Digital banking is the future of banking. It has proven itself by its amazing services and functionality. It seems now that everything can be done online.
What is Digital Banking?
Digital banking is the combination of online and mobile banking. Digital banking is a platform where all the services are available over the internet. It digitized all the traditional services and activities that were only available physically before. It digitizes all the banking levels from front end to back end operations which automatically alleviates the pressure from the employees. Unfortunately, banks cannot afford and invest in the digital transformation as a large number of consumers have shifted to online and digital banking. In this way, we have observed that consumer behavior has changed quickly and now they are more interested in online and mobile banking.
Today, more than 75% of consumers report online banking once a month. Most probably by the end of this year, many other banks are expected to transform into digital banks. What could be more significant than this is that half of the total banks are trying to be digital banks. Services or activities that will change into digital banking are:
- Account services and bill payments,
- Loan management, accounts management, money deposits, transfers, and withdrawals,
- Application for financial products
What is the Difference Between Online and Digital Banking?
Many individuals argue that online and digital banking are the same; although digital banking is much more than online banking, these two are synonymous. The scope of online banking is much narrower than digital banking and just transforms the money transfers, bill payments, and deposits remotely. Thus online banking primarily focuses on digitizing only the core aspects of banking. In contrast, digital banking is more than online banking in that it digitizes all programs, activities, and other financial transactions. Hence the scope of online banking is limited, and many consumers are demanding digital banking.
Digital Banking Saves Your Money in Multiple Ways
Digital banking is the new financial trend all over the world. There is no need for any bank buildings and in-person meetings, demand while some consider this a drawback as everyone has a different perception of banking. The overall cost of digital banking is much less than online banking and traditional. Here are some ways of utilizing digital banking to save money:
Not Much Costly
There is so much cost needed in traditional banking, from maintaining the bank branch physically to the security, staff, bankers expenses. Starting any traditional bank requires a considerable amount, and eventually, it becomes a costly endeavor. And to make up these expenses, they drive up their interest rates and fees. This digital banking reduces all the overhead costs of banking and offers lower interest rates and other fees. There will be a staffing and call center maintenance cost as you need someone to talk to and for guidance.
ATMs are costly to maintain and their usage fees. Traditional banks bear the cost of these ATMs. While digital banking reduces the need for ATMs as they are usually partnered with national ATM companies and provide terminals to the users from where they can withdraw and deposit money. This digital bank saves their and yours money from paying maintenance costs or other cash transfer fees.
Improved Interest Rate than Traditional Banking
Loans, credit cards, and saving accounts all operate on interest rates. For instance, if you got a home or car on loan, the interest might be about 25% to 30%, which will skyrocket your borrowed amount directly, especially when using credit cards. It is a typical way for banks to make money to pay their overheads. That’s why they charge some extra amount to compensate for their expenses. The same goes for saving accounts as they charge some interest rate on your money but if you will use digital banking it will turn your funds and saving accounts into huge profits. Digital banks increase your saving money and amounts based on your balance amount.
Time is Money
Digital banking has proven the old term that time is money. The less time you spend on banking the more efficient your finances are. In traditional banking, you waste your precious time standing in lines for any cash transaction and withdrawal, but there is no need to stand in any queues in digital banking. All your data and funds are stored on a secure online portal from where you can easily access your accounts, transfer funds, and other payments.
Quantopay- the future of digital banking
As we all know, consumers are switching their banking from traditional to digital. Digital banking has become the first priority and choice of the customers. Actually, the success and demand of digital banking lies in the features and services they are offering. As we are discussing digital banking then it would be unfair to not discuss the very first global, digital bank of the world ‘Quantopay’.
Technically Quantopay is a fintech solution blockchain-based banking app where you are free to earn, save and transfer money. It provides hassle free-banking solutions and experiences to its customers or users. It helps you keep track of your accounts and transfer money safely and securely without the involvement of any intermediary. Additionally, their blockchain integration allows crypto users to manage their portfolios and digital currencies.
Hence digital banking is the talk of the town for the financing community. By digitizing the traditional ways of banking, it changes the dynamics of banking. Thankfully, more and more players are stepping into the FinTech industry to populate the market, increase competition, and fill the voids left by other initiatives. However, the basic idea remains the same for most firms, to revolutionize the traditional banking methods and provide a variety of options to the public for utilizing their money