1. Home
  2. Company
  3. Blog
  4. The banking sector has be...

The banking sector has become digital. What tools and solutions does it use?

page main image

The development of advanced technologies has a particular impact on the business sphere. Recently, the financial sector has been going through one of the most ambitious stages of evolution. First of all, this applies to banks. They are no longer the place where people come for money and become conduits of necessary financial services. 

Banks have new competitors. Among them are both promising fintech startups and ecosystems that unite finance. In such conditions, digital transformation becomes a necessary solution for those who want to strengthen their positions in the market. 

What is digital transformation in the banking sector?

Digital transformation in the banking sector is the use of modern equipment and software and the transition to management, communication, and corporate culture. Digitalization arises as a result of the development of information and communication technologies around the world. The economic sector was one of the first to be influenced by the active development of all industries. As a result of the economic crisis, the financial sector was looking for new ways to reduce costs while maintaining the quality of services provided to its customers. At the same time, the market for modern mobile technologies began to grow. The promotion of the concept of the Internet of Things and blockchain was developing. We can assume that this accelerated the process of digital transformation in the banking sector. 

Benefits of Digital Transformation for Banking | PNN Soft

The impact of digitalization on modern banks

The creation of a digital bank includes:

The tasks of digitalization are accumulated within the framework of a single banking platform. They meet the challenges of the new digital economy that has overtaken the banking sector. Banks are investing heavily in the development of the business model of the future digital bank. The transition from traditional to digital banks is one of the leading trends, which has been fixed in the programs of international discussions at economic forums and conferences. 

Today, existing digital banks offer most of their products and services in digital form. The infrastructure of such a bank is optimized for digital communications and is fully ready for a rapid change in technologies. The number of such banks is growing. It should be noted that recently there has been a progressive development of mobile and online banking. They do not have their own offices or ATMs. Online banks offer their users to conduct all operations online. Using a website, a mobile application, communicating via chat with an operator and rarely by phone, a consumer can issue a card, a loan, etc. Therefore, digital banks do not have an obvious need to open offices in different cities, pay for the supply and security of those offices, and contact customers directly. Therefore, flexibility in servicing is the key to the more rapid growth of the digital bank.

As a rule, they offer their clients a wide range of services through the development of software for banks. The banking sector provides: 

What are the key components of digital transformation for the banking sector?

Digital transformation involves the transition from traditional methods of work to completely new ones. They are built based on modern technological solutions. This process affects important aspects of the business. They include: 

The components of digital transformation are divided into several categories:

What is the future of the digital transformation in the banking sector | PNN Soft

The main digital banking tools

Digital banking is not something new. However, it is still convenient for most segments to carry out banking operations through physical channels. Many banks offer various digital tools for processing bill payments or withdrawing cash from an ATM without using a card. 

Let’s look at a few tools that are used in the digital transformation of the bank for security: 

Digital Transformation in Banking and Financial Services | PNN Soft

Software development for the bank is one of the most relevant solutions today

Banking software provides the infrastructure for creating and administering financial products. In addition, the banking software can store data about the owners, maintaining complete confidentiality. It also handles financial transaction processing and accounting. A competent UX design is responsible for the appearance of mobile banking. The developers of banking software emphasize the flexibility and customizability of the application following the individual customer experience and financial products. 

Functions and capabilities of Banking Software:

From the point of view of the business development department, digital transformation is not a reverse process. Standardization and automation of work processes take into account fundamental changes in employee behaviour. Digitalization cannot completely replace manual labour, but it can transform the model of corporate interactions and provide full effectiveness in the future. The development of the IT department comes to the fore. Because of the improvement of digital resources, automation and technical support of the software is becoming a priority.