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The Hustle and Bustle of Digital/Mobile Banking

The landscape of banking has been changing vastly in the ongoing decade. The continuing evolution is a result of the quest of the banking industry to become omni-present. The industry is seeking all the ways to evade paper money, in order to change the way people transact. Although it is still to go a long way to achieve it.

With the establishment of electronic banking, the industry has brought a plethora of advanced services to its consumers. The banking industry is yet to reach the unbanked and underbanked market. Digital / mobile banking is one of the most revolutionary products which has introduced electronic payment services to this untapped market. Contrary to conventional banking, which was made available only to those who can earn a hefty amount of income each month. This leaves a huge room to conquer for Digital Banking by reaching those who remain unbanked.

One cannot give complete credit only to the banking sector for introducing this new horizon. Along with this, the joint effort of the telecommunications sector, fintechs and the ubiquitous internet has shaped the nuts and bolts of this new financial technology.

What is Digital/ Mobile Banking?

It is a banking service that facilitates its consumers to open a virtual bank account without providing the bulk of documents that are needed to open a conventional bank account. Hence, any legal citizen who can have a National Identity Card or Citizenship card can open it and utilize electronic banking services. Even those who were not eligible to create a conventional banking account can now bear the fruits of electronic banking services.
Traditionally, a digital banking consumer can perform the following transactions ( Not Limited):

  • Funds Transfer:
  1. To another digital banking customer
  2. To a National Identity Card Holder
  3. To a Bank account
  • Pay Bills
  • Receive Funds
  • Mobile Top ups
  • Request Debit/Credit Card.

Above are some salient features of this service. However, it is usually bundled with more features which vary according to the vision of financial institutions. It is also to be noted that digital banking services are not necessarily offered by banks. However, they can be bank-led too. There are many such applications available on Play stores/ Apple stores which are facilitated by a telecommunication firm or a fintech.

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Advantages of Digital Banking

Technology driven disruptions is changing customer habits and hence digital banking is embracing the surging trend by reshaping the banking technology. Undeniably, it has lead several advantages for its millions of customers who wants to go online. It has changed banking technology in an unprecedented ways, some of the prominent benefits are discussed below.

1- Serving Unbanked

A fruit seller can now have a digital bank account and can run his business on a single tap.

A fruit seller can now have a digital bank account and can run his business on a single tap.

There used to be a huge crowd who remained unbanked or underbanked for ages. Due to lack of service from banking institutions, they relied on alternative forms of financial services to overcome their day to day hurdles in financial chores. With the disruption in technology, the banking industry also needed to accelerate its evolution to meet the pace with it and fulfill the needs of the unserved.
It is not incorrect to say Digital/Mobile banking is a breakthrough banking service which has penetrated the untapped market by enabling everyone to open a virtual bank account and conduct their financial tasks electronically. It has reduced the gap between a banked and an unbanked. From a billionaire to a fruit seller, everyone can now utilize it.

2- Accessibility

In the remote areas where you could hardly find a bank branch, you can now have a bank account in your pocket.

In the remote areas where you could hardly find a bank branch, you can now have a bank account in your pocket.

The Internet has changed life in many ways, thanks to its nature of being ubiquitous. One of the biggest blessings that it endowed is connecting communities of rural areas. Financial institutions have reaped its benefits by launching services like Digital/Mobile banking in the market, which not only facilitates urban consumers but has also made banking accessible for rural communities. Anyone who has access to internet services can open a digital banking account without the need to go to a bank branch or a franchise.

3- Embracing the Changing Demands

Monthly budgeting made easy.

Monthly budgeting made easy.

The urge to go online is on the rise. Similarly, the consumer demand for access to their financial services on a single tap is also surging. This trend has led the key players to re-conceptualize banking technologies. It is foreseen that the future of financial services is changing in the upcoming years. Digital banking is catering to the changing demands of its consumers as well as technology. It has been achieved by bringing all the day to day financial tasks under a single umbrella.

4- Ease of Transaction

Transact from the comfort of your home.

Transact from the comfort of your home.

This platform is giving its customers an edge by allowing them to make transactions from the comfort of their home. It enables them to pay utility bills directly from the Digital Banking Application, hereby eliminating the need to wait in long queues for the turn to pay bills. From making e-commerce transactions to buying a commuting ticket such as a train or airplane, it has escorted ease in transaction.

This content reflects the personal opinions of the author. It is accurate and true to the best of the author’s knowledge and should not be substituted for impartial fact or advice in legal, political, or personal matters.

© 2022 Faiza faraz

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