Global Digitization Is A Must

<p style="text-align: justify;">In the context of the global digitization of the economy and the development of alternative banking services, the transition to open platforms and their integration with the FinTech sector becomes relevant.</p><p style="text-align: justify;">There are four levels of integration between banks and FinTech companies: traditional banking, digital banking, open banking, and Open-X banking.&nbsp;</p><p style="text-align: justify;">At the current stage, the first three models coexist. Traditional banking includes classic banking services (loans, deposits, payments) for individuals and corporate clients and investment banking. Digital banking involves using various channels of banking services for clients, among which the digital channel plays a significant role.</p><p style="text-align: justify;"><strong>Open Banking</strong>&nbsp;</p><p style="text-align: justify;">Open banking is based on the bank&rsquo;s ability to engage non-banking intermediary ecosystems and third parties to the banking service provision and to interact with them through technologies such as Application Programming Interfaces (API).</p><p style="text-align: justify;"><strong>Open-X Banking</strong>&nbsp;</p><p style="text-align: justify;">The highest level of integration of banks and FinTech companies and the future development trend of the banking sector is Open-X banking.</p><p style="text-align: justify;">The main features of Open-X banking include sharing rather than sole ownership; information is a primary resource instead of tangible assets; partnerships between market actors are formed instead of developing the product independently or purchasing ready-made software solutions; focus on providing a positive customer experience from working with the bank instead of offering a specific product.&nbsp;</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="">Alaa Abou Elmagd</a></em></span> &nbsp;</p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Alaa Abou Elmagd</span></h3><h2><span style="font-size: 12pt;">1. What is the future of banking in the digital world?</span></h2><p style="text-align: justify;"><span style="font-size: 12pt;">Globally, digital banking users are expected to cross the 3.6 billion-mark by 2024. As technology and data analytics are growing, it will continuously enhance the banking methods.</span></p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. How can digitalization be improved in banking?</span></h2><p style="text-align: justify;"><span style="font-size: 12pt;">Digitalization can incentivize customers over their personal data rights, improve customer services leading to customer satisfaction and better the core banking ecosystems.</span></p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. What are the advantages of fintech?</span></h2><p style="text-align: justify;"><span style="font-size: 12pt;">Fintech can help in increasing customer retention due to its speed and convenience.</span></p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Alaa Abou Elmagd

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