Why Banking Has Gone Digital [Slideshow]

The banking world is far different from what it was just a few decades ago. These days, you can quite literally do all of your banking on your smartphone or your computer. There are few other industries in today’s world that have seen quite the same level of digital transformation as banking has. Why this huge change? The slideshow below outlines just a few of the reasons for it.

mobile banking

Convenience for Customers

Today’s consumers want things done instantly, so the last thing they want to do is stand in line to deposit a check. With all of the technology included in today’s smartphones, customers can now take a photo of the check on their phone and deposit it instantly. They’re also able to check their account balances and credit card charges from anywhere, adding to the level of convenience provided by the mobile banking world.

security

Increased Security

Though the digital world does come with its own security issues, overall, it is far more secure than passing around physical documents—especially when those documents contain sensitive financial information. The ability to fill out loan applications and other financial documents online, in a secure banking or document sharing portal, helps to protect both customers and financial institutions from losing information or having it stolen. And with the enhanced security features provided by such applications, it’s extremely difficult for any hackers to compromise the data that’s shared.

speed

Improved Speed of Processing

Processing loan applications, applications for new accounts, and other such transactions still takes a bit of time, but it can be done much more quickly thanks to digital banking technology. Files can be shared faster, applications are filled out more accurately, and automated systems can even approve or deny applications in some cases. This cuts down on the workload for those in the banking industry and allows them to offer better service to more customers.

global

Global Access to Accounts

Though this is closely related to “Convenience for Customers,” it is still a feature worth mentioning on its own. In the past, when a customer would move to a new city, state, or even a new country, they would have to hunt for a branch of their respective bank. And if one was not available, they had to go through the hassle of setting up an account with a new institution and transferring all of their funds over. Now, with banking available online, customers can continue using their preferred bank even if a branch is not available in their location. This also benefits the institutions themselves, because they’re less likely to lose customers due to customer relocation.

credit

Staying Educated and Informed

With the ability to access their accounts from anywhere, customers are able to stay up-to-date on their financial situation. Many financial institutions also offer investment advice, credit reports, and other important information, all online or within their mobile apps. Having ready access to such information helps banks’ customers to stay informed and become more educated on their personal financial outlook.

bank

A Note on Physical Banking Locations

Despite the increasing popularity of online banking and mobile apps, brick-and-mortar banks still have a very important role to play. In fact, according to a study conducted by Market Force, 72% of banks’ customers had visited their physical bank within the last 90 days. Why is that the case, if digital banking has so completely transformed the industry? It’s simple: face-to-face interactions still build loyalty and trust, and so consumers often feel more comfortable getting financial advice from a person rather than an app. This creates a wonderful, balanced relationship between digital banking and physical banking that allows both customers and financial institutions to benefit.

By | 2017-06-05T17:00:10+00:00 March 29th, 2016|
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