The 21st century has been an era of revolution and just like any other revolution in the history of mankind, this one is also bound to bring with it unimaginable progress and unfathomable changes.
If there’s one word that aptly describes the rapid advancements of the present era, it’s digitization. Rapid advancements in the field of technology have completely changed the way we handle everyday chores. Everything is now done online, from buying groceries to setting up businesses.
As this wave of technology continues to sweep our daily lives; and digital transformation takes over various medium and small-scale businesses, why should banks be left behind?
This digital revolution has been instrumental in introducing the world to a new way of banking popularly known as digital banking.
Impact of digital banking on the world.
Digital banking refers to the digitization of all traditional banking activities and programs that traditionally were only available to customers when they physically visited any of the bank’s branches.
Right from keeping a tab on the account balance to selecting the right investment plan, to bill payments, everything is possible with the click of a button. The introduction of digital banking has made life hassle-free for its users. While traditional banking services were time-consuming and taxing, digital banking is quite the opposite.
With the introduction of digital banking, customers no longer have to take time out of their busy schedules and stand in long queues at the bank for something as simple as a cash transfer. All that is needed is a mobile phone or a computer and a few clicks to get the job done.
Features offered by digital banking
Apart from conventional banking services, digital banking also provides a host of other features that gives it a clear edge over the traditional banking systems. Here are some of the most important features of digital banking that has had a positive impact on its users:
1. Online Banking
Online banking allows customers the luxury of banking anytime, anywhere. From fund transfer to viewing transaction history or bill payments, everything can be managed from the comfort of one’s home using online banking services.
2. Digital Wallets
Gone are the days when people used to carry cash to buy things. Using a digital wallet, customers can now purchase anything of their choice and pay conveniently using their smartphones. This method of cashless payment is user-friendly and saves time since customers don’t have to wait in long queues.
3. Mobile Banking
Mobile banking is a service provided by banks that allows its customers to access the various banking facilities from the comfort of their homes. Compared to traditional banking services, mobile banking is super convenient and demands minimum effort.
4. Automatic bill payments
The process of bill payments has become effortless with the introduction of digital banking. These days banks allow customers to create and manage billers by linking their credit cards and other bills directly to their bank accounts. This helps the users in making timely payments and avoiding penalties or interest charges on their credit cards or electricity bills.
5. Unified Payment Interface (UPI)
Unified Payment Interface or UPI is an instant real-time payment system that facilitates inter-bank transactions. Through UPI, customers can now easily transfer funds from one account to another. They just need to register once, create their UPI ids, and link their bank accounts with these UPI ids to start transacting.
6. Personal Financial Planning
Through digital banking services, banks also provide various financial tools to their customers. These tools include loan calculators, budgeting and taxation tools, etc., which help customers in financial planning without personally visiting the banks.
7. Secure Message Alerts
Through secure message alerts, customers are notified every time the slightest change is made in their bank accounts. These alert messages help banks to shield their users against suspicious activities, frauds and provides an added sense of security.
8. Dedicated Remote Advisors
To make the banking experience convenient for all its customers, banks assign a digital relationship manager who assists the customers in resolving their queries at all times. This digital convenience makes the banking experience efficient and burden-free for all its customers.
These features establish how digital banking has an edge over the traditional banking system. As the advancements in technology continue to reach new heights, digitization is bound to happen in every sector. Right from the street side vendor to an influential business tycoon to giant corporations, digitization has the power to impact everyone globally.
If we specifically talk about the banking sector, digital banking is an absolute boon. A few years ago, availing of any of the services that banks provided was a tedious task. It also demanded a significant amount of the users’ time and energy.
However, with the introduction of digital banking, the banks have now been able to serve their users at the remotest places and positively impacted lives in rural areas. Not only is digital banking convenient and time-saving, but there is also an improved level of transparency when compared to the traditional banking methods.
As our country moves towards establishing itself as “Digital India”, a lot of conventional services are bound to shift to the online platform.
Digitization is all set to make a positive impact and the banking sector will reinvent itself in unimaginable ways. Keeping all these points in mind, one can safely say that digital banking is not a fleeting trend and it is here to stay.