The different digital banking account options and how to choose them are very important for banking customers. When a consumer has adequate knowledge of an account and its benefits, it makes for easy transactions.
Recently, banking services have been carried out based on digital Platforms not using paperwork.
Digital banking means the availability of banking services online
In this article today, I will be discussing the different digital banking account options and how to choose them. Read on to gather more information.
Different Digital Banking Account Options And How To How To Choose
Digital banking has automatically replaced traditional banking services. Digital Banking allows a bank customer to access banking services and products using an electronic or online platform. With digital banking customers do not necessarily need to be present or visit any physical branch. All banking operations are now digitalised making their presence always online.
Digital Banking Products
Digital Banking offers various services and products. If an individual has access to a stable internet connection and an internet-enabled smart device, digital banking has a lot to offer. Digital products and Services are as follows;
Transfer of Funds
It is an alternative to NEFT, including RTGS and IMPS. There is no need for issuing Checks to anyone.
Bill Payment
You can now use auto debit features for your bill payments anytime. All that it requires it’s a set up monthly debits for regular utility payments.
Mobile Banking
Mobile banking is digital banking via an application optimized for smartphones and tablets.
Transactions Records
Digital banking sends transactions receipt or alerts to the linked mobile phone number or Email address. All transactions are updated immediately as soon as the execution is done. With digital banking, you can monitor account balances or any outstanding transactions at the Click of a button.
Finance
All through digital banking. You can raise loans, invest, and open fixed deposit accounts.
Cash Withdrawals
ATMs facilitate cash withdrawals at any point in time. Moreover, ATMs are widely present in all localities.
Manage Cheques
Managing cheques, it’s a cheque-clearing process using digital banking to stop the cheques if the need arises.
Digital Banking Meaning
Digital Banking is the automation of traditional banking services. It enables customers to access banking products and services via an electronic/online platform. Digital banking means digitizing all of the banking operations and substituting the bank’s physical presence with an everlasting online presence, eliminating a consumer’s need to visit a branch.
Digital Banking Advantage And Disadvantages
Advantages
Digital banking has advanced to a more technological way of operation, however, digital banking aims to make their services more improved and advanced for customers of a bank. There are some advantages of digital banking and they are as follows:
- Digital banking allows consumers to perform banking functions at the convenience of their houses, be it an elderly person who is tired of waiting in lines or a working-class professional who is caught up with work, or a regular person who does not want to visit the bank’s branch to run a single errand.
- Elaborating on the convenience offered, digital banking lets a user carry out banking work around the clock, with 24*7 availability of access to banking functions.
- One of the biggest drawbacks of traditional banking was the overly placed importance on paper. Banking has become paperless with the development of digital banking as a service. A user can log into their account at any point in time to monitor records.
- Digital banking allows a user to set up automatic
- It promotes a cashless society, digital banking restricts the circulation of black money as the Government can keep a track of fund movements. In the long run, digital banking is expected to lower the minting demands of a currency. payments for regular utility bills such as electricity, gas, phone, and credit cards. The customer no longer has to make a conscious effort of remembering the due dates. The customer can opt for alerts on upcoming payments and outstanding dues.
- It promotes online shopping. As Online shopping has become an easy task with payment channels becoming well-integrated with online shopping portals. Internet banking has significantly contributed to online payments.
- Digital banking-enabled fund tran• digital banking extending services to remote areas is seemingly a step toward holistic development. With smartphones at affordable prices and internet access in remote areas, the rural population can make the most out of digital banking services.
These are a few of the digital banking services benefits.
Disadvantages
- Understanding the usage of internet banking might be difficult at the first. That said, there are some sites which offer a demo on how to access online accounts (not all banks offer this). So, a person who is new to technology might face some difficulties.
- You cannot have access to online banking if you don’t have an internet connection; thus, without the availability of internet access, it may not be useful.
- The security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet.
- Password security is a must. After receiving your password, change it and memorize it. Otherwise, your account may be misused.
- Your banking information may be spread out on several devices, making it more at risk.
- You might get overly marketed too and become annoyed by notifications. That said, these can easily be turned off.
- You might become annoyed by constant emails and updates.
These are the few advantages and disadvantages of the digital banking
Types of Digital Banking
Here are just a few of the top digital banking companies in the financial services industry.
U.S. Bank
U.S. Bank so far as skyrocketed from fourth to first place in Insider Intelligence’s 2021 Mobile Banking Competitive Edge Survey as it rounded out its customer service features. Its mobile app offers some of the most sought-after features: the ability to converse with a human agent in-app and authenticate via the app when calling customer service.
Citi
Citi outstrips competitors in the digital money management category by providing five key in-app features: The ability to view recurring charges, see a financial wellness score, get a prediction of future funds after upcoming spending and bills, view accounts at other banks, and receive personalized financial insights.
Zelle
Since Zelle’s launch in 2017, the digital payments network has been adopted by hundreds of US financial institutions to facilitate real-time peer-to-peer (P2P) payments among their customers—a key feature among digital banking providers.
Varo
The Varo digital account has Minimal fees. You won’t pay any fees for monthly maintenance, overdrafts, transfers, foreign transactions and card replacements. But you’ll pay $2.50 for non-network ATMs.
Early payday. Enrol in direct deposits and get your paycheck and government benefits up to two days earlier than you would with a traditional bank.
Up to 6% cashback. Use your debit card at participating retailers and get rewarded, an unusual perk for a checking account.
FAQS
Can a Digital Bank Replace my Traditional Bank Account?
It depends on your personal needs. Banking apps let you fully manage your accounts — savings, checking and more — through your smartphone or computer. If you’ve never stepped into a branch location and don’t plan to anytime soon, switching over might make sense.
But remember that you don’t have to cancel your traditional bank account to use a digital bank. Having multiple bank accounts does not affect your credit score.
How do Digital Banks Work?
Mostly, they work in the same way as traditional banks. But, in many ways, they work better. The biggest difference is the lack of physical branches. You might miss it if you prefer in-person support, but otherwise, the adjustment is fairly seamless.
What is the Difference between Digital Banking and Online Banking?
Online banking describes how customers transact with legacy institutions of physical banks and is more like a service arm of the bank’s suite of products. Typically there is still a need for customers to interface with tellers for more complex issues and financing.
Digital banking encapsulates the dynamics of traditional banking into web-based interactions and service integrations.
They package the core banking services into as many internet-enabled options as is operationally possible.
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