What is digital banking, a term that you’ve heard so many times nowadays? Digital banking is the automation of traditional banking services. It allows customers to access banking products and services via an electronic/online platform. Thanks to the convenience of digital banking, many customers don’t have to go to a brick-and-mortar bank anymore.
The reason why digital banking is the current “It” service is that it provides a service beyond banking. Not to mention, the pandemic. Everyone dreads going outside, even just to a nearby ATM. Paying with cash is frowned upon and online shopping is all the rage. In a world where time is money, digital banking opens up so many facilities that make life easier. You may not realize it, but you may have been using digital banking for a while now.
Advantages of Digital Banking
Customers now can do all kinds of transactions, anywhere and anytime they need. Digital banking is the titan of today’s banking process; everyone needs to have it. Imagine yourself stranded out of nowhere with no ATM in sight. This scenario would be a nightmare had it happened three years ago. But now, you’d still be able to book a flight, order some foods, and rent a room using a digital banking app. Here are several reasons why digital banking is the superior option for you:
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Enter a cashless society
Carrying cash is a hassle now. Cashless is better for the environment and much more efficient. People can go wherever they want without carrying a wallet. With their phones, they can shop, dine, and pay their bills. And the best perk is to never worry about spare change.
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All the features for 24/7
Digital banking has most of the features that an ATM has. You can do all sorts of transactions at the comfort of your home. Forgot to pay your bills and they’re all due today? No worries, just pay from your digital banking app. Want to check if your salary has been transferred? Say no to a long queue at the ATM, simply open your digital banking app.
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It’s secure
Digital bank providers are aware of cyberattacks that target their users. Hence, most digital banking apps add multi-factor authentication, either with passwords or biometrics. Some even send an additional verification to the user’s phone number or email to prevent unauthorised access.
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Helps you manage your finances better
Within one app, you can navigate all your transactions and plan your finances ahead. It’s also easier to open a new savings account or buy investment products online.
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Teaching financial literacy
This newfound connectivity allows financial service providers to reach new customers. People who live in rural areas can still access banking services digitally.
Digital Banking Products
What is the digital banking ecosystem? Well, it can be bigger than your average branch office or ATMs. In a singular app, digital banking provides products & services such as:
- 24/7 customer service
- Automatic payment for utility bills
- Online payments
- Online bank statements
- Transfer of funds
- Cash withdrawal
- Loan applications
- Investment and savings account registration
- Cheques management
- E-wallets
- Payroll software
- Point of Sales system
Online Banking vs. Digital Banking
As digital banking relies on internet connectivity, surely it’s the same as online banking, right? Not really, because digital banking is an umbrella term that covers both online and mobile banking. Online banking refers to only specific kinds of financial services whereas digital banking also offers products that can be used in businesses like physical stores or online merchants.
Who Offers Digital Banking?
From renowned traditional banks to online banks, Malaysians have many digital banking options. Digital services offered by brick-and-mortar banks are more like the extended version of their current banking products. Whereas online banks are bolder; they attract customers with high-interest rates and low fees. In Malaysia, big players like CIMB, HSBC, and Maybank have their own digital banking products, which compete with online banking apps like BigPay.
Whatever your choice will be, be mindful of your digital transactions. Digital banking, inclusive of online and mobile banking, gives people more ways than ever to access the functions they need to keep their finances in order. As the Covid-19 crisis has demonstrated, in-person services, in general, can’t be taken for granted, and banking services are no different.
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