It’s becoming a thing of the past to step into a brick-and-mortar building for your banking needs. There’s little doubt that banks that don’t digitize their services will soon become obsolete. Customers want the convenience of having their bank’s features on their phones, and if traditional banks can’t catch up to their needs, they’ll get abandoned.
Digital banking is here to stay. A proper definition of the term is banks that provide some or all their banking services through websites and mobile apps. The umbrella term of digital banking includes banks with brick-and-mortar buildings and banks that operate entirely online. The latter is also called neo banks.
Like the rest of the world, digital banking services in India are rapidly getting popular. Let’s take a look at some of the benefits of digital banks.
1. A Better Customer-Bank Relationship
Websites and apps directly provide banks with valuable consumer data. This information can help banks assess their customer’s needs better and improve their services accordingly.
Banks can also provide personalized online platforms for their users, which results in greater customer satisfaction. In addition, banking apps with user-friendly features and a responsive design help customers feel in control of their finances, which in turn builds trust with the bank.
2. 24/7 Access From Anywhere
For digital banking, all that customers require is an electronic device and a reliable internet connection. Time and physical location become irrelevant. Customers can instantly access their accounts for viewing their balance, paying bills, transferring funds, and more.
Banks can stay in touch with their customers by sending notifications and alerts through the apps. Some banking apps may have a live chat and other quick contact options, which allows banks to provide better customer support.
3. Better Rates And Greater Transparency
Digital banks charge lower fees and commissions to attract more customers and stay ahead of the competition. Some digital-only banks or neo banks drive down costs by a great deal and provide much higher interests for savings accounts than local banks.
Neo banks can afford to do this because of reduced overhead costs since they don’t have physical branches. Better rates are one of the reasons for the rising popularity of neo banks in India.
Most customers find digital banks more transparent about their services than traditional banks. This may be because digital banks make customers feel greater control, give notifications, and provide easier access to information.
4. Attractive Features
Millennials and Gen Z value feature-rich apps, and most digital banks understand that. That’s why you can find innovative features and services in digital banking that traditional banks don’t provide.
Examples include savings tools, gamification, personalized financial advice, budget tools, expense trackers, and more. Some digital banking may take it a step further and provide mutual funds and online trading options for their customers.
5. Security And Cash-Free
Most digital banks use the latest technology for security, such as multi-factor authentication, biometric authentication, scanning for risks, identifying login from unknown locations, and more.
Online transactions are also generally more secure than cash or card. With digital banking apps, you can be free of both and make payments on the go with peace of mind.
What Lies Ahead For Digital Banking
The future of banking is digital; it’s hard to argue with that. Many opportunities lie ahead for digital banking, but the field is very competitive. Consumers are leaning toward banking solutions that combine almost all of their banking needs into one app, whether it is fund transfer or investment.
Digital banks also need to provide greater personalization to their customers and mold their services around the financial goals of their customers. Furthermore, digital banks should keep working on providing their customers with an optimal balance of digitization and a human touch.