Traditional banks are organized around money in branches, their thinking, their technology, their incentive systems, and their knowledge about customers — are all structured around branches and product lines. Cell center systems were layered on top, with the result that customer service reps sometimes needed six open windows to see a customer’s business with the bank.
While digital banks have to focus on electronic platforms and data as their core and branches as secondary. Their thinking, their technology, their systems, data of customers– are all structured around data hubs.
Digital means democratization and decentralization. We are putting power into the customers’ hands and so, rather than having multiple identifier from a bank who issues him with proofs of access, customer now have his own digital bucket for which he can issue access to his account on an as-needed basis.
Now we live in a world that is turning digital, Banking Accounts revolving in Mobile accounts. Customer demands digital solution of their needs, they don’t have time to go for shopping, money transfer, bill payments and financial services, they want a single touch solution of all problems. So in future banks will have make place at the fingers of their customers.
Digital banking war has begun in Pakistan also, there are many banks providing digital solutions to their customers but with over 10 million mobile wallets, Mobilink Microfinance Bank Ltd. (Mera Phone, Mera Bank) becomes the largest digital bank in Pakistan in terms of coverage in partnership with JAZZ, Pakistan's largest telecom & Technology Company. Digital wallets allow users to send and receive money including wages, pensions and other welfare payments , get loans disbursed, pay utility bills, pay for groceries and buy airtime etc digitally.
The decision for banks to add more digital solutions at all operational levels will have a major impact on their financial stability and future survival. Otherwise, it would be very difficult for them to sustain financial stability.
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