Know The Importance Of Digital banking In Today’s World

In a day and age where technology is rapidly changing the way we do things, it’s important to stay on top of new trends. Technological advancements have impacted the way people carried out the daily activities. Most of these activities involve financial transactions. One can easily recollect the struggles of long queues in the banks to withdraw or deposit cash from the branches, before the ATMs were introduced. In the current scenario, this facility has gone beyond visiting any physical location for basic financial transactions. Banks have leveraged the technological advancements to provide the best of facilities at the comfort of fingertips to their customers. The banking transactions carried out digitally without visiting, intervention of branches/staff is known as “Digital Banking.”

One of the most preferred mode of Digital banking is Internet banking through a  computer/ laptop/mobile phone or Mobile Banking applications. It is not limited to payments but extends to multiple banking operations. Digital Banking gives you the privilege of performing all traditional banking activities 24*7. This makes digital banking one of the important developments in Banking Industry. Few benefits that customers have benefited through Digital banking are summarized below:

• Quick Fund transfers

One of the most significant benefits of Digital Banking is the facility of quick funds transfer without the hassles of issuing a cheque or Demand Draft. Users can transfer funds to anyone, anytime through various options like IMPS, RTGS, NEFT, etc available in digital banking. 

• Convenience 

The speed and convenience at which the customers can perform financial transactions in the current scenario was unimaginable a decade or two ago. Users can save lot of time and energy by performing a banking transaction with few clicks anytime at the place of their convenience and comfort. This has reduced the burden of scheduling the branch visits/offices amidst the busy lifestyle.

• Instant Updates

Earlier, the customers had to rely on branch visits for status update of any financial or non  finaancial transaction. Through digital banking, one receives instant alerts through SMS and e-mail. 

• Automatic Payments

Paying bills can be a hectic task attimes. Failure to pay bills on due date can lead to suspension/termination of the services being availed. Earlier, people used to stand in long queues, carry bills and cash for bill payments. Digital banking has enabled the users to set automatic payments for utility bills like electricity, water, internet, etc so that they never have to worry about missing the due date and enjoy the uninterrupted services. Many banks facilitate the payments of bills through their mobile banking applications. For Instance, Karnataka Bank offers payment of utility bills/recharge their mobile phones etc through their “KBL- Mobile Plus” application.

• Additional Offers

While making an offline purchase, users have an opportunity to bargain with the merchants. However while shopping online, bargaining is not possible or at least, it cannot happen instantly like in the case of offline shopping. However, the brands have found an innovative way to provide discounts to the users. A lot of digital stores have flourished and encourage digital payments through secure gateways. Although the users cannot bargain, they can leverage various offers provided by banks to make online payment with their credit/debit card or UPI/ Internet banking payments. 

Apart from the obvious benefits of digital banking, here are some interesting facts too:

• Users can do digital banking without the internet, They can avail missed call banking facilities. This is done so that even people without Smartphones or Computer/laptop can also benefit from digital banking. 
• Secure transactions: In order to prevent unauthorized access, banks adopt multiple security measures to ensure the security of transactions and the user data. However, users must always be vigilant to not click on any suspicious links that may lead to fraudulent websites.
• As per a survey, In 2021, India accounted for the largest number of worldwide real-time transactions at 48B which is almost three times that of China which is at 18 billion and is next in line for the same.

Digital banking has made life comfortable for customers and Bank. Users can open an account online, deposit money, transfer funds and pay bills/recharge online. It is specifically helpful for those having a busy and dynamic lifestyle. Digital Banking gives users the privilege to perform major financial  activities without worrying of scheduling a branch visit. They can do it at their place of comfort either through a laptop, mobile phone etc. Users can perform Online transactions with caution, and by following the banks’ guidelines and avoid risk of theft, burglary/robbery etc that might occur while carrying physical cash. Therefore, users can switch to digital banking and enhance their banking experience from the place of their comfort.