Digital Banking Tracker: Is Data The Great Bank Equalizer?

2017 could have some big changes in store for digital banking.

As the calendar turned to January, banks rolled out new ways for both commercial and corporate banking clients to conduct business by tapping the potential of several new financial innovations. These new tools, powered by artificial intelligence, greater integration with social media platforms and a digital-first approach to lending, are giving smaller financial institutions more weapons to battle their big banking competition.

Banks have also brought these technological advancements to new features designed to help consumers keep their New Year’s resolutions by living healthier financial lives. Several financial institutions last month rolled out new tools to help consumers monitor and control their spending or send money to and from any corner of the globe.

Notable news from the Digital Banking space

Banking has not always been a digital concept, but based on how they’re approaching recent tech developments, financial institutions are clearly becoming more comfortable in their digital skin.

Kasisto and Varo Money Inc. launched a new app-based chatbot that aims to offer consumers personalized insights into their spending. Meanwhile, competitors, including Zenbanx, ICICI Bank and HDFC Bank, gave customers the ability to send money, pay bills and use social media messenger platforms, including WeChat and Facebook Messenger.

But it isn’t just checking and savings account holders that are getting new features. Technological innovations are also bringing changes to the lending market. In Britain, for example, Atom Bank released a mobile-only mortgage service that allows homebuyers to upload their purchasing documents and share them using an app. Similarly, fellow British bank Barclays announced it would be offering an app-based small business loan service that can approve loans of up to £25,000 in less than an hour.

While community banks continue to struggle to compete with larger banks, these innovations could be starting to turn the tide. The availability of new data tools gives these smaller players new data insights into how to better help their customers, and for the January Digital Banking Tracker cover story, PYMNTS spoke with Q2 CTO Adam Anderson about how data platforms are helping community banks stay competitive.

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About The Tracker

The PYMNTS Digital Banking Tracker brings you the latest news, research and expert commentary from the FinTech and consumer banking space, along with the rankings of 138 companies serving or powering the digital banking sector.