Digital vs Traditional Banks. Who’s here to stay?

If money makes the world go round, technology is the fuel it uses.

Technology has changed how we communicate, build relationships, learn, live.

It has changed how we spend, save and manage money.

Can you remember the last time you stepped into a banking hall to complete a simple transaction like deposit or withdrawal?

I don’t. Neither does my mum (who is almost 60)

Banking in Nigeria has come a long way. From standing in long queues in a banking hall to now being able to complete a transaction in minutes from the comfort of your home, it’s a disruption we’re thankful for.

Of course, traditional banks were the first to introduce digital services via Automated Teller Machines (ATM) and mobile banking applications, however, Neo-banks otherwise called digital banks, have further bumped up the offerings with their branchless banking, now everything banking can be done with your mobile phone from account openings to transfers, savings, getting loans, investment, ATM request, speaking with customer care e.t.c

The opportunities are truly endless with the advantage of technology and we’re seeing more people, especially the younger generation, migrate to digital banks.

Now the grand question remains, are traditional banks slowly getting extinct?

Our not so simple answer is Yes & No.

Yes because traditional banking in and of itself is not sustainable in today’s world. Banks that insist on customers coming into a physical location before they can complete a transaction will not last very long, as we can already see. Running a physical bank is expensive and this cost invariably ends up being passed to the customers. One of the perks of digital banking is not just the ease but the affordability. Reduced / non-existent transfer fees, free ATM cards, reduced interest rates on loans, and other perks that traditional banks simply cannot afford to offer. So yes, banks that do not fully incorporate digitized banking will soon be out to market.

On the flip side, we are beginning to see traditional banks launch digital arms and collaborate with FinTechs startups leveraging the trust they’ve built over time to offer new solutions to their current customer base. So, a lot of traditional banks are maintaining relevance by incorporating digital solutions to attract and retain the younger, more tech-savvy generation.

At the end of the day, technology is to the advantage of everyone and can be utilized by any organization looking to offer better, faster, and more convenient services to their customers.

At Advansio, we have spent the last 5 years helping organizations make that much-needed transition from an analog traditional business operation model to a more efficient digital system that saves the organization money and time and helps them keep customers happy and satisfied.

We have done this by building software to help companies digitize their operations, building mobile banking apps for several banks in Nigeria, and in the coming weeks, we will be unveiling the digital banks we built in collaboration with one of our clients. 

We envision a world where technology isn’t seen as a threat but a much-needed catalyst for improved and innovative solutions.

Hope you enjoyed reading this.

See you in our next blog post!

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