5 Reasons Why Digital Baking Is Important In The Banking Industry
Posted: Jun 15, 2019
Digital banking means the complete digitization of banks and the activities, programs and functions. Digital banking is about the automation of every step of the banking relationship and it goes way beyond an online or mobile banking platform. With the advancements in technology, the financial sector has also been revolutionized. If a customer wishes to conduct any of their financial transactions they will have to visit the branch of the financial institution physically, but with the revelation of technological advancements, customers can easily conduct all of their financial transactions over the internet through a computer or a mobile phone from the comfort of their homes. Almost every financial institution nowadays provides the option of digital banking.
Digital banking involves the transformation of the financial institutions to a digital environment, frontend and backend and anything in between for both customers and employees. Digital banking generally relies on big data, analytics and embracing all the new technologies for improving a customer’s experience. There is a lot more to digital banking than what meets the eye, some of the reasons why digital banking is important for the banking industry are listed below.
5 reasons why digital banking is important in the banking industry:
- Increasing revenue: A good digital banking website will lack intelligent systems for gathering customer intelligence and help them in becoming customer-centric. Aa good digital banking website will be beneficial for increasing the customer traffic to the website and increasing customers and revenue.
- Attracting and retaining customers: The demand for improved customer experience and personalized services grows and products and services of established banks are more expensive. Digital banking websites generally have an improved website for attracting customers. Digital banking will help to improve the customer experience at low costs, that are needed to increase the number of customers.
- Reducing costs: The financial institutions are under pressure for reducing the costs to remain competitive. If a customer switches to digital banking they should continue to invest in the expensive legacy hardware and software for keeping the systems up to date. With digital banking, customers will be provided with different offers in an attempt to provide customers with some discounts and offers.
- Exploring the benefits of new technologies: New technologies like data analytics, open APIs, blockchain and cognitive banking are predicted to impact the banking business models. Although, legacy systems limit the ability of a bank to react quickly to the developments. Customers will need full digitization for exploring the benefits of the technologies and future-proof the bank.
- Easy transfer of payments: One of the most important things for businesses these days is time, so digital banking ventures have made it easy and simple. The digital banking helps a business to easily transfer payments in an employee’s bank account. Some of the regular bank accounts can be automated, so a professional will be able to use their valuable time on something more important. Digital banking also adds value to a lot of businesses.
Shashank Bhaskar is an Mba student and financial advisor in Mumbai.he shares his financial experience and guides you about all your financial queries.