In the present time, no industry in the world is untouched by the effects of digitalization. Digitalization refers to adapting computer and information technologies to improve business operations, business models, and customer service. The banking sector is one of the numerous industries that have undergone and witnessed many upgrades owing to the advancements in digital technology. Nearly every bank in the world now has its online presence. It is deliberately done to keep up with the competition of providing the best customer services and compelling more customers to avail of banking services.
The online footprint of different banks has allowed customers to access and initiate minor banking-related activities through a banking app rather than having to travel to their respective bank branches. It has, in turn, provided several benefits to both the customers and the banks.
- Faster payment processing: Digital banking is increasingly becoming the mainstream payment method for individuals and businesses. Digital banking has tremendously reduced the transaction processing time by allowing users to make payments to anybody from any part of the world in a few clicks. Customers are no longer bound to the 9-to-5 working pattern when initiating digital payments. Additionally, now it’s also possible to automate the payment process, which cuts down the time spent on repetitive expenses like monthly or yearly bill payments.
- Increased security: contrary to the older banking methods that relied on pen-and-paper-based record keeping, digitalization has dramatically replaced the need to maintain paper-based ledgers, which were susceptible to theft, damage, and misplacement. Such logs are now replaced by digital ledgers that any bank account owner can access through their respective mobile banking app. It makes it easier for account owners to identify any instances of fraudulent transactions and consequently report them to the respective investigative authorities.
- It is more convenient: As digital payments are becoming widely available, the need to carry cash to every place has almost been eliminated. Likewise, the risk of losing money in pick-pocketing has also been destroyed. From small business owners to large corporations, everybody accepts online payments. Digital wallets have replaced traditional wallets and made it infinitely easier to report any loss or theft. Moreover, account owners can perform a bank balance check anytime as long as they have a stable internet connection. A simple call to your bank with a request to block your cards and internet banking services is sufficient to prevent unauthorized transactions from any entity other than the bank account owner.
- Users can avail discounts and earn rewards: In an attempt to encourage the population to adapt to digital payment services, multiple companies offer rewards, like cash backs, discounts, and vouchers on payments that are made digitally. Although this is mainly a strategy to boost sales and maximize profits, it benefits both the consumers and the businesses.
To conclude, digital banking has opened many opportunities for people looking for convenience and speed when making payments. It has made bank account owners feel more authorized and responsible for their accounts and the money in them.