Advent in digital marketing is not new and is prevalent since the advent of internet, ATM machines, cards and progressed at a quicker pace since the usage of smartphones became popular. Nowadays most of the population prefer using smartphones as the medium for digital banking.
Digital banking improves customer relationship in a greater way. They also generate new acquisitions and give a competitive edge.
Some of the few tech-enabled strategies that are leading the way are:
Blockchain technology is commonly used in fintech industry. A blockchain basically is a distributed database, wherein a list of records continuously widen up and is secured through cryptography. The reasons for this technology being popular are:
Redundancy: No matter how many transactions take at a point there is no point of failure as blockchain replicates on group of nodes on a network.
Immutable: The architecture of blockchain doesn’t allow any hacker to tamper with data stored in it. When one block is unlocked all the successive blocks have to be unlocked. The data is also secured with digital finger print including date and timestamp. If any block is touched the timestamp and date changes which will not match with other blocks.
Encryption: Digital signatures are based on cryptographic keys which prevents any unauthorized transaction to take place.
Some of the applications of blockchain are:
- Smart Contracts: These contracts are self–executing, wherein the terms of agreement are preprogrammed. This concept enables trade between two parties without any intermediary.
- Cross-Border payments: International transactions take days for completion. These kind of payments platforms make transactions more efficient and less time consuming, globally.
- Payment Data Monetization
Payment Service Providers use insights for customer purchasing behavior, which is used to render better services to customer.
Customer big data can help improve existing traditional payment modes or offer advanced analytics techniques.
PSPs collect data and are used by various third parties to develop innovative solutions.
- Open Banking
Open banking is also a part of fintech ecosystems, wherein third party developers use open APIs to build services or applications for any financial institution. This system renders services to the less covered markets. Such sharing of data also encourages new business models and enable banks to extend their offerings through third party apps and services.
- Advanced Mobile Banking
Usage of web and mobile platforms is encouraged to enable customer to execute transactions like funds transfer, track latest transactions, notifications from bank etc.
Cryptocurrencies are turning out to be a global market for assets. They are becoming a part of international trading system.
Government has validated to include cryptocurrency in trading, investors look out for reliable wallets to manage them.