What is Digital Banking and How Digital Banking Works? – teknospire

What is Digital Banking and How Digital Banking Works?

Digital Banking

I wonder if “Right to go digital” should be included as the seventh fundamental right in India. What do you say? Be it a shop, a salon,or cobbler everyone is aspiring to register its digital presence. And why not when “money” can move digitally,even individuals, organizations,and most importantly banks need to sail via a digital ship. While newer trends suggest Neo Banking making a mark, we discuss a bit about the basics of Digital Banking – what and How. Let’s get started –

Define Digital Banking

Digital Banking is availing of banking services like balance inquiry, funds transfer,etc. via smart devices over the internet like smartphones, laptop, desktop,etc. The services could be expanded via Open API’s,and individuals could even manage their financial portfolio, check credit score, get a preapproved loan,etc.

What is Digital Banking?

Define Digital Banking

Digital Banking is –

  • AVAILING OF BANKING SERVICES VIA SMART DEVICES OVER THE INTERNET
    Now your customer need not queue up in front of the bank branch to deposit a cheque or discuss about
    loan facility. With Digital banking, you are offering all these services via phone or computers.  Even the facility of video call/voice call when integrated can help your customer in enjoying customer support at their convenience.
  • OFFERING BANKING SERVICES ANYTIME ANYWHERE
    Banking needs expansion, as a need for money could arise anytime, it cannot be turned off when there is a bank holiday or at night. You might not want your customer visiting Paris to wait for funds transfer, he/she can do it from there. That’s the power of digital banking -anytime and anywhere banking.
  • ENABLING DIY BANKING SERVICES FOR THE CUSTOMER
    Are your employees bored to stating the same procedure of opening a bank account to every probable customer that lands onto your branch? Automating and enabling DIY services helps is engaging your customer quickly and conveniently.
  • MORE PERSONALIZED SERVICES AT CUSTOMER’S CONVENIENCE
    Time is crucial for your customers, and so are the services, the digitally savvy customer looks for organizations that offer seamless digital services at their “time.” Lay down the offerings that attract the
    digital nomads and propagate via digital channels when they wish.
  • POWERING SERVICES WITH OPEN BANKING – OPEN API, OPEN DATA
    Harness the power of Open Banking, integrate, expand, and let your customer experience the power of banking. Open your API’s for other third parties to hook up with you and offer best in class banking experience
  • ANY MEDIUM EXCEPT THE “PHYSICAL BRANCH.”
    Digital Banking is all except a physical branch, move beyond four walls, and explore the potential of the bank with virtual walls.
  • ALL ABOUT INNOVATION AND AGILITY
    Get feedback, conduct surveys, and market research, understand your customer, adopt newer technologies and innovate to offer banking as an experience.
  • SECURED BANKING
    Digital Banking is absolutely secured if you and your bank keep their software updated, fix loopholes install security measures, and as a customer you own your password and OTP’s, never sharing with anyone or writing it down.

How Digital Banking Works?

How Digital Banking Works

The working of the digital bank is simple enough –

Imagine a cloud [ yes the blue colour one], now on that cloud draw a bank with your account details and money, secured with a big lock. How do you access that? For that, you would be provided secured credentials from your bank to login via mobile banking or internet banking. As soon as you punch your valid credentials that big lock on bank opens up and what next? It also opens up a bouquet of banking services for you to avail.

However, technically it’s bit complicated, but let’s make it simple –

So you as a customer have requested “Digital Banking services” what happens –

  • BANKS/SMB’S /PAYMENT BANK’S INITIATE’S A REQUEST OR CUSTOMER SIGNS
    UPA request is initiated to enable digital banking facility in the banking software via a mobile app or through the bank’s website
  • THE REQUEST ONCE ACKNOWLEDGED IN THE BANKING SYSTEM PRODUCES VALID CREDENTIALS
    Once the KYC [if needed] are validated the request is acknowledged and processed to provide successful user signup or valid credentials are sent to him via email/post/SMS. The credentials need to be memorized and never be shared with anyone
  • ENJOY A BOUQUET OF BANKING SERVICES
    Once signup or credentials are received, the user could avail banking services via a mobile app or through the bank’s website.

If you are willing to craft “banking as an experience” for your customer, we would be glad to assist you with our banking solutions of Digital BankingMobile BankingData AnalyticsReconciliation and Neo Banking.

Give us a shout; we are just a call away!