Therefore, today the entry channel is just a smartphone for carrying out transactions, operations and customer service, without the need for an agency.

In this way, the technology simplifies the interaction between bank and user, managing to transform a relationship between the application and the customer. By the way, this practicality is similar to delivery services, transportation, video streaming and many other digital advances.

Rise of digital banks

In short, the pioneering fintechs in the market were born in 2013, following innovative projects and models for the time. Low cost and digital distribution, they already had the purpose of restructuring the relationship and customer experience.

However, this changed with the pandemic scenario, which came to light in 2020, imposing digital distancing and making it impossible for the client to go to an agency. The situation has made digital banks gain more and more space in the market.

According to the Central Bank, at least 40 digital banks started their activities last year. This is due to a number of factors that contributed to the growth of the sector, such as government aid, the implementation of Pix and Open Banking.

On the other hand, there are peoples who are still suspicious of the security and potential of digital banks. A survey by Febraban pointed out that 70% of peoples do not trust banks, much less fintechs.

With that in mind, Wagner Martin, director of business development at Veritran , highlighted 4 aspects that can be considered when selecting a digital bank:

1 – Digital Onboarding

Given that agility is the main motto of fintech, this is due to digital onboarding, which characterizes a process that involves the initial stages of contact between the customer and fintech. Therefore, in the case of digital banks, the institution must offer security guarantees to users.

In addition, the account opening process consists of simply using the smartphone and making its data available to the user. Although, there is biometric verification, which has a technology capable of validating the documentation, ratifying it with a governmental entity.

Therefore, the security of digital banks is based on the rules of traditional institutions, which also provide data protection to prevent money laundering, fraud and/or criminal activities.

2 – Authentication by facial biometrics

Thus, with the arrival of digital banks, modern cybersecurity has transformed facial biometrics into an indispensable tool when it comes to the security of operations. However, most cell phones already offer this function, and now, these features are being incorporated into banking services.

In this sense, physical tokens, passwords and other resources adopted by traditional institutions for years, currently, have been left aside, to avoid headaches and simplify people’s lives.

In summary, facial biometrics make it possible to authenticate the customer’s identity, who, through a simple facial scan, can log into the platform, authorize an operation or even make a payment.

3 – Geolocation

The geolocation function, on the other hand, represents a valuable tool to collect more specific and culturally contextualized information about users, facilitating the relationship between the bank and the customer.

In this sense, location provides two essential benefits. As well, it allows the customer to continue generating trust and the ease of personalization of the financial experience.

4 – Personalization

A practice that digital banks have integrated since the beginning is personalization. Whereas, this practice has turned all customer interactions into useful new functionality for each particular customer.

In this sense, digital banks have simplified the understanding of finance, adding information tools that are easy to understand. Not just a static balance and movement counter that doesn’t predict or provide valuable customer information.