Digital transformation is a term that we’ve heard a couple of times before. It’s an online phenomenon that’s happening at an unprecedented level. This paradigm shift is happening to almost every industry globally and connecting us faster than before—a massive advantage for us during the pandemic.
An Increasingly Digital World
The world is increasingly becoming more digital than ever before. Almost everything can be done digitally, from purchasing groceries to banking. Online presence is also even higher than before, with over 3.5 billion people using the internet, almost half of the world’s population. On average, these people spend about one to two hours delving the internet, while another hour is dedicated to digital entertainment such as video games.
There is one primary reason why the world is becoming digital: anything is possible online. The accessibility of the internet is reaching far and wide. What makes this so unique is that the digital world has just begun, and the internet’s story is only at its starting point.
There is so much potential in the digital world, and one can argue that there are more opportunities found digitally. However, the internet’s accessibility isn’t the only reason our world has become increasingly digital. The pandemic has something to do about it as well.
An Inevitable Transformation
Many argue that the digital transformation that our world is experiencing is due to the pandemic. That’s undoubtedly true, and it can easily be the catalyst of this transformation. However, many experts argue that it’s an inevitable transformation. One way or another, we would reach this point.
This inevitability means that businesses in various industries have to adopt digitally or perish. Some essential industries have already made their transformation. However, one crucial industry that is still transforming its structure into digital is the banking sector.
Banking is an important daily transaction. Millions of Americans perform this transaction every day. Without it, our society would collapse under the pressure of the pandemic. It almost did when the pandemic hit the country and people didn’t have access to physical banks. Thankfully, access to online banks was possible, which was enough to save the country’s collective sanity.
Online Banks
Online banks are increasing in numbers. There are about 60 nationally available banks and even more online-only banks. This can service millions of Americans, which is essential during the pandemic.
Estimates have found that about 250 million Americans were using online banks. This number is expected to reach 279 million by 2024. However, some experts argue that this was a conservative estimate. Some claim that more than 300 million Americans would be using online banks by that year since more and more people are opening up bank accounts.
This unprecedented growth of online banks means that many more have to adapt to the internet. Banks are doing it by investing billions of dollars into cybersecurity and other online essentials. Through this, the sector is transforming slowly but surely and can accommodate more people than ever.
Online Lenders
But it isn’t only banks that have made the transitions but also dedicated lenders. Many mortgage lenders are now making themselves accessible through their dedicated websites. These websites offer a lot more services than ever before, with some even offering mortgage calculators for people to use.
Home-buying is on top of every person’s list in the US, despite home prices reaching the $400,000 mark. This makes home loans a lot more crucial in every purchase. Moreover, these loans need to be accessible since visiting the lender is no longer an option during the pandemic.
Many lenders have performed a digital transformation by creating a website of their own or joining various third-party sites that can promote their services. This is a massive deal for the market, as now lenders are more accessible than ever.
Big Data
Lastly, we have big data. Big data is the main sign of the banking sector’s digital transformation. Many banks utilize big data to analyze statistics, perform consumer rankings, and even make crucial decisions for their future. Moreover, big data is also being used to gather necessary information vital to daily bank transactions.
Big data is the main symbol of digital transformation. As a result, more and more banks are starting to see the advantages of big data on their side. This is why this digital software is becoming an essential investment for every bank in the US.
The banking sector is now becoming digital through the applications mentioned above. This is crucial not only for the sector but for society as a whole. Without digital transformation, we won’t have access to our accounts due to the pandemic. This can pose a dangerous risk for our economy and national security.