Like anything in the world, digital banking has several benefits as well as some drawbacks. Digital banking allows you to use the internet to access banking services, transfer funds domestically and internationally, pay bills, and invest in mutual funds. However, when becoming a user of digital banking, you may face the risk of cybercrime.
Digital banking is a fantastic invention, considered the game changer of the banking industry. Digital banking has changed the way we carry out bank transactions, because we can now access almost all types of banking services via a mobile device with Internet access. In this article, VNEXT Global will suggest some pros and cons of digital banking in this digital world.
Digital Banking Advantages
Here are some of the most remarkable advantages of digital banking:
1. Transferring Money
You can transfer money from one account to another using internet banking. You can initiate both domestic and international interbank fund transfers. Using money transfer channels such as NEFT (National Electronic Funds Transfer), RTGS (Real-time gross settlement), and IMPS (Immediate Payment Service), you can send funds to beneficiaries within a short time, like an hour.
Another advantage of internet banking is the ability to open fixed and recurring deposit accounts online. You have the option of selecting your preferred deposit type (cumulative or non-cumulative), deposit amount, and investment term
3. Bill Payment and Recharging
You can pay utility bills such as electricity, telephone, and gas from the comfort of your own home and set up auto-debit options to never miss a payment. You can also use your digital banking account to easily recharge your mobile and DTH connections.
4. Account Tracking
You can keep track of your account and check account balances at all times. Under the “view account statement” section of the internet banking platform, you can get mini statements or download account statements from years ago.
5. Placing Bank Product Orders
You can also use internet banking to order bank products such as cheque books and bank cards. You can apply for primary and secondary debit cards, as well as credit cards and priority passes for international airport lounge access (if applicable).
6. Extra Services
You can take advantage of a wide range of add-on services, such as buying and selling mutual funds, purchasing insurance policies, and applying for various types of loans. You can also set up auto-payments for all recurring expenses through your digital banking account.
Digital Banking Disadvantages
Digital banking, like everything else in life, has some disadvantages. Here are significant limitations of digital banking.
1. No option for cashless deposit
No provision is made for cash deposits. To deposit money, you must go to your nearest bank branch or cash deposit machine.
2. Must-have Internet access
In the absence of a stable internet connection, your access to digital banking services may be impeded. It can also be impacted when bank servers are unavailable.
3. Internet Scams
You may become a victim of internet fraud if you do not follow the security measures of banks, such as not using strong passwords, sharing passwords, or not logging out of your internet banking account.
The above comparison of the pros and cons of internet banking shows that the benefits outweigh the drawbacks. Remember to always follow the necessary security guidelines to keep your digital banking account safe. This will allow you to have a satisfaction with digital banking experience.
If you are looking for a trusted IT partner helping you develop a digital banking system, VNEXT Global is the ideal choice. With 14+ years of experience, we surely can help you to optimize your business digitalization within a small budget and short time. Currently, we have 400+ IT consultants and developers in Mobile App, Web App, System Development, Blockchain Development and Testing Services. We have provided solutions to 600+ projects in several industries for clients worldwide. We are willing to become a companion on your way to success. Please tell us when is convenient for you to have an online meeting to discuss this further. Have a nice day!