What Is Digital Banking?

With the advancement in technology, a lot of the services have been moved to the internet where the customers can conveniently conduct those services from the comfort of their homes or when they are on the go. One of the sectors that have been taken online with the advancements in technology is the banking sector. Digital banking is the latest feature in the banking sector, which allows the customer to conduct their financial transactions through the internet. Online banking is also known as internet banking or web banking. Digital banking offers its customers almost every banking service that is traditionally available through a local branch that includes deposits, transfers and online bill payments.

A digital bank does not have any physical branches, they, however, may have ATM branches. Every transaction and financial activity will be done over the internet. A customer will not need to visit any physical branch for conducting their transactions, they will just need to visit the official website of the digital bank. Customers can conduct the financial transactions from the convenience of their home, at work or on the go. For conducting transactions through a digital bank, a customer will require a computer or any other device, internet connection, bank or debit card. Most of the digital banks offer basic services such as transfers and bill payments. Digital banks also allow customers to open up new accounts and apply for credit through online banking portals. Digital banking means digitization of banks and all of their activities, programs and functions. Digital banking is not just about digitizing the services and products. Digital banking is about the automation of every step of the banking relationship and goes way beyond the online or mobile banking platform. Digital banking is the digitization of all the traditional banking activities and programs which were traditionally available to customers when physically inside a bank branch. Customers can deposit money, withdraw and transfer money.

Benefits of digital banking:

• Agility:

Automated functions of digital banks are easily trained for performing differently and reacting to market changes. Digital banking will provide quick and simple process adjustments, fast product launches and quick adapting to the new regulatory changes.

• Viability:

Full transition to a digital environment is what a bank will need to survive and compete on costs and usability. Digital banking will allow a bank to offer services at the same quality level as a tech giant that is needed to reach a broader customer base and build close relationships with a client.

• Cost reduction:

Digital banking helps in saving operational costs that can be achieved due to the automation of functions, processes. It eliminates the costly back-office processing operations which lead to a few errors and requires less staff.