"Digital Banking" Transforming the Financial Services Industry | ApnaPay
Digital Banking

The significance of digital banking can be credited to its various benefits like reduced operational costs, attracting new customers, retaining old ones, and moving & staying ahead of competitors by adhering to new regulations and utilizing latest technologies.

The demand of digital banking has positively developed and has grown at an exceptional pace, with the world of IoT enabling consumers and convincing businesses to step along the way towards digitization for staying competitive in the financial services space. Various industry verticals have enjoyed the monetary gains acknowledged by going digital, including retail and education, however not as broadly as the banking segment.

On-premises exchanges at banks have traditionally been considered as vital but challenging, mainly due to long teller queues and the time it takes to process requests like fund transfer, withdrawals and investment choices. Digital banking helps to address all such concerns, which is important to meet the desires of the tech-savvy and prominently bustling consumers of today and of the rural consumers with little banking knowledge.

Key digital banking patterns to keep an eye for

The expanding significance of digital banking can be credited to its various advantages, some of which include reduction in operational costs, attracting new customers, retaining old ones to intensify revenues along with remaining in front of the competition by sticking to new regulations and deploying latest technologies like banking POS and micro ATMs. The overall landscape of digital banking can be characterised by the rising trends being observed globally, with regard to the modernization of major banks and the ascent of various specialized services.

Digitization of major financial and banking institutions

Essentially, large banks can possibly drive enormous investments towards digitization by redesigning the legacy software and hardware systems into something that is inexpensive and is a one-time process. Digital banking could provide established firms with a total perspective of customer needs and behavior. Digital banking assistants are another novel arrangement accessible on the platforms of prominent banks to help and advise its clients, connoting a remarkable evolution in customer-bank relationships.

Other than retail banking customers, the majority of the major banks have thousands of small businesses as a major aspect of their customer base, who need to deal with their everyday banking needs in addition to keeping up successful operations. Digital banking could conceivably ease up the business procedure for these ventures by offering more convenience in dealing with transactions, dispersing wages and monitoring the payments. Banks, as part of their digital banking offerings, are divulging a host of digital tools specially designed for small enterprises. The new apparatus would help in streamlining major expenses, transactions, generate income projections along with easy connectivity with small business bankers for quick counsel.

Rise of niche applications relating to digital banking

The scope of banking has been reliably extending with every generation and diverse classes of customers may utilize one type of service more than any other. With shifting consumer inclinations, increasing disposable incomes and developing venture openings, innumerable small players wanting a stake in the domain of digital banking have been endeavoring to oblige specific customer requirements and specialty fragments.

Lending is one such service which has discovered a great number of customers speeding towards digital banking apps that are putting forth appropriate loans at appealing interest rates and for specified industry segments.

Another feature of banks which is slowly and gradually gathering momentum is the doorstep banking services. Customers are increasingly looking it as bank branch on their doorstep which lets them a deposit, withdraw, transfer and even open a new bank account at their home comfort, a process that conventionally involves complex decisions and paperwork. Banks provide these services with the help of banking correspondents provided with handheld biometric, i.e. fingerprint or iris scanner enabled, banking POS which is capable of doing eKYC without any paperwork.

Future growth opportunities for companies wanting to tap the popularity of digital banking

Over the next few years, an ever increasing number of small banks are expected to fully digitize their processes and bolster paperless transactions, staying ahead with the declining inclinations of consumers towards visiting physical bank branches for regular banking stuff. New digital banks, which are totally on the cloud and have absolutely no old school banking experience and infrastructure, will increase tremendous footing among youngsters mainly who have been straightforwardly skilled the comfort and convenience of online features.

As far as technical headways, the raising obsession for and interest in digital banking mobile apps, banking POS and handheld micro ATMs will pressurize banks to integrate these in their functioning or risk losing customers. In a nutshell, the global digital banking ecosystem holds immense undiscovered potential for growth, from meeting the day-to-day needs of consumers and enterprises to getting ready for disruptive future technologies.