Digital banking is the digitization of all traditional banking activities, functions, and services that were previously available to customers only when they are present physically in a bank. Digital banking is a part of online banking that involves services such as money deposits, withdrawals, and transfers, checking/saving account management, applying for financial products, loan management, bill pay, and account services. Digital banking is the broader aspect of online banking.
Many banks are accepting the digital banking concept rapidly because of the following reasons
1. Digital banking reduces the cost of expensive hardware and software to keep these systems to maintain and update the data
2. Digital banking helps to increase revenue and help them become more customer-centric
3. Digital banking helps to attract and retain customers and stay ahead of the competition
4. Digital banking helps to remain compliant with new legislation
5. Digital banking helps to explore the benefits of new technologies
Digital banking is one of the best things happened to human beings. Day by day it is gaining high popularity due to
1 Previously you have present in person in the bank to perform all your bank related activities without option but digital banking becomes a blessing for especially to the working class, elderly and physically disables people that they do not need to take out extra time for bank work.
2 As digital banking is available 24*7 with holidays it becomes more convenient to operate whenever and wherever you want to.
3 Keeping track of the transactions, remembering of the due dates of bills like electricity, gas, phone, paper, credit card, and loan installments is a very big and difficult task in the paper era we can say but due to digital banking, the online applications make you remember the thing by giving reminders through notifications.
4 Automatic payments help us to avoid the penalties for late payments which were happened earlier before digital banking.
5 The population of the rural areas is more benefits to digital banking as it avoids the pain of travel to the nearby big city for transactions. At the time of emergency, it becomes easy to do the transactions in one mobile click.
6 It becomes easier to pay income tax by avoiding lots of paperwork. The government challans payment also becomes easier and quicker.
7. You need not memorize the transactions; you can directly check it from the transaction history of the application.
Key players operating in the digital banking platforms market include ebanklT (England), Backbase (Netherlands), Finastra (UK), Fidor (Germany), BNY Mellon (US), TCS (India), Appway (Switzerland), NETinfo (Cyprus), Kony (US), Technisys (US), SAB (France) among others.
The market development occurs through new product launch, strategic mergers, acquisition, joint ventures, and agreements of the top market players. For example, in December 2018, Temenos AG a Company specializing in enterprise software for banks and financial services acquired the US-headquartered SaaS Vendor Avoka to strengthen its leading digital front office banking product similarly, In August 2019, Temenos acquired Kony, US digital banking SaaS Company, to accelerate Temenos Infinity, the revolutionary cloud-native, cloud-agnostic digital front office product, and its US strategy.