Emit bank statements
View and download your bank statements for any specified period.
For fund transfers, the use of options like NEFT, RTGS, and IMPS has eliminated the need for issuing checks and DDs.
Mobile banking
Allows customers to access financial services and perform financial transactions using a mobile device, such as a smartphone or tablet.
Fewer cash withdrawals
Digital Banking has contributed to a decrease in cash withdrawals at physical bank branches and automated teller machines (ATMs). With the increasing availability and convenience of electronic payment methods, such as debit cards, credit cards, and mobile payment systems, many people opt to use these methods to conduct transactions instead of withdrawing cash.
Paying bills automatically
The auto-debit feature for bill payments allows a user to set up a monthly debit in favor of regular utility payments.
Accessible finance
You can link your bank account to various financial activities, such as investing, borrowing loans, and opening fixed deposit accounts, to ensure a smooth flow of funds.
Manage Checks
Use digital banking to intervene in the check-clearing process and stop a check if needed.
Monitor transaction records
Transactions are updated in real-time, allowing users to monitor their account balances and identify outstanding transactions with just a click of a button.
Digital Banking products
What does Digital Banking mean?
Digital Banking is the automation of traditional banking services. It allows bank customers to access banking products and services using a gadget or an online platform.
Digital Banking is convenient and often offers more options and features than traditional banking methods, making it a popular choice for many people.
Digital cards
They can be easily accessed through a digital banking app, and users do not need to carry a physical card with them. Additionally, digital cards may offer enhanced security features, such as the ability to lock or disable the card if it is lost or stolen.
Aadhaar Enabled Payment Systems (AEPS)
AEPS is a digital payment system that allows users to conduct financial transactions using their Aadhaar number (a unique identification number issued by the Government of India to every individual resident of India) and biometric data.
Unified Payments Interface (UPI)
UPI is a digital payment system that allows users to make and receive payments instantly and securely using their mobile phones. It is an open-source platform that is owned and operated by the National Payments Corporation of India (NPCI).
Mobile wallets
Digital wallets have made it easier for users to make payments and manage their finances by eliminating the need to remember card PINs, CVV details, and carry cash. Instead, users can store their bank account and card credentials in their digital wallet and easily add funds and make payments to other merchants with similar applications.
PoS terminals
PoS machines are portable devices that are used to process card payments in physical retail locations, such as supermarkets and gas stations. They are equipped with a card reader that allows them to read and authorize card payments. In recent years, virtual and mobile PoS terminals have also become available, which use the NFC feature on people's mobile phones and web-based applications to initiate payments.
Internet and mobile banking
Commonly known as e-banking, this refers to obtaining certain banking services over the internet. These services may include fund transfers, opening and closing accounts, and other core banking functions.
Some types of Digital Banking
Online Banking vs Digital Banking
Online banking: Refers to the everyday basic elements of checking balances, reviewing transactions, and transferring funds, which is the core operation of the bank that has been shifted to an online presence.
Digital banking:This is a broader term that refers to the use of a variety of electronic channels and technologies to access financial services and perform financial transactions. Digital Banking makes the physical presence of a bank redundant for its customers so that they can handle all banking operations from their place of convenience.
Some benefits of Digital Banking
Convenience
Thanks to digital banking, consumers can easily perform banking tasks from the comfort of their homes, at any time of day or night.
Sustainability
Reducing paper usage, cutting carbon emissions from transportation, and increasing energy efficiency are all factors that can help to minimize the environmental impact of the banking sector and contribute to a more sustainable future.
Payment automations
With digital banking, users can pay their regular bills, including electricity, gas, credit card bills, and other services, electronically, eliminating the need to remember due dates or visit physical locations to make payments.
Online shopping
The widespread adoption of digital banking has made it easier for consumers to make online purchases and pay for services, driving the growth of e-commerce and other digital payment channels.
Serve remote areas
Thanks to digital banking, more people, including those in remote areas, now have access to banking services, enabling rural populations to participate in the digital economy and manage their finances.
Greater personalization
By utilizing artificial intelligence (AI) and machine learning (ML), digital banking software can empower banks to provide customers with personalized financial options, interactive tools, and educational resources.
Improved usability
Integrated know-your-customer (KYC) and anti-money laundering (AML) protocols enable digital banks to swiftly and conveniently open accounts for customers using any internet-enabled device. These protocols streamline identification verification and risk assessment processes.
More features
Digital banking offers a variety of features that can enhance the convenience and efficiency of managing finances. These include buying cryptocurrencies or gold, direct stock market investments, instant modification of security settings or transaction limits, and even the ability to specify NFC or magnetic stripe payment preferences.
What's next for Digital Banking
Banking as a service and Embedded Finance
Embedded finance (EmFi) refers to the integration of financial services such as lending, payment processing, or insurance into non-financial business infrastructures, without the need for traditional financial institutions to be involved.
Banking as a platform
BaaP allows companies to leverage the capabilities of financial institutions to create and offer their own financial products and services, without the need to build and maintain their own banking infrastructure. This can help companies to enter the financial services industry more quickly and efficiently, and can also provide a new revenue stream for financial institutions.
Open banking and open finance
The use of open APIs enables the sharing of financial data and services not just between financial institutions and third parties, but also among individuals and organizations in the broader economy. Open finance aims to create a more open, inclusive, and innovative financial system by enabling the sharing of financial data and services among a wide range of stakeholders.
Social banking
For banks of all sizes, it is important to find ways to build and foster relationships with customers in order to remain competitive. One way banks are doing this is by using social media to connect with their customers and create a sense of community. Some banks are taking this a step further by developing their own social banking platforms, which encourage a human connection between the bank and its customers. By creating a customer community on these social platforms, banks can build stronger relationships with their customers and provide them with a more personalized banking experience.
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