Digitization in Banking: Learning from Blockbuster’s Fall
The digitization of banking resembles the Blockbuster story — evolve or vanish. Traditional banks that failed to adapt to changing consumer needs risked irrelevance, while digital banking solutions technology and transformed financial services forever.
A Shift from Tradition to Transformation
Traditional banking once symbolized trust through physical presence. But limited access and slow services made it unsustainable in a fast-paced world. The pandemic accelerated this change — forcing both consumers and banks to explore digital alternatives. The result was a massive adoption of mobile apps, neobanks, and AI-driven platforms offering instant, secure, and convenient services.
The Digital Banking Evolution
Modern banks are evolving from product providers to platform orchestrators. According to KPMG’s Future of Digital Banking in 2030, banks will soon deliver hyper-personalized financial and lifestyle services through AI, automation, IoT, and open banking. Future banks will embed themselves into consumers’ daily lives — anticipating needs, offering proactive advice, and replacing traditional products with integrated “super-app” ecosystems.
Benefits for Consumers and Businesses
For consumers: 24/7 access, faster loans, secure transactions, and personalized services. However, data privacy and unbanked populations remain global challenges.
For businesses: Digital banking boosts efficiency, reduces costs by up to 40%, and enhances fraud detection through AI. With mobile wallet transactions crossing $2.25 trillion, companies now reach wider markets and enjoy smoother operations.