Role of Digitization in Banking Industry and Advantages

Banking is one of those industries which has undergone a humongous digital shift. Gone are the days of the physical bank branches. The digital era has begun, and customers expect a consistent and smooth experience across channels – be it online, mobile, or the bank branch. From internet banking solutions to mobile banking activities  to e-wallets, latest trends are emerging in the online banking space,

The potential that digitisation holds is so enormous.and it can transform every industry  by connecting people, processing and analysing data amongst the things. In particular, this holds true for the Indian banking industry, which needs to be digital-ready to embrace this new technological wave.Today,customers are seeking an interactive banking experience

The banking industry of India has been growing at an accelerating rate over the past decade or so.customers like us as well as banks and corporations,have benefited a lot by using the new technologies that banks have adopted to make the whole experience digital and user-friendly. E-banking has resulted in cutting costs for the banks and at the same time, it has increased their user base which ultimately helped them generate more revenue through various channels.

The Indian government has been aggressively promoting digital transactions on its Unified Payments Interface (UPI) system and BHIM app, the foremost agenda for all the Indian banks should be rapid digitisation.

Digitization has decreased human error by a huge margin and It is now possible to access and analyse the data anytime anywhere.The new age has brought us Mobile banking, which refers to the use of a mobile or any  other cellular device to perform online banking activities anytime anywhere. Activities such as monitoring account balances, transferring funds between accounts,payment of bills, locating an ATM etc.

The Role of Digitization in Banking Industry & Its Advantages:-

  1. Better customer experience . benefits of Mobile banking , online banking,UPI can be used anytime and anywhere.
  2. Cutting down costs for banks as well as customers by using ATMs, cashless transactions etc.
  3. With more digital data at disposal with banks, they can make data-driven informed decisions by using digital analytics. This benefits both customers and banks.
  4. Technology is non-discriminatory. Everyone will be treated the same.
  5. Number of customers will increase for banks resulting in revenue generation because of the increased convenience of banking services.
  6. Digitization reduces human error by a huge margin.
  7. Opening and maintaining bank accounts are easier and Mobile Banking apps provide a user-friendly experience.
  8. Customers are free from various hectic processes of banks, like standing in queues to make transactions.

Digital transformation is all about providing various benefits to the customers on online and mobile platforms.The traditional banking approach needs to be integrated with digitalisation. It will ease the human interference that is both practically accepted and helpful.

Due to rapid increase in the usage of smartphones, digitization of the banking sector is inevitable and has  to catch up with the ever increasing expectations of the consumers . It has indeed decreased human errors and increased user friendly experience.