We’ve seen a tremendous change in the banking industry over the years. Customers used to regularly walk in and out of bank branches to deposit cash, withdraw money, transfer funds, seek information about products and services, etc. But today the scenario has changed. The advent of technological advancement introduced us to digital banking. Today, a large part of the customers have switched to digital banking for performing basic transactions, transferring money, paying bills, managing investments, etc. This has led to the popularity of digital banking. One of the reasons for its popularity is that it is an omnichannel platform that allows the user to perform various tasks under one roof. This is unlike the traditional banking where the customer had to go to different departments for getting different jobs done.
What is digital banking exactly? Digital banking and online banking may sound very similar; they are actually different. While online banking only deals with the essential transactions that most people will need to manage their finances seamlessly, digital banking provides a lot more. In short, digital banking has all the same functions as a head office, branch office, online service, bank cards, ATM and point of sale machines.
Benefits of Digital Banking –
Banks all over the world have realized how investment in digital technology can help them and their customers.
- Onboarding – Digital banking makes the onboarding process a lot easier for the customers as well as the bank employees. This is possible because of the complete mobile process enabled by advanced technology. Traditionally, while opening a new bank account, the customer is asked to provide a number of documents. But while opening a digital bank account, the customer can directly upload these documents using their phones which saves time and hassle for everyone.
- Customer Service – With internet freely available everywhere, customers have access to digital banking platforms. This saves their time and expense of visiting the bank physically. This growth of digital users has also led to better customer service in the banking sector. The availability of real time customer support has made the lives of the customers easier and simpler.
- 24*7 Availability – Thanks to digitization, customers can access their accounts at any time of the day and from anywhere. One can open demat account or transfer money easily without having to stand in long queues.
- Managing accounts – Mobile applications for digital banking have made managing a bank account super convenient for the users. One can even manage multiple accounts under a single app. Users can easily track their finances and plan and make budgets accordingly.
- Pay bills online – The user can use their digital payment bank account directly to make payments online. This eliminates the risk of losing the physical check. It also helps in tracking payments. Some banks also allow setting up automatic recurring payment at fixed time intervals.
As the saying goes, ‘Change is the only constant’. Banking institutions have adopted this saying and are evolving along the emerging technologies. This has made banking much easier, secure, time saving and cost effective for everyone. The digitization has brought banking at our fingertips, literally.