What are Digital Banking, its benefits, and its future?:
Digital banking, the automation of traditional banking services, is the key to building loyalty, improving profitability and control. It redefined banking services by replacing the bank’s physical presence with an online presence and eliminating the customer’s need to travel to the branch.
With digital banking, customers can operate through a variety of secure digital channels while providing data security, which reduces risks and regulatory issues. This is done by integrating online and mobile banking services with the latest digital technologies such as analytics, social media, innovative payment solutions, and mobile technologies that exceed expectations, convenience, and customer experience.
The evolution of the digital bank
Technology has made unimaginable changes in the banking industry around the world over the past two decades. The internet and mobile access reach the most remote corners and connect people and organizations around the world. It has changed the expectations of the customer and the way organizations function.
With mobile connectivity and related infrastructure, fintech technology companies have entered the banking sector and introduced a range of customer-friendly products. To keep up, banks had to redesign their processes and products to retain their customers. This led to the introduction of ATMs, the beginning of digital banking.
The next step was to meet the new level of customer expectations. This has led banks to introduce better innovations, products, and services. In the early 20th century, banks provided 24/7 customer service using technology. Today, customers offer their banking services anytime, anywhere on their smartphones, without the intervention of banking staff.
In the digital bank, all records are stored in digital format, data is interpreted as relevant information by applying analytical methods, customer involvement is increased and more revenue is generated through specific customer interaction. All this leads to greater operating efficiency and better results for the bank.
The Indian government’s vision of a cashless economy has been accelerated by making internet access nationwide, and internet banking services are currently in demand due to Covid 19.
Benefits for digital banking
The purpose of the digital bank is to make life easier for the bank’s customers. Some of the benefits include:
• The convenience of staying home
• Availability 24 * 7 access to banking functions
• Bank without card
• Allows you to set up automatic payments for regular invoices
• Facilitate online payments for online purchases, etc.
• Expand banking services to remote areas
• Reduce the risk of counterfeiting money with digital bank transfers
• Strengthen customer privacy and security
• Allows you to instantly report and block lost credit cards
• Restrict the circulation of black money
• Reduce order entry
Digital Banking in India
From physical authentication to KYC in India, video authentication can be set by the market regulator for a better process. Several banks also offer digital savings accounts. Similar to basic savings, these accounts offer users a complete banking service, with no minimum balance, with a virtual debit card that can be converted to a physical debit card.
Some of the best digital balance savings accounts in India
• Ash deposition as soon as possible
• Digital Economy – DBS
• Kotak 811
• Bursaries and Insta Save FC account – ICICI Banking
• Indus Online Savings Account – IndusInd
The future of digital banking
According to the survey, a bank must have a fully digital bank
• The ability to request currency
• Customizable location options
• Card lock function
• Innovation in the safe
• Accounts linked to tax-exempt status
• Integration with capital investment channels
• Financial management analysis
• Grouping of accounts of different banks
• Easily accessible help
It will take some time before the physical bank of the branch can be completely replaced by the digital bank. Clients prefer human interaction when making important decisions, such as taking out a loan or negotiating terms. However, digital banking is useful for essential recurring banking functions. Since time is of the essence for customers and services, specialized digital customer service is as follows: