Mudra Compass

Now-a-days digital banking is not a new word, or even you have heard it before and post pandemic it is used in day-to-day life on a regular basis. Technology has brought a great change in the banking industry. The retail banking needs to change their existing way of dealing, owing to competition from fast, focused digital newcomers.

In simple terms digital banking means a way which a consumer can use on any internet-connected device, smart phone, or tablet. Digital banking is at the center of today’s customer experience.  Digital banking allows people to deposit, withdraw, and pay bills all digitally without having to physically walk into the branch.

Important facts to understand about digital banking

• If you consider digital banking to be another name for online banking then remember other than you, so many people understand the same, but it is more than just online banking and digital banking does include options for online banking.
• This is a user-friendly approach, no one wants to jump through hoops to manage their accounts remotely hence, banks of all types make sure their websites, as well as their apps, are easy to navigate.
• You can access tasks through digital banking without having to step outside your door. Digital banking allows you to manage many needs from home or anywhere else you might be.
• No one likes to be in queue for banking needs or any other need. That’s why so many people like the idea of managing tasks in an online setting.
• Digital banking allows you to transfer funds between accounts you have with the same institution immediately. That means if you want to transfer some funds in your offshore checking account into a time deposit or an investment account that you have with the same international bank, you can handle it in mere minutes.

Features you must know about digital banking

1 Online Banking – Online Banking is one of the features of digital banking which allows you to bank whenever and wherever you want. Except for the time required for website maintenance, website services for internet banking are available 24 hours a day and seven days a week throughout the year.

2 Personal Finance Planning – To survive in industry, every bank must have to provide some advantages over their rivals and as result, most banks are having a variety of banking options such as, Loan Calculators, premium calculators, financial planning software, tools to help evaluate finances, budgeting, forecasting, and tax preparation are just a few of the robust digital banking features on specialized websites.

3 Mobile Banking Options – With innovation in technology, due to Mobile or Tablet, now customers can perform online banking from any location and at any time. Most banks have Mobiles based Apps for online banking.

4 Unified Payment System (UPI) – Earlier depositing money to someone else’s account was a big challenge due to traditional banking and time-consuming cheque clearing service. The process is now simple and fast due to technology. Customers can now move money from one account to another with ease, thanks to the integration of the Unified Payment System (UPI) and digital banking solutions.

5 Digital Wallets – Now-a-days carrying cash is not in trend due to Mobile Wallets (m-wallets), also known as virtual wallets, are becoming increasingly common. Customers can pay with these wallets simply by using your smart phones.

Things you need to know before opting for a digital banking

• When choosing digital, people generally have questions in mind about the efficacy of security because this is a matter of their hard-earned money. So, before deciding a digital bank, a person must see how many layers of security are available for them in such a system. For example, Airtel Payments Bank offers a feature called the ‘Airtel Safe Pay’, an additional layer of security where no money leaves your account without your explicit consent.
• Speed and convenience is now-a-days one of the important aspects people look for while doing transactions. Convenience is one of the biggest plus of using a digital bank for money management. Besides, people do not like to visit banks for small work, so now everything is digitally.
• Rewarding systems help when a bank also backs people through a consistent rewards’ mechanism, encouraging them to move their money sensibly. Almost all payment banks offer exclusive rewards on payments, shopping benefits and so on.

• Many payment banks offer lucrative investment options such as The Airtel Payment Bank empowers its customers to make investments in gold through digital platforms.

• Daily utilities and their payments should be a convenient experience. Be it train, air, cab bookings, all of this can be done through the utility payments service without any extra charges.