In 2018 consumers made a significant amount of purchases using their mobile devices. As a result, in many ways it was the year of digital banking. The European market has especially embraced it. Revolut and N26, the two biggest in Europe, they respectively have 3.3 and 2 million members. Between the two markets, they have earned more than $550 million in revenues.
The reasons that digital banking took off in 2018 include speed and convenience. In today’s world, everyone is busy and the faster they can open a new bank account the better. Most digital banks will get users their debit card in a matter of days, something physical banks can’t always do. Digital banks also offer services physical banks don’t.
Thanks to the surge of digital banking in 2018, there were certain trends that became hot. One of them is faster payments. Mobile apps such as Facebook now allow people to pay for goods and services instantly. Banking apps such as PayPal allow users to both send and receive money instantly.
Merchant services are now easier than ever to acquire. In today’s world, merchants have several ways to reach consumers. Digital banks allow them to make payment processing easier now than ever before.
Data is being used by retailers in new and exciting ways. They are using it to provide each customer with a personalized shopping experience. Predictive analysis is being used to help retailers make more sales digitally.
Security techniques were also different in 2018. Higher levels of security mean that consumers can now make purchases instantly, from virtually anywhere in the world. The security techniques that were previously used do not align with today’s digital world. New techniques have revolutionized payment processing in general and credit card processing specifically.
Last but not least, virtual reality has changed the face of the consumer retail industry. Consumers can now communicate with text bots to answer basic questions regarding a completed or future purchase.
In conclusion, the FSS is making it easy for banks to offer their customers new ways of paying for the things they need and want the most.