In the future , a few clicks, even a swipe of the finger on the app , will be enough to confirm payment, and a payment order to a buyer protection portal for an immediate and secure debit. In many banks, this trend towards digitization is still ongoing or has not yet caught up with the latest market habits. In the future, only those banking systems that adapt to this fast, partially decentralized customer behavior in terms of technology and employee training will be able to survive.
Importance of Digitalization for Banking
Digitalization has long since found its way into the everyday lives of companies and private
households. Banks are sometimes lagging behind this new way of life. But only those credit
institutions with rapid progress in process automation and digitalized payment processing can keep
up with the market trends of new technologies. Paying is already a matter of a few clicks, with
immediate booking for the buyer and payment notification for the seller. E-commerce and customer
expectations are already demanding digitalization not as a premium service, but as the standard in finance. The IT trend towards digitalization also corresponds to the increase in digital actions, even the variations in working life between traditional offices and mobile workplaces.
Digitalization internally and externally unavoidable
Internally, digitization accelerates all accounting processes in the banking sector. In terms of time, credit institutions are no longer limited to opening times and working hours. Payment transactions take place at any time of day or night and must be employment database booked, forwarded, checked and processed at this speed. Externally, the fast and secure handling of global money flows also
depends on digitization in the banking sector. Stock exchange transactions have long been digital and
therefore faster than traditional trading. Overnight transactions can bring in large sums of profit by
morning, and digitized reactions can also quickly minimize and absorb losses. As a result, a bank
without digital processes will lag behind its modernized competitors in the future.
Changes in banking due to digitalization
Digitalization in banking is by no means costing jobs. Rather, traditional job profiles are changing,
such as that of bank clerks. IT skills will be part of the the role of data privacy compliance in safeguarding trust curriculum for vocational training in the future, rather than part of a degree
course. The job is no longer about simply recording and checking booking transactions. Rather,
digitalization affects all backend processes (internal bank adjustments to the software) and interfaces
to bank customers (front end with options for action). Banks are changing from isolated credit
institutions to networked parts with interfaces to social media, multi-channel platforms and app
offerings. The multi-skills learned by bank employees of the future are customer-oriented and capable
of networking both technically and personally.
Outlook on the digital future in banking and finance
The classic bank with branches, safes and transfer forms atbdirectory will no longer be used in the
future. However, they will remain part of the futuristic financial system for a long time to come.
However, the banking market will thin out, and that will include all credit institutions that are not
already driving the digitization process. A large part of global payment transactions already take place
without cash and checks. Auditing institutes have adapted to this. In the future, they will have even
more control functions with their own digitization. The dream of DeFi (decentralized finance) will
remain science fiction as long as the security of all banking and financial processes is still threatened
by illegal technologies and persons or groups of people.
