Digital Finance: Examples and Benefits – Press Releases

The following text is taken from the press release and in no way reflects the opinion of the editors.

  1. What is digital finance?

Digital finance is the process of transforming traditional banking and financial services through the use of new technologies. In particular, the use of digital products and tools to provide financial services.

What are some examples of digital transformation in finance?
As in most sectors, the digital transformation has also had a significant impact on financial services. The following are some examples of technologies and solutions that help digitize financial services.

Extended use of mobile / online banking
Digital banking is not a new concept. In fact, it has long been very popular with young audiences. But recent events have dramatically expanded the use of online banking. When it was no longer possible to enter their bank branch, more and more customers turned to digital banking. As a result, more and more people are familiar with digital transactions, such as online payments and transfers, and have even begun to prefer them.

The emergence of applicant banks
In recent years, other so-called applicant banks have emerged. These are fully digital banks, without a physical branch. They challenge traditional banks by making customers’ work smoother: from easier account opening to better functionality with more attractive commissions and rates. Among these contender banks are Revolut, Lunar and Monzo.

Fintech solutions
Fintech is also changing the financial services market. They offer a range of digital services: cost tracking, budgeting, customer service chatbots, and more. As more and more financial institutions rely on fintech solutions, these companies have played a key role in the digitalization of financial services.

Digital investment companies
Algorithmic investment management and digital financial advisory platforms are also gaining popularity. Their ease of use and ability to offer more attractive commissions are just some of the reasons why more consumers prefer them than traditional investment firms.

blockchain technology
Another technology that stimulates the digitalization of finance is the blockchain. It offers new opportunities to identify, record and store assets digitally, as well as to change the way people invest their resources and trade in the markets. Blockchain continues to expand, and its impact is expected to become even greater in the future of financial services.

  1. What are the benefits of digital finance?

1. Increased efficiency
Digital tools have been created to help us work more efficiently, eliminating time-consuming manual operations from the equation. By relying on these decisions, employees of financial institutions such as banks, pension funds or insurance companies increase their productivity and focus more on value-added tasks.

2. Increased security
The financial industry is fairly subject to security and compliance requirements. He often processes and processes confidential information. Most digital financial instruments are designed with these requirements in mind, making them a good choice to meet the needs of financial service providers.

3. Improved customer experience
Today, customers expect a seamless digital experience by default. Their interaction should be easy and convenient. As the market becomes increasingly competitive, financial institutions must invest in digital tools to satisfy their customers and provide the expected level of service.

4. Perspectives and analyzes
Financial service providers typically have access to large amounts of data and process it with great potential. But without tools for its analysis, these data are of little use. Digital solutions provide financial institutions with clean data and useful ideas that can be used to identify new business and development opportunities.

  1. How Penneo is helping financial institutions in their digital journey

At Penneo, we have developed two solutions that help financial institutions automate some of their most time-consuming customer-related processes: joining new customers and documenting transactions.

Penneo KYC automates manual work to adapt new customers and start the KYC process. Our system guides users through the entire process, from risk assessment to requesting documentation and secure storage. At the same time ensure compliance with anti-money laundering legislation.

Digital finance: examples and benefits