Digital transformation is a process which organizations undergo to bring about change in the use of digital technology and its impact on the lives of people, work and society. It is more than just providing online and mobile functionality and is now considered one of the primary elements for survival of businesses in every industry in the world.
The digital movement has affected organizations’ traditional methods of conducting business and has raised the customer expectations regarding the end product and services offered. Today’s consumers compare their experiences with competitors and it is imperative to meetthese new customer demands and expectations to attract and retain clients.
Digital Transformation in Banking
The financial sector is not free from the repercussions felt by the global digital wave. The first digital value add was SMS banking in 1999. After nearly two decades, the following services are now offered:
In contemporary society, it is safe to say people use their mobile phones “all the time”. Smartphone usage in the past decade has seen an exponential boom. Everything is now available on a user’s finger tips and that is mainly thanks to the wave of digitization sweeping the world.
Practically 25.5 million people, 70% of the population, in Canada is currently using a Smartphone and this number is said to increase to 32.5 million by the year 2020.
Around 1995, when websites were just gaining popularity, it was a common question to ask if your company needed a website or not. Now it seems silly to even question if a brand needs web presence. 20 years ago a brand did not need the internet like they do today. It is a norm now and back then they were only ideas. And this is where we stand today with mobile apps.
Growing Popularity of Apps
Smartphone users spend about 90% of their time on various apps, making payments, shopping, socializing, making bookings and even surfing for the latest updates. Mobile friendly websites are helpful, but they do not offer the same user experience. Also limitations from the mobile browser could even lead to a negative brand impression.
We live in a digital age, where our phones serve a higher purpose than only making calls. Nowadays, everything is done via the click of a button on a smartphone. Complicated and sometimes guileless processes are accomplished within seconds with the help of various apps like banking, investments, payments, booking services, travel planning, ordering food and even reading a newspaper.
The number of smartphone users in 2018 was 2.58 billion, worldwide. This number is going to increase and by 2022, Canada alone will have approximately 30 million smartphone users.
Today, there are various platforms on which smartphones run and the largest competitors in this market are the iPhone and Android phone. Each smartphone has a different operating system. For example:
There are various types of apps which can be created for use on smartphones like native, hybrid and web. It is often difficult to choose a development approach as the lines between various options are starting to blur.
The mobile application market is growing at an exponential rate. Thousands of new applications are added to the market every single day. The apps downloaded today entertain the user, help them connect and socialize with people in the vicinity and also share details about their lives and photos online.
These applications allow us to do everything from mobile banking, shopping to controlling automated home technology. In 2018, nearly 200 billion apps were downloaded worldwide. By 2020, it is said the apps industry alone will generate about $190 billion, if not more.
Everything is done online and unfortunately this technological upgrade means a lot of personal user activity and information is vulnerable. Data like a user’s address, contact number and sometimes even location apart from banking information and credit card details are within the apps.
A single lapse in security and all this information is available to the cybercriminalsand hackers. Ensuring this data’s security is key and the responsibility of the same must be taken by the app development company.
The internet has played a colossal role in this era, whether it’s related to personal lives or business lives. We are existing in a digital world where digital services are part of our daily lives from ordering food, booking transport, trading stocks and even banking.
“Mobile devices, high-speed data communication, and online commerce are creating expectations that convenient, secure, real-time payment and banking capabilities should be available whenever and wherever they are needed.” - Jerome Powell (Chair of the Federal Reserve, USA)
Banking services are being digitized for identification of customers, providing customized services, automate minor tasks as well as prevent fraud and theft. In order to do so, digital banking has used pins, passwords and has now turned to biometric technology, which has become an integral part of online and mobile banking.
One of the main concerns of digitization is the security threat which comes with it. Malicious software, spyware and viruses are said to have increased by 54% which threaten not just laptops but mobile phones as well.
Why Digital Transformation?
Today's customer is digital-savvy and likes to be served on the device of their choice, from anywhere expecting round the clock responses. To meet the needs of these new age customers, companies are transforming their ways of doing business. Like any other revolution, digital revolution is comes with many challenges and tremendous opportunities. Are you ready to win or even survive in this new digital age?
