Digital banking market trends you need to pay attention to

Over a quarter of the UK’s adults have shifted their banking service to digital-only; three times more than just two years prior. The trend towards digital is significant across all age groups. While the 18-35 bracket has the highest usage of digital banking and payments, ages 55+ have also reported an increase in using more digital services. While this change was spurred on by the pandemic, growth has continued after restrictions have been lifted.

In banking, the shift from branch-centric service to digital-native solutions is where the evolution is happening. Since 2015, more than half of the UK’s bank branches have closed due to resources being shifted to a digital offering.

With digital banking constantly evolving, key trends provide us with insights on how the future will take shape.

Digital banking technology trends

Digital transformation is how the industry will continue to evolve to meet the needs of the masses. Consumers expect instant results for applications, and the technology to facilitate the demand is available. Applications can be done in a number of ways, however key focuses industry-wide are on data-driven insights on customers, artificial intelligence and blockchain technology.

Digital transformation trends in banking

Utilising customer data

Harnessing customer data to recognise and predict trends in spending and saving behaviour is invaluable to financial institutions. Unifying a range of data streams about customers provides insights that allow decisions to be made across a financial institution.

For example, credit unions can set bespoke risk appetites to their products based on their own customer behaviour. Industry-wide averages can skew results, and relying on internal data sets can truly enhance customer experience. This increases trust from members, and rewards them for positive financial behaviour.

Artificial intelligence

Artificial intelligence allows financial institutions to improve the overall customer experience. By setting parameters and automations for integrated software, services can be streamlined. This allows for personalised service, risk mitigation and bespoke setup from decision makers.

Customer satisfaction increases when they feel that their unique needs are met quickly, and AI is a way to achieve this. Creating an ecosystem of automated integrations that work together seamlessly ensures a full service is met.


Blockchain is the foundation on which digital transformation is built. It’s a much faster, more secure way of making digital transactions. It can also cut transaction costs drastically; by billions each year.

Digitalisation in credit unions and building societies

Credit unions and building societies have a huge opportunity to streamline services. Empowering members with technology that allows instant decision-making frees up employees to focus on delivering the personal service these smaller institutions are known for.

Individual institutions can implement changes much faster and cheaper than larger scale operations, and provide a personal service on getting to grips with the changes.

Optimus works with credit unions and building societies of all sizes to offer bespoke solutions tailored to the needs of their business and their members. Get in touch to learn more.