Digital Banking

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Digital banking is banking activity conducted entirely online, either through a website or mobile app. It lets customers perform banking transactions and access banking services remotely, without having to visit a physical branch.

Benefits of Digital Banking

Whether you’re already all-in on digital banking or you’ve yet to download your bank or credit union’s mobile app, it’s important to know what to look for when banking online. Here are some of the primary benefits offered by digital banking.

1. Convenience

The ability to bank wherever and whenever you want is one of the main benefits of mobile and online banking solutions.

Many mobile banking apps, for instance, let you deposit checks remotely. At the same time, you can check your balance, transfer funds and set up a notification to alert you if you overdraft your account—all without the need to visit a branch. It’s a real time-saver.

Digital banking also offers additional conveniences, such as the ability to go cashless.

Paying with cash isn’t as convenient as an electronic transaction, Cohee points out. Electronic transactions are more secure (you aren’t carrying cash), they’re more sanitary (you aren’t touching cash) and you can track your transaction electronically, he notes.

2. Features

Many banks’ mobile and online experiences offer just as many features as banking in person—if not more.

“Banks might offer personalized financial advice, savings tools, big-purchase calculators or even virtual assistants, all within the convenience of an app,” says Matthew Williamson, global vice president of financial services for digital consultancy Mobiquity.

Banking apps typically let you complete everyday banking tasks, like viewing statements and account balances, transferring funds and paying bills. Mobile check deposit, which lets users cash checks from their phone, is also common.

Features like peer-to-peer payments might not be top-of-mind, but the ability to send money in minutes through your mobile banking app can be handy, and many banks now offer this feature. Locating nearby ATMs, cardless ATM withdrawals and budgeting and tracking tools are other perks your mobile banking app may offer.

Some banks even offer the ability to chat with a live representative through their apps, which Williamson points out can bridge the gap between in-person and digital banking.

“Consumers should seek out banks that prioritize offering a human touch even in their digital channels, striking the right balance between the human element and digital automation,” says Williamson.

3. Security

“Security is a No. 1 priority for financial institutions,” says Cohee. And that extends to mobile and online banking.

Threats exist everywhere, including inside bank branches. Fortunately, many banks make it easy to take extra security precautions. For example, your bank may let you add multifactor authentication to your mobile app and online bank account.

Many mobile banking apps also let you use biometric authentication to log in. Axos Bank’s app, for instance, provides biometric login options that require your fingerprint or facial recognition. Your bank may also scan for certain risks automatically. Ally Bank asks for additional verification if it detects a login from an unknown device.

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Overall, you may be more secure than you think when using digital banking.

4. Control

Having control over your finances with the ability to self-serve is another significant benefit of digital banking, as is real-time access to managing and moving money as you see fit, says Williamson.

Unlike banking in person, mobile banking apps and websites generally have no restrictions on when you can perform banking tasks, like depositing a check or moving money from one account to another.

Banks are continuing to advance the features offered on their digital banking platforms. Automated savings tools and push notifications for events like low balances or overdrafts are commonplace. In many cases, you can even activate a new debit or credit card from your app.

Banks are continuing to advance the features offered on their digital banking platforms. Automated savings tools and push notifications for events like low balances or overdrafts are commonplace. In many cases, you can even activate a new debit or credit card from your app.

Conclusion

Mobile and online banking can help you take control of your financial life, providing easier access to important tools and features. But digital banking can also offer benefits beyond banking, connecting you to a community and banking opportunities specific to your wants and needs—regardless of where you live.

Make your website appealing for visitors so they will return and buy from you.

Author

Jubril Damilare Somade

Tech | Childhood Educator | Entrepreneur

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