No company is immune to this change as we have seen diverse industries being disrupted at an unprecedented pace by companies like Tesla, Airbnb and Amazon. Today every company needs to embrace digital transformation to become a tech company. Digital revolution is unstoppable. The only questions remaining are:
“More than 90% people start with online search before they make a buying decision…Going digital provides you an opportunity to get in front of these people who are planning to buy something that you may be selling"
“89% of enterprises have plans to adopt or have already adopted a digital-first business strategy with Services (95%), Financial Services (93%) and Healthcare (92%) leading all industries. Education, high-tech, manufacturing, retail, and government are also quickly adopting digital-first strategies to improve process efficiencies and meet and exceed customer expectations.”
What is Digital Transformation?
Digital Transformation has many definitions. App-scoop defines it as a process of making a giant leap in business effectiveness by incorporating today's cutting edge technologies such as Artificial Intelligence, Smart devices, Internet of Things, Augmented Reality, Blockchain and so on.
Banking is the one industry known for their limited hours of operation. This would be wearisome as formerly, it would be necessary to go to the bank for something as simple as checking the account balance. The unending lines, long wait for information and sometimes being given the run-around by staff.
In today’s world, with all the digital advancement, customers do not need to physically go to a bank to complete transactions anymore. This is a boon as it saves time and transactions can be completed, bank statements checked, money transferred and more, all with the click of buttons.
The world of banking has gone mobile and most people complete all transactions using their banking apps on mobile devices. This trend has been on the rise and the banking industry needs to adapt and advance to deliver a smooth and satisfactory experience to the customers they no longer interact with.
Nearly 68% of Canadians use mobile banking on a weekly basis and only 16% are said to actually visit banks. The Canadian banking industry would needs to take appropriate steps to ensure customer needs and demands are met. They would need to adopt digital transformation programs, focusing on mobile app enhancement and development to provide a seamless banking experience.
Imagine having to take time out during a busy day, to go stand in line to buy tickets to an event. Now imagine that after standing in line for nearly an hour just when it is your turn the tickets are sold out. All that time and energy wasted plus the added disappointment of a failed attempt to book tickets.
Advent of the digital age has seen a revolutionary change in the trend of making bookings. Now, there is no need for people to stand in line and wait for their turn to book any kind of tickets or services. The advancement of technology has made it possible to book, cancel and reschedule things with just a few simple clicks of the button.
Revenue generated from event tickets alone will see an increase of 9.3%, which amounts to north of $100,000 million by 2023. The reason for this tremendous increase is the simplicity of the task right from finding the desired event to making the booking and payment.
The demand for ticket distribution systems will keep rising as the number of users keeps increasing as well. Given below are a few platforms which help event promoters optimize and sell tickets globally:
Mobile app development has been on the rise for a decade now. As opposed to what was assumed, it was not a dream which fizzled out, but a trend which shattered the glass ceiling. According to Statistica, there were 2.1 billion smartphone users in the world (in 2016) and the revenue generated by mobile apps was about 60 billion dollars. By the year 2019, it is believed that the number of smartphone users will be 2.5 billion if not more.
Mobile app culture is something all smartphone users have got accustomed to, from their wide range of virtual or augmented reality to location based services. They are used on a daily basis for something as simple as ordering groceries to booking cabs to even planning vacations. These apps are not only efficient but also customise preferences as per each user.
The past year alone is said to have witnessed about 27 billion mobile app downloads. This upward trend of mobile apps has made the developers come up with renewed novelties to keep up with the current trend and user’s interests.
The year 2019 will witness innovation of existing apps, going a notch higher and giving the mobile developers more mobility to focus on app niceties. Let us take a look at which mobile app development trends will enrich the realm and directly impact the industry in the following year:
“The only constant in life is change” – Heraclitus
In today’s day and age, business scenes are constantly evolving to keep up with the dynamic changes, in the environment. We can see digital technologies are changing the facade of business at an exponential rate. Organizations need to keep up with these changes in order to survive and grow. An organizations IT strategy is vital to its business strategynow more than ever.
Digital technology has reached a point of omnipresence and it is no longer optional for a company to be digital or not. The world has had over 4 billion internet users in 2018 alone. Studies have shown that there will be a growth of nearly 800% in mobile data usage in the next year or two.
In such scenarios, a digital transformation is paramount in the company’s vision for its future and growth.
What is a digital transformation?
“The way out of these difficult times is not cost cutting. It is to innovate and embrace digital transformation.” – Steve Jobs (Apple Co-founder).
Digital transformation is integrating digital technology, into all areas of business, which fundamentally changes how you operate and deliver value to customers. Digital transformation, in other words business transformation, is driven by technology innovation, customer behaviour, demand and satisfaction and external environmental factors.