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April 3, 2018

Mobile Payments, Cashless Banking, and Other Digital Trends for Banks

Banks that want to both survive and grow must scale digitally. Some innovative technology trends for banks that customers expect include mobile payment options, cashless banking, and better security.

As banking becomes even more competitive and the pace of technology innovation accelerates, there is going to be an increased demand from consumers and business customers for the best financial services available. While FinTech firms have been developing better payment apps and solutions that offer more convenience and security, banks will be left behind if they don't offer the same services. Here are some of the top digital trends for banks, including a few key partnerships with FinTech firms.

Banks that wish to grow in this environment will partner with FinTechs to offer the latest digital trends.

Mobile Payments as a Digital Banking Trend

One of the largest markets in FinTech right now is that of the various payments applications. Paypal's Venmo was an early market entry that reports moving $27 billion in the last quarter of 2017 alone. A new payment app called Zelle is set to rival Venmo, and it hasn't even officially launched yet.

Zelle is a person-to-person, in-app payments system that is backed by dozens of U.S. banks including Wells Fargo and Bank of America. The system operates as a bridge between big banks by processing person-to-person transfers, like Venmo, as well as mobile payments. 

Even though Zelle hasn't officially launched, it's working and in use by more than 60 partner banks. In 2017, the system moved $75 billion, which is more than double the $35 billion moved by Venmo last year. For consumers who want to transfer cash or easily split tabs with no fees, Venmo is going to be a popular option in the future.

How Banks are Embracing Cashless Banking

Few consumers look forward to driving to the local bank to open an account, apply for a loan, make a deposit, or transfer funds. Most of us would rather accomplish all of these tasks online with a cashless banking solution.

First City Monumental Bank (FCMB) in partnership with the Central Bank of Nigeria (CBN) is allowing customers to access all of these services digitally through its mobile banking solution. This is a self-service, secured banking solution that allows existing customers to open new accounts, transfer funds, apply for loans, deposit and withdraw funds, send cash, request limit increases, and access other value-added services.

Among the top digital trends in demand by consumers are mobile payments and cashless banking.

Where are Banks Heading with Blockchain Technology?

Even if a bank shies away from bitcoin, it may embrace blockchain technology for its many benefits. Banks and financial services companies are facing a host of challenges that include time delays in processing transactions, currency exchange problems, and security issues. 

Financial services that use blockchain technology have the benefit of increased ledger efficiency and faster transaction speed. Blockchain is also much more secure than traditional banking solutions and is easily scalable. 

A Loan Sale Advisory Service Can Facilitate FinTech Partnerships

Banks that don't realize the necessity for digital banking solutions are likely to lose clients and get left behind by competitors. Even the most traditional bank must innovate to secure its future.

Customers want to access their financial data at any time of the day or night and from a mobile device, so any bank that has so far resisted change will need to quickly make a shift.

Fortunately, many FinTech firms are looking for lucrative partnerships, and this is likely the best way to keep your bank on a competitive plane with others in its class. Garnet can help banks and credit unions find the best partners depending on its needs and budget.

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