The Rise of Hybrid Banking


With the rapid increase of investments in digital strategies in the financial services industry, banks and financial institutions (FIs) of today are finding themselves in an entirely new digital landscape. More and more customers are seeking the flexibility that allows them to obtain financial services regardless of where they are. This accelerates the growth of neobanks, in which they operate fully digitally with no physical branches.

Such circumstances lead to tougher competition, especially for incumbent banks, as the ever-changing demands of customers urge banks to become digital-first organizations. In 2020 alone, up to 40% of banks introduced contactless payments, and 34% implemented fully digital processes. This illustrates just how inevitable digitalization is when it comes to the financial services industry.

However, is going fully digital truly the best direction? What would be the more optimal concept that banks can adopt instantly?

Responding to current market demands by going hybrid

The concept of neobanks seeks to decentralize FIs by offering constant mobility to bank customers anywhere – this coupled with the continuous decrease of physical branches suggests that banks should minimize in investing in physical customer experiences.

However, research has shown that there is a general distrust among bank customers for neobanks. This is also supported by the fact that over 91% of customers still link a brick-and-mortar bank to their financing apps. This further asserted that while digitalization is taking over, modern customers still prioritize face-to-face interactions and physical engagements with the bank as it instils a deeper sense of trust and security within them.

Hybrid banking experiences are capable of fulfilling the needs of customers to perform self-service using digital channels, and also offering human connections that are highly personalized to their circumstances.  Essentially, hybrid banking combines both digital empowerment and human expertise onto the entirety of their customer experience.

What does the hybrid model bring for banks

The hybrid model allows banks the capacity to offer complex and varied products at competitive prices. Hybrid banks leverage digital systems which are generally more cost-effective than manual processes. By embracing AI automation, banks can complete lengthy processes such as loan approvals and account registrations, at a much faster pace.

The hybrid model gives banks the opportunity to get ahead of neobanks by capitalizing on capital and resources that are already available. This includes existing structures, finances and customer trust – all of which can be leveraged for hybrid banks to build an integrated, digital ecosystem that can anticipate customer needs accurately.


Humanize digital banking with the hybrid model

With the augmented growth of digital trends in the industry, bank customers expect their online customer experiences to match their in-branch experience. This poses a challenge to lots of banks as online interactions often lack the personal touch that physical engagements offer.

By adopting the hybrid model, banks have the leverage needed to integrate both digital and physical channels to produce a seamless omnichannel offering. Hybrid banking allows banks to implement virtual queuing, digital onboarding, and integrate other self-service channels into their physical branches with ease. Ultimately, it diversified the ways that bank customers can interact with FIs, while at the same time guaranteeing personalized experiences across all channels.

Enable hybrid banking with INFOPRO

With INFOPRO’s SYNERGi, rest assured that you can incorporate the latest hybrid model seamlessly with your existing legacy system. By coexisting with the old systems, banks can widen their offerings as they acquired the technology to adopt new digital banking services. Our advanced suite of technological solutions guarantees to empower hybrid banks in implementing the latest digital technology such as digital signatures, eKYC, and many more.

For more information on how INFOPRO’s panel of experts can help you digitalize your business, feel free to contact us.



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Block B3 Level 8, Leisure Commerce Square, No.
+60 (3) 7876 6666