Digital banking has increased a lot in the past couple of years. The new generation uses digital banking the most as compared to traditional banking.
Digital banking is when you use digital technology to make payments from one person to another. When you make the payment from your mobile phone or your computer, the process is called digital banking. Unlike traditional banking, digital banking removes the efforts to visit the physical branch.
Now, this goes without saying but traditional banking is when you use the physical brand to do the banking operations. The rise of digital banking is enormous. Now, not just the transfer but almost all the banking operations can be done online.
Digital Banking Overview
Before we get into the comparison, it’s important to know what are the things that are covered in digital banking.
Today’s digital banking covers almost all the things that you can probably imagine. Here are some of the major operations covered here.
- Payment transfer from one bank account to another
- Merchant payments usually used for shopping
- Personal finance
- Investments and loans
- Account creation
- Wealth management
- Digital Services such as credit cards, payment gateway, etc
These are some of the places where the customer uses Fintech Services. Fintech services are any services where technology is used to complete financial operations. This could be as simple as checking your balance online or transfer payment. All these are included in Fintech services.
Traditional Vs. Digital Banking
Now, let’s see the main topic. The popularity of traditional banking is decreasing day by day. Nobody likes to wait in the crew for a long time till they get a chance for the same. Even if you want to get the passbook printed, you need to wait.
On the other hand, you could easily get all the details of your account including the last transactions in just a few clicks. This is why people prefer digital banking.
Time is also an important factor here. Traditional banking becomes useless when you want to transfer the money at 2 AM whereas you can easily transfer the money in few seconds if you are using a digital means of transfer.
People believe in data and facts rather than a person. With the use of Artificial Intelligence, it’s easier to make any investments and choose which credit card is best for them. This is why people will choose digital banking over traditional one. Not to mention, the lightning-fast transfer of money from one account to another is also the reason why people use this.
To summarize, digital banking will soon remove the complete need for traditional banking. In many countries and places, there are already digital-only banks running. These are the banks that are only available digitally with no physical branch. People are showing a positive response towards it as they love the service and the speed of the banking services. This clearly shows that the rise of digital banking will make traditional banking as good as useless.