Digital Banking

Last Updated on January 19, 2017 by Bharat Saini

Digital banking is an idea whereby we have a banking system created with a vision to cater to the needs of customers through digital augmentation. The concept of digital banking is totally founded on   digital core infrastructure consistent with enterprise wide, cleansed data store which is accessible internally as well as externally to the customers through strata of access layers. The establishment of digital banking system was necessitated because of customer’s inclination to have range of choices and adopt so many different methods to access.

Digital Banking Digital Banking is the application of technology to ensure seamless end-to-end processing of banking transactions/operations; initiated by the client, ensuring maximum utility; to the client in terms of availability, usefulness and cost; to the bank in terms of reduced operating costs, zero errors and enhanced services.

The whole idea revolving round the digital bank is outreach through access both in physical and digital form. But if we describe in simple terms the access to the digital core is motivated by the choice the customer wants to have while conducting his business with the bank. To mention it elaborately it may be noted that if a customer wishes to call the contact centre, visit the branch, or touch the bank’s mortgage offers via a Google search engine the bank will be aware of all his enquiries, activities, access points and touches because the bank possesses a digital core and hence will respond accordingly and consistently.

Digital Banking is a phenomenon which is fully ready to respond to everything that is digital. The medium through which it work is social media on the network which is mainly focused upon being easily available to the customer in their day to day financial dealings with the bank. Keeping human contact alive with the bank is what constitutes the chief concern of digital system. This human contact or say touch point may be streamlined through the mobile telephony or face to face through video link. The biggest advantage of digital banking system is the bank has all kind of knowledge about the customer. The issue of Know Your Customer becomes integral to the banking system with no extra paper work as it is automatically linked to the database in digitally guided system. The banks at any time can leverage data as competitive differentiation with an objective to have single view of the customer as the ultimate view.

Benefits to the Digital Banking For Banks : o   The elimination of costly back-office processing operations. o   Fewer (or ideally no) errors. o   smaller branch footprint (the typical branch can become a kiosk affair, providing technology interfaces for the client to use plus the ability to deal with banking specialists via a video link) – a minimum number of actual staff will be required. o   Concentrating banking/business specialists in a single centre, who are then available to clients via a technology link (either on their mobile, pc or via a kiosk branch). o   Dumping Legacy Systems. Benefits of Digital Banking For Customers : o    24/7 bank services and availability through your mobile, pc or kiosk branch. o    ‘Smart Banking’ applications that allow ALL transactions to be completed from the device of your choice, from beginning to end (with clear instructions and fail safe mechanisms). o    Access to a FULL range of services (savings, investments, insurance, loans, mortgages, foreign currency, etc.). o    new useful client services such as warnings, notifications, budgeting, expenditure analyses, savings programs, calculators (you name it – the range is endless). o    Lower charges (and therefore cheaper banking). o    Banking that meets the client’s needs (not the banks).

For the world of digital banking system being digital is not just project or business but culture itself. Clearly all those who are part of this system have to be assimilated into this culture. It is not as if the bank has separate branch in form of digital team or digital department the concept is related to the whole and represented by the whole. Since digital forms the core of the system it is supposed that everyone who wants to associate with the system or integrate into their core have to be naturally oriented towards the process digitalization of banking the sooner, the better. It is considered the duty of everyone who is rendering his professional services in the banking system to get acquainted as to how to apply digital series to motivate the customer towards the system convincing him as how the services he wants to take or hire at lower cost and with an intimacy and data differentiation efficiently fits in this digital age. They don’t allocate separate budget. So to conclude that digital banking is culture, a passion and constant process in which all other considerations are subsumed and the concern in it to achieve the proximity to the large base of customers dominates the plot and takes precedence over other concerns related to banking system. So now say banking means only digital banking.