The Rise of Digital Saving Accounts: Why Online-Only Banking is the Future

Digital banking relies heavily on process automation, including web-based services, APIs, and blockchain technology, and it also relies on a high degree of process security. It’s amazing how adaptable digital banking systems are, allowing them to expand their services much more quickly and increase customer satisfaction to the highest level of cost-effectiveness while maintaining security and flexibility.

Digital banking is the practice of conducting all financial transactions electronically without the use of paper documents like pay-in slips, checks, or demand drafts. Without having to go to a branch, it not only grants you access but also allows you to carry out all banking transactions online and get a general summary of your finances. As a result, consumers are able to perform nearly all common banking transactions whenever they choose, without any limitations.

With Fi.Money, you can quickly start a zero-balance savings account online. No paperwork and no additional costs! In less than 5 minutes, working professionals in India can sign up for Fi.Money. Along with its partner Federal Bank, which holds an RBI license, Fi.Money presents the future of safe, digital banking.

• Benefits of having a digital savings account:

Digital banking is increasingly a common practice due to the expansion of quicker internet connectivity. By 2020, digital banks will provide banking services to over 76% of consumers.

• Banking available 24×7

The banking industry is currently undergoing rapid evolution. Without requiring a physical presence, digital banks ought to be able to offer their customers a seamless experience wherever they are at any time. 

Consumers can now utilize most banking services at home, at work, or even traveling. Now investing, moving money, and paying bills online are simpler, faster, and safer. Services that previously needed lengthy delays are now quick and time-free. Filling out paper applications and waiting in lines are practically eliminated. With the advent of biometric e-KYC, voice and video banks have begun using them.

• More profits and lower operating costs

Because digital banking requires nothing in the way of physical infrastructure or human resources, banks’ operational expenses have been drastically reduced. Another factor that has contributed to the growth in revenue is the ability of digital banks to market their goods and services online to younger, tech-savvy generations. With lower service fees, banks are now able to offer customers higher interest rates on their deposits.

• Data gathering

Banks that operate digitally should be better able to use data. Successful online banks use data to give customers a better-tailored experience. Analysis of spending habits, debt obligations, and other data is necessary to make this viable.

• Security

The realities of digital banking are undoubtedly disrupting the financial industry. A crucial component of digital banking is security. The advancements in digital banking have made it possible to address issues with cyber security, such as the necessity to secure consumer data. Data security is improved by the ability to store consumer data in an encoded manner.

Customers now have quick-change options for their transaction limits and security choices, which can also aid in reducing consumer-level financial fraud.

The various levels, two-factor authentication, identity verification, facial recognition, fingerprint scanning, and voice recognition that characterize new-age security in the financial system.

• Customer service individualization

Banks can now provide their client’s useful financial solutions, interactive tools, and instructional resources to improve their experience. Through the use of digital banking software, artificial intelligence (AI) and machine learning (ML) based customization can be made possible. 

• Conclusion

The rise of digital banking in India enables you to maintain a paperless lifestyle while using cutting-edge mobile banking to access your bank account and carry out all your desired tasks. Mobile banking is intended to bring millions of people still without a bank account into the financial system and make banking accessible to all of the nation’s population.

You can use Fi.Money to budget your spending, invest, and save money. Fi.Money is an online banking solution that, in a simple and enjoyable way, teaches you how to manage your money better.

Today’s consumer needs indicate that digitalization is a necessity rather than a choice. Instead, it’s a must for companies and banks since deposit margins are shrinking, there is more competition, and customers’ perspectives are changing. Because of this, India’s digital banking sector has a promising future, and significant advancements in financial services could be on the horizon.