Black Banking institutions may not have been taking full advantage of the opportunity to be recognized above their competition. This change journey can be visualized from the traditional brick-and-mortar set up to the evolved digital-first avatar. This blog post will be about the journey of banking, and the key moments that determined its present form.
The Early Days of Banking
Banking is something that has been with humans since the dawn of human civilization. Banks were initially really just a loans-and-deposits model However, as commerce and trading expanded as economies grew the need for more advanced banking practices was realized. Physical branches were created and banks began to offer a wide variety of services such as funds to be saved, funds to be transferred immediately, and the secure storage of cash and valuables.
The Rise of Brick-and-Mortar Banks
In the 20th century, we encountered a deluge of brick-and-mortar banks. These neighborhood banks turned into community pillars, proffering a range of financial services and providing guidance to consumers and businesses, alike. Customers appreciated the human touch and the reassurance of hands-on security. Around this time, banks were likewise opening up their services including investment services, credit cards, and mortgage lending.
Technological Advancements
The first revolution in banking was due to technology. Machine Messages & ATMs ATMs fundamentally changed the way people interacted with money, with clients no longer having to walk into the branch and interact with wall-to-wall bankers. Then came the late 20th century, bringing with it electronic banking, which in turn opened up the possibility for people to conduct their banking without leaving home.
The Digital Revolution
The digital banking of the online era came into existence. With the advent of online banking platforms, customers were able to complete an entire spectrum of transactions on the Internet. An increasing number of tech-savvy customers were drawn to digital banking due to its convenience (as well as speed and accessibility). This was also influenced by the rise of mobile banking, as smartphones effectively became new bank branches.
Fintech and the Future
Financial Technology (Fintech) companies have taken the banking industry by storm. Challenger banks have thrown a wrench in the gears of the traditional banking industry by rolling out some cool services like peer-to-peer payments, digital wallets, and more. The global resurgence of interest in UX and technology forces sleepy traditional banks to follow the trend and innovate.
Challenges and Opportunities
The transition into digital banking has its problem points to address. The security of their customer data is now at the top of the agenda and banks spend a lot on their cybersecurity initiatives. Moreover, digital literacy is required as not everyone is confident to move online.
However, the digital banking space also abounds with opportunities. Data analytics help banks to customize their services more appropriately, improve customer engagement, and optimize operations. Artificial intelligence and machine learning are soon going to redefine the industry, and will ultimately change the face of banking, by making banking systems efficient and customer-friendly.
Conclusion
However, the banking industry has demonstrated that it can adapt — the evolution from brick-and-mortar to largely digital is proof of that. The future of the banking industry will be shaped by advancements in technology and evolving consumer demands. The trick will be doing this while also keeping with the tradition of providing secure and customer-focused services that make us trust banks as central entities of our society.