Digital Banking And Its Foray Into The Banking Sector
Digital Banking is the automation of traditional banking services. Digital banking enables
a bank’s customers to access banking products and services via an electronic/online platform.
Digital banking means to digitize all of the banking operations and substitute the bank’s physical
presence with an everlasting online presence, eliminating a consumer’s need to visit a branch.
Advancing to a more technologically sophisticated way of doing things, it goes without
saying that the benefits long outweigh the costs. Similarly, digital banking as
a technological by-product aims to make life easier for the customers of a bank.
Digital banking enables consumers to perform banking functions from the comfort of their homes,
be it an elderly person who is tired of waiting in lines or a working-class professional who is caught up with work,
or a regular person who does not want to visit the bank’s branch to run a single errand. It also offers convenience.
One of the biggest drawbacks of traditional banking was the overly placed importance on paper. Banking has become paperless with the development of digital
banking as a service. A user can log into their account at any point in time to monitor records.
Digital banking allows a user to set up automatic payments for regular utility bills such as electricity,
gas, phone, and credit cards. The customer no longer has to make a conscious effort of
remembering the due dates. The customer can opt for alerts on upcoming payments and outstanding dues.
Digital banking extending services to remote areas is seemingly a step toward holistic development. With smartphones at affordable prices
and internet access in remote areas, the rural population can make the most out of digital banking services.
By promoting a cashless society, digital banking restricts the circulation of black money as the Government can keep a track of fund movements.
In the long run, digital banking is expected to lower the minting demands of a currency.
