Many of us cannot imagine a life without online banking. Transfer of funds, checking of accounts, making payments, everything can now be done with a few clicks on the computer or the phone. Besides these benefits, digital banking offers a lot more to the public who want to open their eyes and see it. It is also crossing a lot of barriers to bring about real change in the world of banks. Recent advances in the banking and financial sector like blockchain, IoT, eKYC and artificial intelligence are all digitally-inclined. While banks, small and big, all over the world take the automated push, the above mentioned modern modes are all set to change the way we look at banking today. Here’s a peak in to what advantages does digital or online banking offer:

1. Easy-Peasy: Though Digital Banking has not entirely replaced the brick and mortar banks; it is definitely the more preferred option. Long queues have been cut and reasons to visit a bank in physical have reduced to almost none. Everything from opening and account to managing savings can be done online. Banks too are adding more and more services on their web portals that are refurbished as many times as needed. A virtual account in which you can actually view your monetary arrangements clearly has helped people have a more organized financial life.

Apart from this 24x7 online banking services is another added advantage for users who feel more in control of their accounts and finances.

2. Mobile Banking: Today most banks have their own mobile apps that provide all the advantages of online banking on the phone. The evolution from text alerts and phone banking to app banking services has been an important one. It is quicker and more convenient. Check up on your account when you are out shopping or conduct speedy real-time transfers when you are making a purchase, mobile banking is definitely making online banking easier.

3. Money Applications: After demonetization in India, money applications like Pay TM and TEZ have gained supreme popularity. These apps can automatically sync with one’s online banking information and helps in adhering to targeted budgets while shopping or purchasing. Many of these apps work on both the computer and mobile device for higher degree of information when one the go. E-statements are also important to be prevented from overdrawing one’s account.

4. Security: While online transactions are always marred with a certain sense of insecurity, experts believe that if one is careful there is no safer or private system. Firstly, clear cookies after any banking session at a public computer. Create long and complicated passwords that cannot be hacked. Don’t ever share your online account information with anybody. Always keep a track of your credit report. Prevent yourself from identity theft with these measures.

5. Cost-effective: For banks, digital banking has lowered the operating costs by eliminating back-office processing operations, fewer mistakes and fewer branch visits needed to less staff requirements. Yes, going digital does mean investing in a reliable and scalable IT infrastructure but it also means independence from legacy systems that often stall a bank’s progress. Apparently, banks are worried about investing in for a change but smarter businessmen always know that not investing in a change might prove to be costlier later.

These benefits of insignificant infrastructure and overhead costs helps banks to better serve their customers by lowering interest rates on savings and loans. No minimum balance accounts and no service fees is a result of such automated banking.

Meanwhile, digitalization in banking has already put a stop on several malpractices like circulation of counterfeit notes which has been a major threat to the economy since many years. Also, taking customer feedback has become easy now enabling the banks to give better services. Digital banking also means more digital data and this means that big data analysis can be carried out by banks to analyze data accurately. This will eventually lead to better decision making, more cost-effective solutions, and improved customer experience.

About US: