How Digital Banking Services Make Your Life Easy?

The banking industry has undergone a dramatic transformation during the previous decade. With the advent of digital banking came the worlds of online bill payments, phone banking, digital check deposits, person-to-person transactions, electronic wallet, and other services. These online banking solutions are all designed to make your life easier.

The Rise Of Digital Banking

Online banking solutions, believe this or not, dates back to the early 1980s, albeit the technology’s efforts during that period were at best basic. But it was not until the 1990s that so many banks began offering online banking services to their clients, and it wasn’t until the 2000s that the introduction of mobile phones with online banking software truly became a practical choice for many people. Throughout this timeframe, online banking has grown in terms of service offerings. 

Users, for example, have successfully been able to log in to their bank accounts, examine numbers, transfer funds between accounts, and arrange invoice or credit card transactions. Additional services, such as remote payments, have just recently become possible with the introduction of cell phones (and phone cameras).

Online banking isn’t technically the “norm”—at least, it wasn’t before COVID-19—but it’s well on its way towards becoming such. Almost all banking solutions now not only have portals designed to make internet banking simple and intuitive but also phone applications that put the majority of those services right on their clients’ mobiles in a secure manner, no less.

The Benefits Of Online Banking

The advantages of online banking software are the same whether you term their internet banking, phone banking, or online banking. Among the many advantages are:

  • An online banking solution system enables you to assess financial accounts with a few mouse clicks or keyboard inputs, which is significantly more efficient than checking your local bank services.
  • When opposed to the commitment of travelling to the bank, standing in a queue, and having a banker perform the transfer for you, digital and mobile banking makes transferring money between financial accounts a matter of seconds.
  • Mobile banking applications include a tool that helps you to deposit checks into your wallet using only your phone’s camera, sparing you a trip to the bank and offering you a speedier option to have your checks deposited so you can retrieve your cash.
  • Digital banking makes it simple to view old transactions, which streamlines expense management, cheque book balancing, and monitoring for questionable or fraudulent bills.

The Digital Banking Options

Internet And Mobile Banking: internet banking refers to getting some banking facilities like transferring money and accounts opening and closing online.

Immediate Payment Service (IMPS): Immediate Payment Service is an instant payment interbank electronic funds transfer system. The payment service allows inter-bank electronic fund transfer service on mobile phones. IMPS is available 24×7 365 days including bank holidays.

Unified Payments Interface (UPI): At the moment, UPI is the most popular kind of online banking. UPI employs a digital payment address to allow users to send and receive money without inputting their bank account information or IFSC code.

Mobile Wallets: Mobile wallets have completely removed the need to memorize four-digit card passwords, submit CVV information, or carry loose money.

Conclusion

In today’s world, your cell phone serves as your virtual front door to the world of finance. Bankers are now attempting to move away from traditional concrete block systems by spending heavily on financial innovation.

Digital banking services imply personalised interfaces, heightened security, superior and broader range of services; this is fantastic for customer relations.

While fintech companies and banks investigate the possibilities of AI in the financial sector, online banking systems may deliver more comprehensive services in the future.

What are the Payment Solutions that Banks Require in Modern Times?

The payment solution that banks require in modern times is Online banking. It is also known as Web banking and Internet banking. It enables the customers to make open payments from any application. There is no middle person and no unnecessary fees for the transaction. It makes communication easy with both parties. That is the customer and the bank. Online all banking solutions enable a customer to conduct any financial transactions via the Internet. 

Modern banking services contain innovative products such as Core Banking Solutions; Demat accounts; Debit card/Credit card; No frills accounts; Net Banking/ E-Banking; Mobile banking, Automated Teller Machines (ATM); Insurance, etc. These are some of the Modern banking services. This online banking provides customers with Services that are traditionally available in a local branch that contains deposits, transfers, and online bill payments.

Services that are provided in online banking services

  • To receive notifications, warnings, alerts, messages, this can be updated directly from the bank.
  • To chat with the bank and get information on the following:
  • To Pre-approved the loans
  • It enables Mini statements
  • Receive Card details
  • Fixed deposits
  • Credit Card balance and reward points
  • Helps in Funds transfer
  • Bill payments transaction 
  • To be notified about recent updates
  • Cheque Book requests
  • The payment feature is already underway and will be functional soon.

Core Banking Solution (CBS):

Core Banking Solution (CBS) is the connectivity of banks through networking their branches. It enables the consumer to manage their accounts. It provides available banking services from any branch of the Bank on the Core Banking Solution network. No matter where the account will be. The consumer becomes the bank’s customer. Under the Core Banking solution, they are interconnected with each other.

