Digital banking provides banking services using the internet and mobile technology. These banking services include management of accounts, fund transfers, and recharges, besides bill payments. Digital banking is increasingly gaining popularity due to its convenience. In this article, the reader would benefit from information such as benefits, types, and services offered.
In simple terms, digital banking provides various banking services electronically via the Internet. All tasks performed remotely are similar to operations through a regular bank account, without the inconvenience of physically having to visit the bank’s branch. The primary benefit of digital banking is its 24/7 accessibility, free from any restrictions on banking hours. As such, customers can use banking services anytime, remotely from anywhere, opting for instant access through either smartphone, tablet, or personal computer.
A digital or savings account is a modern banking solution that permits customers to open a new bank account online. So, everything a customer can access is similar to a regular bank account, without the need to visit the branch.
Complete KYC and video verification with the customer’s preferred bank(s) is accessible to whichever account. Depending on the bank, there may be a necessity to deposit a minimum balance as initial funding. However, customers may benefit from different variants of digital bank accounts in every single bank.
Customer benefits would be
Remotely opening accounts without the physical need to visit the bank branch.
Access all banking services directly from the customer’s own laptop, tablet, or smartphone.
Experience a complete paperless banking system at the customer’s convenience.
Benefit from reduced costs passed down to banks for low maintenance fees.
Enjoy competitive interest rates, based on the chosen bank.
Application for a virtual debit card for convenient transactions.
The benefits of minimum balance, account maintenance cost, debit card charges, etc., depend on the customer’s selected bank and the variant of the customer’s savings account. Customers are always advised to verify the bank charges involved prior to opening bank accounts.
There are varied types of digital banking services customers may avail themselves of.
Unified payment interface (UPI) is a widely used digital payment system that permits customers to transfer money directly from a customer’s bank account to other receivers by opting for different mobile applications. UPI offers seamless transactions using a virtual address, linking multiple bank accounts to a single UPI application.
Internet banking is also referred to as “net banking,” which permits customers to manage bank accounts online through bank websites. Customers can securely execute multitasking across different transactions. The process includes fund transfers, bill payments, account management, etc., through secure customer login credentials.
When it comes to mobile banking, customers receive a dedicated application on their smartphone or other devices to access banking services. Once again, customers can conveniently access their bank balances, initiate payments, and conduct other banking activities anytime and from anywhere.
There are many types of banking cards offered in the digital banking system.
Customers can directly link their debit cards to their bank accounts, enabling them to make cash withdrawals in addition to initiating purchases.
Credit cards are directly linked to a bank account to initiate purchases on credit for settlements later on an agreed due date.
Prepaid cards have no link to customer bank accounts. The customer can load money into such cards and opt for subsequent use.
Virtual debit cards are electronic versions of debit cards used again for online transactions..
Mobile wallets are equivalent to digital wallets that store money, permitting customers to transact through an app linked to the customer’s bank account. Mobile wallets also tend to provide convenient ways to initiate payments for goods & services online or in stores.
