Digital banking is a banking solution available online i.e., the banking services are conducted through the digital banking route by discontinuing the requirement for documentation and paperwork for different banking activities. In the present-day scenario, digital banking has thoroughly changed the manner of banks as via this route the transactions can be performed at an increased speed with ease.
Digital banking assists financial institutions to ameliorate customer services. Digital banking has eliminated the requirement for traditional banking chores and has entered the online phase. Previously, the services were just available to you when you visited the respective bank branch. For instance, consider if you have accounts in Kotak Mahindra bank and IndusInd bank. So, for any banking activities previously when there was no technology in the field of banking, you were supposed to visit as per Kotak bank timings and IndusInd bank timings to complete your banking chores. However, now with the acceptance of digitization and enhancement in technology, most banking activities can be conducted through the net banking route without the need of visiting a bank branch.
What are the reasons for you to opt for the digital banking route?
Change in customer preference from offline services to online and mobile banking has resulted in the adaption of the digital banking route. Initially, most banks and financial organisations struggled in adapting to the online banking route. However, owing to the enhancement in customer demand, banks now consider investing in digital transformation.
How can you bank digitally?
You can perform digital banking in the following ways –
∙ Mobile phone
∙ Computers and laptop
Digital banking in the banking field
Digital banking now is playing a crucial role in the banking field. Mentioned below are the reasons why digital banking is extremely necessary –
∙ Assists in cost reduction
∙ Enhances revenue
∙ Explores brand-new technologies
∙ Improves customer experience
Digital banking today is helping financial institutions in the complete digitalization of all programs and activities. To ameliorate customer experience, basically, digital banking depends on big data as well as analytics and ameliorated new technologies. Moreover, to explore the benefits of new technologies in the field of banking i.e., APIs, a blockchain full digitization is a must. Digital banking offers a simple and quick process adaptation in the banking field.
Different benefits of digital banking
Transfer of funds is one of the most crucial benefits of opting for the digital banking route. The fund transfer option eliminates the hassle of issuing a demand draft or cheque. Via digital transfer, you can transfer your fund from your account anywhere. Fund transfers may be done through the IMPS (immediate payment services), RTGS (real-time gross settlement) and NEFT (national electronic fund transfer). Mobile banking app is one of the best apps for an easy and quick route for transferring funds.
Simple access to accounts and their details
Through the digital banking route, you can simply access your account and your details. Moreover, you as a customer can download your bank statements and mini statement for the required duration without the need for visiting your bank branch. Via the net banking services, you can access your saving or current account at any time and do your required transaction.
Through digital banking now, it is simple for you as a customer to keep thorough track of your transaction and get any account-linked info within a few minutes. For maintaining account security, banks even send a message alert after your fund has been debited from your account.
You can easily withdraw the amount of your choice with the assistance of a debit card without the need of visiting the bank. With ATMs located everywhere, it is easy for you to withdraw the required cash from anywhere at any time. You can check your account balance through net banking by logging into your net banking account.
With digital banking, now you can pay your bill very easily. Bill payment of your electricity bills, mobile bills, gas bills etc., can be performed easily. Also, you can recharge your prepaid phone through UPI apps like Paytm, Phonepe, or Google pay or use the net banking route as per your preference or choice. Moreover, the auto deduction facility too can be activated if you do not want to manually perform this work. By enabling the auto deduction facility, your bill amount is deducted automatically on a specified date from your bank account.
Meeting your expectation
With the rise in globalization and competition, every bank is looking at the digital banking option for mitigating your requirements and demands. Banks are trying to satisfy the modern legacy system by ways of forming digital potential and by concentrating on core banking aspects. Digital banking involves virtual banking, internet banking and e-banking.
Through mobile banking, you can conduct your banking transactions without the need for visiting the banks. Via the mobile banking facility, you can transfer your funds, invest in a fixed deposit, and can even pay for your different bills, even while traveling. Most banks have created mobile apps for enticing more and more customers and simplifying the process of banking on a daily basis.
Issuance facility as well as stop cheque facility
Digital banking offers you the facility through which you can apply for the issuance of cheques even without the requirement of visiting your respective bank. Additionally, it even happens that you might need to stop your issued cheque for a specific reason – like you wrote an incorrect amount or mentioned the incorrect beneficiary, etc. For all this purpose, digital banking has come up with a stop cheque feature. Activating this feature, allows you to stop the processing of a cheque after you have issued it.
What are the risk parameters involved in digital banking?
No doubt, opting for the digital banking facility offers you numerous opportunities for ameliorating your efficiency at banking, but there may be a few risks associated with the same. These may include –
∙ Complex process to execute as well as understanding it may not be simple for less tech-savvy individuals
∙ Tough in retaining customer satisfaction and trust
∙ Various legacy podiums which may be tough for the common individuals to understand
∙ Risk management obligations
Thus, after you have opened an account, say, you have opened a Kotak bank savings account, consider assessing the benefits and drawbacks of registering for a net banking account. Note that, while opting for the net banking account may eliminate the requirement to visit the bank during the Kotak bank timings for banking work, as it is technology-oriented for conducting various banking transactions on the online platform you have to be well-versed with the steps. You can only be well versed by properly reading the terms and according to executing the mentioned steps.