As UPI transactions have surpassed Rs 4 lakh crore in value and Aadhar authentications have passed the 55-lakh crore mark, digital banking has been able to mitigate the financial challenges the country is facing. As a result, India might be on the verge of operationalizing its Open Banking framework with a carefully calibrated approach. Through Digital Banking, the country can cement its position as a global leader in Fintech while addressing various public challenges. Such progress has demonstrated the immense potential of a UPI payment app.
How digital banking can benefit customers, as well as banks, are as follows:
Expansion- The main advantage for both the customers and the financial institutions is that both parties get to be on the same page. By meeting users’ expectations and facilitating comfort, banks can attract more traffic and expedite their growth.
Quicker banking service- With the help of technologies, banks can become more agile in availing their services. Banks can get expanded customer solace to the customers, resulting in a seamless user experience. You can access the option of EMI by linking credit cards directly to mobile devices and making use of an online wallet. Customers will consequently purchase more credit cards.
Replacement of in-person bank visits – One can avail various web-based features such as bill payments, UPI transfer, tax payments, cash transfers to vendors and suppliers, opening new accounts, loan applications, cheque deposits.
Accessibility 24/7- Banks can allow accessibility of their financial products and services around the clock. It can contribute significantly to their revenue.
Less maintenance- Since banks are rapidly moving toward the digital alternative, they can save money on maintenance and employee management. Consequently, banks can reduce operational costs and paper and printing expenses. Meanwhile, they can analyze the behaviour of their customers more efficiently, helping them improve their products and services further.
High Security- To keep up with the forward-facing world, the fintech industry has developed an array of new security instruments. Over time, the online space has become more and more secure to provide instant P2P payments, online banking, fund transfer, and other financial solutions to its clients.
More control- The financial institutions have become more accessible and intuitive where you don’t just perform financial transactions and manage your income, expenses, and savings. It provides further control in the customers’ hands as they can keep track of their finances better. In addition, it creates an ecosystem where users can monitor how and where they spend their money.
Enhance customer engagement- The digital tools allow the customers to engage more actively with their respective banks. Thus, banks can utilise this as an opportunity to collaborate with banks and leverage the attention. As a result, the payments app can help banks expand their reach and formulate better growth strategies.
In conclusion, digital banking is advantageous for not only the customers but also banks. Furthermore, these online methods have accelerated the growth of the banking system, thus making it more convenient and comfortable for both parties.