Banking is one of the fastest growing sectors. The new oracle added to banking is internet banking. Today almost everyone has shifted to the digital banking system. With the introduction of PhonePe, GooglePe, Paytm, Amazon Pay, etc., consumers have found all convenient options. At such a time, traditional payment methods are declining.
Consumers today prefer the fastest method of payment. The method should be fast, secure, and seamless. There are a huge number of companies offering the same services. Hence consumers can choose whatever suits them.
This keeps the companies always on their toes to perform better. Competition is very high in the digital banking industry. Every day, companies are introducing new features to make banking seamless for customers. With such luring advancements, customers switch options frequently.
P2P payment apps have become very popular over the years. For example, Bank of America recently reported that payment through the P2P payment app Zelle has increased by 26%.
The biggest problem in the digital banking sector is still fraud. Experts claim that there is a 41% increase in fraud attempts per year. From opening mule accounts online to double depositing checks. Scammers keep finding new ways.
When we take SMB owners into the picture, we realize they are in a more vulnerable state. These are businesses with limited resources. But they are equally prone to fraud. Moreover, since people no longer prefer traditional payment methods, the situation becomes even worse.
Customers have made a smooth switch from cash and checks to online banking. From traditional payment methods to P2P payment apps. The swift is huge. But their concern is the security of their data and their money.
Customers demand speed, seamlessness, and security for their digital payments. As a result, FinTechs and banks are even eager to provide this service to them. But the challenge still is the payment verification needed. Along with it, they want to ensure fraud prevention.