Going digital has been the buzzword for the 21st century banking system, with financial institutions increasingly muscling up their online presence.
By going digital, financial institutions are saving the money needed for building new branches, apart from automating a significant share of their daily mundane work.
For customers, they can perform basic banking activities like account balance checking from their homes, with just a few clicks on their smartphones. 21st century digital-only banks are giving their customers more attractive fee schedules and interest rates.
As per Bankrate’s 2023 emergency savings report, 57% of Americans were uncomfortable with their level of savings, something which online banking can address with their tailored solutions.
Today, we will explain in detail why going digital might be the best banking decision for you.
24×7 Banking Access
Physical branches of a bank don’t operate on a 24×7 basis, but mobile apps do. And this comes in handy during emergencies. What if you face a medical emergency or need to transfer funds to your friend urgently? Internet banking will help you to sail through these emergencies.
You will be able to transfer money anytime and from anywhere with just a few clicks on your smartphone.
By using mobile check deposit, you can deposit a check from your house even during the night. While the legacy banks were known for their rigid duty times, digitization has broken them down completely.
No Need For Branch Visits
Checking savings bank account balance, transferring funds to another user, requesting a new chequebook, setting up standard instructions, initiating money transfers, opening a Fixed Deposit account, and paying utility bills, all these functions were used to perform through branch visits a few years back. However, the arrival of mobile banking has changed the scenario.
You can pull off the above functions from your couch through a single interface of your bank’s app, while saving the transportation cost.
Makes Saving Money An Easy Affair
United States-based Ally Bank app offers features like automatic transfers to savings accounts, along with round-ups that move rounded-up change into the customers’ savings.
The US Bank app is known for alerting customers when its algorithms spot money-saving opportunities. California-based all-digital Varo Bank is offering a ‘Save Your Pay’ feature that automatically stashes away a pre-set percentage of the customer’s paycheck each time it deposits.
Having banking apps with spending alerts has emerged as the perfect money optimization solution for 21st century customers, something which all-digital neo/challenger banks are making full use of. This helps the customers to keep track of the latters’ account expenses, apart from organizing them into spending categories like utilities, dining and transportation.
Some apps are even offering built-in budget creation solutions. Then there are digital banking interfaces, where you can set your financial goals and save money as per that. Your banking app will even allow you to download account statements to your smartphone.
Giving Tailored Financial Products
Neobanks and challenger banks are known for offering their customers tailored products through digital routes.
You can digitally draw up your financial goals and start categorizing your money-saving activity as per your needs. Ten years back, the same process would have involved immense paperwork.
The 21st century banking apps make your life easier by deploying AI and Machine Learning, which, through the analysis of large volumes of data in a quick span, predict your banking behaviour, and decode the latest market trends and sentiments, before suggesting your investment options.
AI solutions are also suggesting 21st century customers the best time to invest in stocks, apart from warning them about market risks.
In short, digital banking solutions are also helping customers to make informed decisions on financial instruments like mutual funds, stocks and bonds.
A Strong Data Security
Compared to the physical branches, digital banking apps invest heavily in guarding their customers’ crucial data.
Yes, you may run the risk of losing access to your banking app, if you don’t remember your username and password, but these are the safety features, along with multi-factor authentication, which keep your data safe.
Some bank apps have taken the game to the next level by asking its customers to log through face/fingerprint scanning, before they access their accounts.
Apps of Wells Fargo, Ally Bank, Chase and Bank of America let their users access their digital solutions to turn their debit/credit card off if it gets misplaced. Earlier, this function required the customers to call a toll-free helpline number, or in the worst case, to make a panic visit to the branches.