Digital Banking - Transforming the Future of Finance

I have seen my Grandpa struggling in a bank queue just to send a money order to my Aunt during a festival. I have seen my Dad struggling to get a Demand Draft from the bank to deposit my college fees. I have grown up seeing all these struggles, and now when I see them using UPI and mobile banking, I actually feel that the future of finance is transforming.

And this banking transformation is a boon to the society. Though digital banking was introduced a long time back, many people were initially afraid to do online transactions, but thanks to demonetization, the entire scenario changed completely.

What is Digital Banking?

Nothing extraordinary, just a concept that removed the requirement of physical presence in banks for each and every transaction. Technology is moving forward in every sector, and so is the banking industry. We have all heard that “Necessity is the mother of invention,” and digital banking is one such invention.

You can access your complete account details while sitting anywhere in the world and need not visit the bank for your transactions. You can either use mobile applications or net banking, which reduces your wait time for physical transaction processing.

What can you actually get from it?

Banks have introduced completely new platforms so that you do not have to visit their branches for transactions. They have created a whole new virtual bank that you can actually use anywhere, anytime. You can now –

Check your account balance and statements at your fingertips.

Transfer money to someone via IMPS, NEFT, RTGS, and UPI payments as per your convenience. The procedure is almost the same for all banks; the only difference is the interface, which you can get used to with frequent use.

Pay utility bills through your respective bank’s mobile applications or navigate to other payment applications that have this feature.

Apply for additional services and products like loans, FDs, RDs, credit cards, investments, etc.

Connect with Customer Service - At times, you might feel stuck somewhere in the middle and want a resolution. The service department is also available to make the digital platform smoother for you.

Go Digital Platforms

Banks offer multiple ways to use their digital services –

Net Banking/Online Banking - When you apply to open an account, you will be asked to opt for net banking, and it is available with all banks. You will get your login ID and password and can access your account on any browser.

Mobile Banking - Banks now have their individual mobile applications, which are much more user-friendly and easily accessible than net banking.

Debit Cards/Credit Cards - Cards are highly used for making online payments along with their traditional use for ATM withdrawals.

UPI (Unified Payments Interface) - Coming to the ace of digital banking, this UPI payments has completely changed the scenario and made banks available 24/7 for daily transactions and has built a cashless economy.

Is digital banking safe?

With digital banking, comes digital fraud as well because every facility comes with its own cons, and here arises the question, is “digital banking” actually safe?

Yes, it is!! But you need to follow some basic precautions. Though banks have their own set of security measures, you still need to keep yourself secure by following some simple rules like –

Do not share your OTP with anyone, not even with someone from your own bank, as banks never ask for OTPs.

Using strong and unique passwords and changing them at regular intervals, like every 6 months or a year, will help keep your account secure. Some banks have made this mandatory, but you should try to follow the same for all accounts.

Avoid using public Wi-Fi for banking transactions, as this is highly risky.

Always download applications from trusted sources since fake apps can create the threat of digital fraud.

Enable transaction alerts through SMS and email so that any unauthorized activity shows up immediately.

The Journey Has Only Begun

Digital banking has transformed the way people deal with money and has made financial transactions far easier than ever before. From instant transfers to personalized banking experiences, technology has increased customer’s expectations and changed their everyday financial routine.

Moving forward, in the world of AI, technologies are reaching new heights, and more advanced versions of banking will be introduced soon. Despite all these changes, the pillars of banking will remain the same, i.e., trust, reliability, and customer satisfaction.

The big shift from traditional banking to digital banking has already changed the financial world, but the journey towards a digital future has just begun.