Advantages of Digital Banking

Digital Banking is the application of technology to ensure seamless end-to-end processing of

banking transactions/operations; initiated by the client, ensuring maximum utility; to the client in
terms of availability, usefulness and cost; to the bank in terms of reduced operating costs, zero errors
and enhanced services. It is the digitization (or moving online) of all the traditional banking activities
and programs that historically were only available to customers when physically inside of a bank
branch. This includes activities like:
Money Deposits, Withdrawals, and Transfers
Checking/Saving Account Management
Applying for Financial Products
Loan Management
Bill Pay
There are many advantages of digital banking.
Benefits to the Bank:
1. Lower operating costs through;
a. The elimination of costly back-office processing operations,
b. Fewer (or ideally no) errors,
c. Smaller branch footprint (the typical branch can become a kiosk affair, providing
technology interfaces for the client to use plus the ability to deal with banking specialists via a video
link) a minimum number of actual staff will be required.
d. Concentrating banking/business specialists in a single centre, who are then available to
clients via a technology link (either on their mobile, pc or via a kiosk branch).
Operating cost savings of between 20% to 40% could be achieved this way, according to industry
experts. Cutting costs has the opposite effect on profits they go up.

2. Dumping legacy systems;

a. Make no mistake - one of the biggest drawbacks to going Digital is this irrational clinging
to legacy systems (developed in the 1960s and 1970s) that hold progress back. Banks plead the huge
cost of making the change. They are wrong. The ultimate costs of not making the change are far
greater.

Benefits to the Customer:

1. Improved services and product offerings;
a. 24/7 bank services and availability through your mobile, pc or kiosk branch,
 b. Smart Banking applications that allow ALL transactions to be completed from the device
of your choice, from beginning to end (with clear instructions and fail safe mechanisms),
c. Access to a FULL range of services (savings, investments, insurance, loans, mortgages,
foreign currency, etc.),
d. New useful client services such as warnings, notifications, budgeting, expenditure analyses,
savings programs, calculators (you name it the range is endless),
e. Lower charges (and therefore cheaper banking),
f. Banking that meets the clients needs (not the banks).

Advantages:
1) Fast Transactions-
As already mentioned before, online systems are rapidly quick.
You do not have to wait in a long line or run along from pillar to post to get your job done.
Anything that needs to be done can be done quickly and easily. For instance, let's say the day's
agenda is to pay bills, transfer cash, and deposit cash.
Without online systems, these tasks may take you more than 4 to 5 hours. With online banking, the
same tasks will require a maximum of an hour.

2) Easy Access-
You can easily access and monitor your accounts.
You can monitor your cash flow and other transactions and stay abreast of the latest techniques
with a mere click of a button.
The rates offered in online banking systems are much more convenient and friendly.
Since, there are virtually no overhead costs, you are offered low rates of interest on loans and
higher rates of interest on savings accounts.

3) Security-
Online accounts are always protected with special encryption software.
As the transactions involve a huge amount of money, the designers of the banking software make
sure that complete protection is given to the system.
Passwords are protected by virtual keyboard, digital signature is involved, periodic notifications
are added, beside many other protection mechanisms.
As a customer, we should ensure that the bank's website has a valid security certificate (to be
insured by the FDIC.)
4) Time and Location Constraint-
This is one of the most obvious and best advantages of online banking.
With traditional banks, you must have gone through the woes of 'Oh, it's a Sunday, I cannot go to
the bank' or 'It's past 6 in the evening, the bank must have closed for the day' often.
With online banking, you can happily bid these woes goodbye, since they are available 24X7, 365
days in a year.
And, there is no location constraint as well. You do not have a physical structure as the bank, your
bank is available right where you need it - yes, in your hands.
Online banking is available on mobile applications and tablets as well, making it all the more
convenient and easy to use.

5) Online Features-
Though traditional banks also offer many features, the frequency and variety is considerably more
with online services.
Moreover, you are easily updated with the latest offers, as opposed to traditional banks.
Many online services offer different types of certificates of deposit (CDs) and low rates on
mortgages.
Some banks offer services of opening accounts with a mandatory deposit limit or fees.
Some other banks may offer financial planning tools, and other investment platforms.

So these all are advantages to customers & banks of digital banking. Everyone should start
learning & using digital banking. So that It will also help to Cashless Society. And finally I will like to
end it with a quote by Thomas Jefferson: I sincerely believe. That digital banking establishments
will lead to better future for both banks & people.