A guideline into how digital banking is likely to change the entire financial service and banking industry in Malaysia. Should we be an affair or involved in digital banking?
What is Digital Banking
All of you have misunderstood the definition of digital banking and online banking. Well, digital banking refers to the full organisation of banks and all its activities, programs and functions instead of just digitizing your services and products. Unlike online banking or mobile banking, some of the activities still require manual intervention and only the front end is digitalised. Whereas, digital banking digitise the back end as well which helps the bank to boost proactive and more mobile to deliver convenience.
The possible impact of Digital Banking
Digital banking serves to deliver banking services which could help the companies and communities to have access to banking facilities. This would cause economic growth and a positive impact on the country. Apart from that, digital banking compared to traditional banks may save more costs through automation and self-serve technology. This is due to if the traditional banks do not keep up with innovation to meet the technological changes, they may suffer some disruption.
The risks and challenges of Digital Banking
Talk deeper into the risks faced by digital banking is that digital transformation is a complicated process. This is because you need specialists to become a digital bank. Hence, looking for a mentor is challenging as you need to find someone who can assist you throughout this transformation.
Not to mention, retaining the trust of your customers could be formidable as well. Trust is the crucial precondition for the widespread adoption of digital banking by customers. As they need to make sure that their identity will not be snitched and defraud payments will not occur from their accounts.
In a nutshell, Digital Banking seems to bring more benefits to the country in the long run, but it does contain some obstacles as well. In fact, every industry is constantly seeking to introduce new and innovative solutions to the market. And customers are looking for an excellent experience.
Written by Yen Teng
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