Digital only banks – A megatrend transforming banking

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The Rise of Digital-Only Banking 
What incumbents can learn from digital players
“Digitization means that financial institutions are increasingly becoming technology companies with a banking license.” - Zane Miltina, Luminor Bank 
What Does Being Truly Digital Mean For Banks?  
  • For the customer, it means a seamless experience 
  • For the business, it says to automate to reduce time and cost   

Banks Are Putting In Top Dollars To Win The Digital Race  

The Rise Of 2 Kinds Of Banks:  

  1. The digital disruptor 
    • It is already a profit-making bank 
    • Its deposits and users are growing rapidly
    • It serves the millennials and the unserved 
  1. The digitally disrupted 
    • They are slow to adapt to change
    • They think of digital transformation as building apps 
    • Lastly, they fail to shift out of the legacy mindset and into the digital era

The 6 Things Banks Need To Do: 

  • Lower costs by automating tasks
  • Build digital customer solutions that add value
  • Create new revenue models to adapt to the changing landscape
  • Develop a form of responsive agility 
  • Build a tech brand built on trust
  • Ensure that user data security is a top priority and not to be trifled with

The 3 Rules Of Digital Banks 

  1. A digital first idea like that of WeBank 
  1. Be a true advisor of the customer’s financial well-being 
  1. Build partnerships with non-financial service providers to embed customer value 
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Megatrends of Banking

Banking or banks?