Smartphones are facilitating numerous functions of our daily lives with just a few taps. Over the years they have gradually replaced calendars, photo albums, cameras, watches, calculators, music systems, alarm clocks, and now our wallet too. Moreover, digital wallets have witnessed a noticeable surge since the COVID-19 pandemic. Retailers, businesses, and consumers across the globe made the shift to mobile money systems to accommodate the ‘new normal.’ According to a report, the digital payment market may witness a surge of 14.2% by 2025.
To survive the fintech boom, it is inevitable for banks and financial institutions to deliver cutting-edge, highly secured digital financial solutions that make payments as easy as possible for their customers. Digital banking platforms allow banks to stand the pace of the digital era with a sustainable and holistic approach.
5 Features to keep in mind while looking for a Digital Banking Platform
To facilitate this transition of digitization, banks have access to hundreds of established technology players as well as newer Fintech startups to help them with their products and platforms. To ensure a transformation that is flexible and futuristic, banks must keep in mind the following features while choosing their vendor for digital financial solutions. Following are the 5 primary features that a bank must look for while deciding upon a partner for its digital banking platform.
Security with Elliptic Curve Cryptography – 256 bits
Digital financial transactions are witnessing an exceptional growth. However, there is also a raising concern regarding frauds and the possibility of sensitive information getting compromised. Thus, customers are demanding a robust security feature from fintech solutions. Elliptic Curve Cryptography (ECC) can work efficiently in a low-computing and low-memory environment; thus, it is the best option for digital financial solutions. Thus, banks must look for a digital financial solution that leverages the best-in-class security to ensure near-zero frauds in financial transactions.
With the ever-growing adoption of smartphones and innovations in IoT devices (wearables, smart home hubs), more and more gadgets are now being utilized to access banking services. This has resulted in lesser boundaries between customer experiences across these channels for banking services and otherwise.
Customers today demand a seamless transition between channels for banking services. For instance, a KYC process can be initiated in one device and later can be resumed from another device, or maybe a transaction can be initiated in one device and conclude in another one. Thus, a digital banking solution should be the one that can deliver a seamless omni-channel experience with a client-centric view of their communications with the bank.
Expertise in Regulatory Processes
Regulators around the world have been stringent with banks and financial institutions and have imposed heavy penalties on non-compliance. It is crucial for banks to stay in sync with the deviations in order to prepare for regulatory needs. A dependable vendor of a digital financial service possesses adequate expertise on the regulatory landscape and guarantees that the systems are compliant with the latest requirements.
Security through Biometric Technology
Customers provide their personal information to banks with complete trust; thus, they expect a high level of security and protection of their data as well as money. Advanced Biometric solutions enable banks to provide security along with speed, and convenience for a seamless customer experience. Further on, to simplify arduous processes like KYC, a dependable vendor must provide e-KYC with biometric solutions to verify the identity and the address of the subscriber electronically. Along with ease-of-use and security, biometric software that the vendor offers must provide a unified, superior customer experience across all payment channels - from smartphones, ATMs to smart home devices.
Open API Banking Capabilities
While choosing a digital banking solution, banks must now also account for their open API banking strategy. This would allow the bank to offer a platform that gets you ready for the API economy with functionalities, such as an API gateway and API management, strong customer authentication, PSD2 compliance, and more. The digital financial solution must enable the bank to effortlessly integrate with other banks and ecosystem partners to offer value-adding services to its customers through open APIs. These services may include bank account aggregation, personal financial management services, remittances, or any non-financial service customers might be interested in (plane tickets, events, loyalty schemes, etc).
Choosing the Best Partner for Digital Transformation of Your Bank
The above-listed attributes can allow a bank to assess the relevance, robustness, and alignment of a digital banking platform provider with its own strategy and find the most suitable partner in its digital transformation journey.
MobiFin Elite by Panamax employs the latest technologies to deliver best-in-class services that significantly reduce costs and unlock new business opportunities for banks. MobiFin Elite provides cutting-edge mobile financial services to simplify online transactions and drive financial inclusion for the unbanked and underbanked around the globe. The platform is designed to help banks and financial firms create solutions suitable for the constantly innovating financial marketplace.