Digital Banking

India's banking sector has undergone many transformations since its origination years ago. However, nothing quite matches the rate of evolution witnessed in the last couple of decades. With digitalisation in financial services, the banking sector in India is making rapid strides, with banks offering customers convenience, safety, and ease of use.

But what is Digital Banking, and is Digital Banking meaning the same as online banking? Let's find out.

While Online Banking was the start, Digital Banking is a much broader term, that means adopting technology to transform how banks deliver their services and customers receive them. From how the data is stored and processed to how the services are delivered - all come under Digital Banking.

Read More: About Digital Banking

In India, the digitalisation of financial services significantly accelerated since the demonetisation in 2016, and gradually picked up speed post-pandemic. As a result, many people switched over to online transactions to reduce their dependency on paper money.

However, the RBI has not yet approved banks to go fully digital. Therefore, most Digital Banks in India operate with either brick-and-mortar branches or traditional banks as partners.

Several reputed banks are rapidly integrating various cutting-edge technologies in banking, such as cloud computing, artificial intelligence, and machine learning to increase the reliance on this type of banking.

Besides, the exponential growth of smartphones, and steadily increasing internet penetration, means that the future of digital banking in India looks brighter than ever.   

1. Technology Adoption

Technology adoption is likely to be faster in the coming years. The young generation prefers to do most of their tasks online – be it shopping or education. So, why should banking be traditional? Young people in India are likely to have a Digital Savings Bank Account to manage personal finance, shopping, etc.

2. Fee:

One of the key differences between traditional and Digital Banking is the fee. If you are visiting a bank for the transfer of funds, you are required to pay a transfer fee. This is not the case with Digital Banks, and you don't need to pay for everyday banking operations, although some transactions may carry a fee.

3. More Profit at Less Operational Costs

Unlike traditional banking, Digital Banking doesn't have to spend much money in offline branch offices. Today, banks can deliver equivalent services throughout the country without opening many branches. Consequently, they save on rent, electricity bills, etc., to sustain their operations.

4. Convenience

One of the greatest drivers of adopting Digital Banking in India is the convenience it offers customers. You no longer have to visit the bank physically to avail any service. Today, you can access any banking service using Mobile Banking App/NetBanking.

For example, AU Small Finance Bank allows its customers to access a wide range of banking solutions through its AU 0101 App. The app can also be used by new customers to apply for a Savings Account or to make online payments. Similarly, AU 0101 NetBanking can help you open a new Account and perform various transactions from your computer.

The bank also offers AU Video Banking facility through which you can not only open a new Savings Account but also talk to bank representatives and perform banking activities through a secured and encrypted video call.

5. Enhanced Security

Banks are constantly upgrading their cybersecurity features to make Digital Banking safe. In India, banks use advanced encryption technology for transmitting information over the internet. Besides, your online transactions are validated using two-way authentication to minimise the risk of fraud.

For instance, AU Small Finance Bank relies on AI-based face-recognition technology, personalized security questions and OTP-based authentication whenever a customer uses our AU Video Banking facility.

6. 24×7 Availability

The best part about Digital Banking operations and services is that they are largely automated. You can access these services on your smartphone, tablet or computer anytime and from anywhere, without actually visiting the bank.

Read More: How is digital banking important?

• Digital Banking is the next revolution in India's banking sector.
• As the Indian Government pushes digitalisation in all industries, Digital Banking will likely find many users in the coming years.

AU Small Finance Bank is taking advantage of the fast-emerging digital ecosystem and the bank offers various Digital Banking solutions like AU 0101 App, AU 0101 Net Banking, AU Video Banking and WhatsApp Banking with an aim to make banking accessible to customers anytime, anywhere.