  • The core banking solutions are entrusted with protected services.
  • It sends notifications, warnings, information, and proposed Communication to customers. 
  • It also provides a keyboard-based auto-response
  • They provide the customer with a communication facility. That is two-way messaging.
  • They provide flexibility to their customers.
  • They have optimal control over their bank services.
  •  They enable us to obtain money online.
  • To deposit a cheque for credit into the account.
  • It enables the deposit of cash into the account.
  • To deposit cheques/cash into the account of some other person who has an account in a core banking solution branch.
  • To get the details of your account statement and online banking solution. 
  • To transfer the funds online from an individual’s account to some other account – have to provide both the accounts of Core Banking Solutions branches.
  • To obtain Demand Drafts from any branch on Core banking solution – the amount will be debited to the account online.

Net Banking:

It is the easiest way to go hand in hand with online banking. It is convenient for all, and the banking can be done from any place. It transfers the funds, payments, recharge, bills, balance inquiry, etc. without any delay. Each customer has his Identification no. and passport. It makes net banking easier. It is also known as electronic fund transfer. Online Digital banking solution enables the customer to conduct financial transactions through the internet. Consumers need not visit the bank for their basic transactions. A customer needs a mobile, their ID and password, an Internet connection, and a bank card to register. Once registered then the consumer is all set to use the online banking services.

Mobile Online Banking:

Mobile Banking is a medium provided by the bank for the customers. It enables them to make financial transactions through their mobile. It is also one of the easiest ways for online transactions. It enables us to transfer the funds, payments, recharge, bills, balance inquiry, etc. without any delay and query. 

Various online Banking services offer online banking varied by a different organization. Generally, many online services offer basic services like transfers and bill payments. While some banks allow their customers to open new accounts online. They also provide applications for credit cards through online banking portals. Other functions like change in address, ordering checks, stopping the payments on checks

Bottomline

Finacus has been one of the leading companies that is providing path-breaking banking products and services that are making banking easier, smarter, and safer for both end-users and service providers. To know more about these products, please contact us for a demo. 

The Disruption Of The Banking Sector Has Already Begun

Banking has seen two distinct life cycles in the last 50 years. Till the earlier part of the 20th-century bankers were staid individuals wearing pin-striped suits who rarely budged from the straight and narrow. The phrase ‘As safe as a bank’ was not just indicative of the cautious nature of bankers but also their orthodox way of thinking. It was all in a day’s work for them to turn away prospective clients if they did not fit into the narrow qualifying criteria. Then banking jumped over to the other extreme of canvassing crazily for business. It wasn’t uncommon to find senior bankers wait hours outside the office of a prospect, just to see if some new deposits could be collected. And now we are ready for the next wave of banking.

The Next Wave

We are already starting to see a paradigm shift in how all banking solutions are being brought to the customer’s doorstep. Or to be precise, to the customer’s mobile phone. We are hurtling towards a new world of banking at breakneck speed. A world which doesn’t need bank branches, salesmen, or even call centers. The bank is with the customer 24×7, at his beck and call. The bank is not bound by any constraints of location or time. Let us examine a few examples of the disruptions that we have already begun to see in the banking and financial services industry (BFSI).

Stock Trading with Robinhood

Just like one goes to Google Store to download a game to play, one can download the stock trading app Robinhood. You don’t pay any fees and you can use Robinhood to trade in stocks or funds or options. The days of applying for trading accounts is well and truly over.

Loans from Lending Club

Loans are the most popular ones out of all banking solutions. But banks have been known to sit on applications for ages and reject applications arbitrarily. Lending Club is a peer to peer loan marketplace that does away with the need for a bank. It matches the needs of borrowers who need money and investors who wish to make profits from interest earned on loans.

Payments Systems from UPI

The Unified Payments Interface is a real-time payment system that does not rely on clearinghouses, cheques, and banks for transferring of payments. It uses a mobile platform to help transfer funds from one bank to the other. It was launched by NPCI (National Payments Corporation of India) and it facilitates digital payments in this digital world. Several companies like www.finacus.co.in are partners in this initiative.

Investment Advisory from Betterment

This is an automated online investment advisor which seeks to replace the services of human investment managers by the use of algorithms and analytics. As long as the client can keep his account funded, Betterment would continue to fine tune the portfolio to meet the stated investment goals.

Conclusion

These were just four randomly chosen examples from around the world. But there are thousands of disruptive ideas just beginning to take shape out there, which promise to change the banking industry beyond recognition.

AI in Banking Sector in India.

Lately Artificial Intelligence or AI has garnered a lot of attention amongst the general public. Every day you hear about a new development related to AI. Artificial Intelligence (AI) is the capability of machines to think on their own and implement tasks without human involvement. Technologies like machine learning, deep learning, image and speech recognition, etc. make this possible. AI is being used in many sectors like banking, ecommerce and healthcare to automate processes and save costs. Continue reading