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Many things have changed in the past decades, but one of the most important changes has been the digitalization. Hence, most daily activities have become accessible through the use of digital assets, such as the internet, social media or even built-in apps specifically designed for fulfilling certain needs.

With that being said, one has to take into account that the world of banking is changing too. We are a fast-paced society, we have become somewhat impatient and standing in line at the bank is no longer acceptable, especially for the youth, more specifically Gen Z-ers, those born between 1995 and 2010. Most of them have been born with a smartphone almost attached to them, which has to be taken into account and used as a growth tool for companies looking for new business ventures.

As a result of all the above, the need for ingenious alternatives has increased. There are a few notable, successful attempts that have occurred.

A notable example on that matter would have to be LIV by Emirated NBD Bank - an app tailored for young audiences, which focuses on lifestyle first and banking second. With the development of non-tangible currencies and assets, the young have stopped paying attention to the outdated style of banking. Thus, this International Bank for the so-called Digital Natives has managed to acquire more than 300.000 customers in 2 years, by catering for their target customers’ needs. LIV, however, is just one example that emphasizes that creating new business models and revenue streams is doable, as other successful digital banking initiatives include FRANK, ZAK or imaginBank, which are all worth looking into, with the scope of having a better understanding of the digital banking phenomenon.

There is no secret that technology as a whole is starting to take over our lives. On that account, emerging technologies have started to gain importance within the financial industry. An interesting example is Blockchain technology, the underlying technology of Bitcoin and other cryptocurrencies. Its potential is starting to get noticed just now, but due to its emerging success, even central banks are considering  digital currencies. This is another way of creating new business models and revenue streams, as this type of technology brings along various services that are needed, hence, creating even more business.

Last but not least, one has to be aware that in spite of the advantages of digitalization and the use of emerging technologies, there are still many downsides to it. A recurring challenge is encountered when displaying transactional data, which often leads to the need of collecting data from different pre-existing systems and, in the worst possible case, to using ’’traditional’’ methods, such as paper-based records, spreadsheets or databases.

But there is no need to worry, as, ultimately, digital banking apps, blockchain technologies and internet-based platforms are user friendly and consumer-oriented, and the main purpose is making everything more accessible and less centralized.