mistakes and increased convenience. However, on the other hand, cyber threats are on the rise; banks need to be aware of the threats and be prepared to deal with these attacks.