Why digital transactions are becoming a disruptor of the new cashless economy

As our world becomes less dependent on cash, but more digital and technological, money flows through more advanced systems than ever before. Traditional banking methods are becoming obsolete as we develop into new areas with financial potential.

Digital transactions, such as peer-to-peer (P2P) payments and mobile wallets, have increased the movement of money fast, simple and safe than before. Digitization of financial transactions is driving rapid expansion into a cashless economy, enabling customers to conduct financial transactions with confidence without the need for physical or conventional banking products.

Transactions become disruptive factor of modern banking, and all trends in the sector are transforming to adapt to this changing ecosystem. Banks and financial institutions are increasingly offering digital capabilities as consumers demand a more convenient, secure and affordable digital banking experience. They also team up with Fintech companies to take advantage of technologies advanced solutions to improve customer service through state-of-the-art products in digital transactions and reduce costs associated with traditional banking products.

Separation basic banking transactions, banks are able create more efficient experiences for customers. In addition, it allows them to offer more personalized services and products through Application Programming Interfaces (APIs), making it easier to integrate with third-party services that can streamline digital transactions. Today, banks can offer their clients new, more personalized payment optionssuch as contactless payments, digital wallets, blockchain technology and even biometric authentication. This means that the unbundling of the banking core transformation of financial institutions entities that are more agile, resilient and able to meet the changing needs of their customers.

This new model not only creates an efficient operational structure for companies in the banking sector, it also opens up a world of opportunities to reduce costs and increase revenue opportunities. By fully digitizing transactions, banks can improve their data analytics and gain valuable insights into customer behavior to improve their products and services. Subsequentlymay use this information to offer more specific offers, such as discounts and personalized rewards.

New digital transaction technology it also helps banks reduce the costs associated with moving money between accounts, allowing them to offer lower transfer fees or even free transfers in some cases. This could help banks attract new customers who may not have considered using their services before.

As a result, digital transactions they also facilitate banks’ access to new markets. right inside Latin Americaalmost 60% of the population made digital payments in 2021. This represents a 23% increase compared to the figures recorded in 2017. In addition, it is estimated that almost a quarter of global fintech companies are currently located in the region. Undoubtedly, unbundling the core banking transaction is a fundamental step towards building a comprehensive digital ecosystem that creates positive outcomes for all stakeholders involved.

Financial institutions are increasingly aware that the key to surviving in a cashless economy is their ability to adapt and grow in the new digital space, offering clients secure options that meet their needs while laying the foundation for a scalable banking model.

Therefore, banks must be ready to invest in advances technology and digital infrastructure. They must have an agile approach to their business models, using the latest technologies and platforms available. This will enable them to create a seamless experience for their customers while increasing operational efficiency and streamlining processes that facilitate scalable growth.

This is why more and more organizations are opting for information processing platforms. digital transactions such as Frame Banking. As a cloud-native SaaS platform, Frame Banking offers risk-free, future-proof capabilities that enable financial service providers to accelerate their digital transformation. It is an opportunity to do things differently, to become pioneers of the banking experience which ensures agility, scalability, security and cost-effectiveness.

In general, it gives entities the ability to access new innovative services because they need faster payment processing times; greater data security; improve transparency and compliance with regulations; more information about your own accounts; more personalized experiences tailored to your preferences; or improved payment options.