Digital Banking - 10 Mints Seminar Notes

Digital Banking - 10 Mints Seminar Notes

Digital Banking:

•    Digital Banking is digitalizing of all the traditional banking activities which were usually available physically in the bank branch (Money deposits, Withdrawal, Transfers, and Cheque Cashing etc...)

Digital Banking VS Online/Internet/Mobile Banking:

•    Before understanding Digital banking we must understand that Internet banking and Digital banking aren’t completely same. Then let us take a look at how it differs from one another. For better understanding we’ll see about online and mobile banking first.

Online Banking:

•    Online Banking is a internet based platform which allows its bank customers/users to carryout basic and some intermediate level banking operations over the internet, usually on their bank website using smart devices (PC, Laptop, Smartphone etc…) However Financial institutions will also have physical branches.

Activities Include:

1.    Account Management

2.    Funds Transfer (NEFT, RTGS, UPI etc..)

3.    Bills Payment

4.    Download Electronic Statement of account

5.    Loans Application, Fixed Deposit, Insurance etc…

Mobile Banking:

•    On the other hand Mobile Banking is simply doing the same activities through a Mobile Devices. Mobile banking can be done with and also without the use of internet (Through IVRS services).

Then What is DIGITAL BANKING?

•    To be very precise Digital Banking is DIGITALIZING each and every banking activity, process, and Program there by making the user experience very simple and easy in terms of saving their time and more importantly eliminating the need to be at a physical bank branch.

Key Points:

•    Online banking is just a part of digital banking

•    Automation of every banking process from front-end to back-end

•    It stays completely Online without any physical branches

•    Activities such as Deposits, Withdrawal, Loans, Credit, Debit card Transactions will also be purely online.

•    Chat-Bot interactions for any issues clarification

How Digital Banking Works:

•    Create a digital account or register hour existing account through your bank’s online app or web portal

•    Get your login credentials

•    Login using your secured credentials and enjoy the services provided by the bank

•    It involves the application of technology to banking activities. For every activity to be made using digital banking the user initiates a request via a mobile app or through the bank’s website using the secured credentials provided by the bank.

Need For Digital Banking:

•    Any-time, anywhere banking advantage

•    Low-cost, Low-risk Systems

•    Future Proof systems

•    Ability to launch new products simultaneously and fast

PRO’s & Con’s of Digital Banking

Pro’s:

•    Convenience, the internet is open 24/7

•    Saves Tremendous Time

•    Saves money spent on physical banking infrastructure

•    No time constraints for transactions

•    Instant processing

Con’s:

•    Security Risks (Identity theft, stolen funds, misuse of personal info etc…)

•    Technological issues & service interruptions

•    Lack of personal banker relationship

•    Not always faster

•    More over it diminishes the bank job opportunity

•    Can’t be accessible if network is poor

Present Online Only Banks in India:

•    DIGIBANK BY DBS

•    INSTANTPAY(Neo Bank)

•    RAZERPAYX

•    NIYO

Presented by 

Naveen Kumar

Banking

Magme School of Banking