Meaning and impact of digital banking on the future of banking
With the advent of the internet age, traditional banking has been replaced by more contemporary and convenient banking modes. Today, we hear the term 'Digital Banking' all the time. However, with newer forms of banking emerging, it is crucial to understand what the words' Digital Banking' entail and how it will impact the future of banking. Continue reading this article to understand the same.
Essentially, Digital Banking refers to banking products and services that are available without physically visiting bank branches. The term 'Digital Banking' is an umbrella term, including internet banking services and mobile banking. While you can access online banking services via various avenues, mobile banking is accessible only through mobile apps or SMS services.
These sub-categories of Digital Banking can help you in conducting day-to-day banking transactions and activities. However, the term 'Digital Banking' has a broader context and encompasses financial services and products that facilitate commercial ventures and retail merchant businesses. With its rapid development and increased applications, many experts believe that Digital Banking is the future of banking.
The following factors will contribute to the future of Digital Banking in India:
With emerging technological advances, the customer-bank relationship has been redefined. You can become more attuned to the benefits provided by such banking technology. Except for cash deposits, you can conduct most banking transactions from any corner of the world. Through their constantly updated and robust online platforms, banks allow you to make investments, transfer funds, open accounts and do a lot more. Today, there is an upswing in open banking services, with emphasis on engagement. Moreover, banks are launching eponymous super-apps, which are akin to carrying your bank in your pockets.
Banking technology-enabled super apps function as your one-stop solution for all your financial requirements. These apps allow you to access various financial products and services through a single portal. You can download and sign in to these apps using passwords or facial recognition and fingerprint technology, thereby securing your banking information. Once you sign in, you may utilise different aspects of virtual banking, including social media, messaging, marketplaces, and payment portals.
For a long time, banks held a monopoly over making cashless payments, whether it was through credit and debit cards or into the digital era via internet banking. However, now several companies have created third-party payment portals that are reshaping the traditional payment-making landscape. With the rise of such payment portals or UPI services, modern banking has digitised in various ways. Such payment portal companies have created extensive networks with merchant and retail brands through partnerships, while others address particular problems in the payment system.
As technology evolves, there is no doubt that Digital Banking is here to stay. At DBS Bank, we understand the significant impact of Digital Banking and how it can make your life easier. As such, we empower you to conduct your everyday banking activities through the digibank mobile app and internet banking platforms.
Download DBS Bank app to get started and open your savings account online with us.
*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.