What Are The Advantages of Digital Banking for Customers and Institutions?

August 9, 2021

There’s no better time to adopt digital banking services and enhance your customer experience as well as your competitiveness.

Digital banking, the automation of traditional banking services using innovative software solutions, is rapidly becoming mainstream. As more users and organisations adopt digital banking platforms and services, more and more banking processes are becoming digital. The need for customers to visit branches in-person is dwindling and being replaced by the requirement for financial institutions and merchants to have seamless online banking and payment options.

The benefits of digital banking

Digital banking is an opportunity for traditional banks and other financial institutions to embrace the advantages it has to offer and provide their customers with more options to manage their finances, carry out transactions, and plan for the long term. Digital banking has been gradually developing for several years mainly due to the undeniable benefits it provides.

The main features and benefits of digital banking include:

Smartphone apps for seamless money management. Mobile apps, when carefully designed, provide customers with all the banking services they need when they need them most. Users can move funds and make payments on the go or from the comfort of their homes. Apps can replicate a bank’s in-person banking services, or they can go a step further and offer users innovative ways to manage their funds, track their spending, and offer wholly new services such as investing in digital assets.

Better payment options. Digital banking platforms give users a wide variety of options for payments including virtual IBANs, remittances, payments to mobile phone numbers, and FX. Users can carry out these transactions via smartphone apps to make their banking experiences as seamless as possible. Users can also set up alerts to notify them when payments leave their accounts.

Online and POS purchases. Digital banking platforms effectively reduce the costs for merchants to set up payment gateways thanks to their innovative design and architecture. From the user side, platforms also provide several payment options including physical and virtual debit cards that can be pre-funded with a user’s chosen currency or digital asset.

Increased security and reduced risk of fraud. By reducing the burden of physical cash transactions for businesses, digital banking platforms increase the security and traceability of online transactions. Added security features like single-use virtual debit cards and IBANs linked to specific merchants also help to get payments pre-approved and aid cash reconciliation. Furthermore, by developing a cashless society digital banking platforms reduce the circulation of physical counterfeit money and fraud.

Stay ahead of the curve with Baanx

It’s essential that ambitious organisations carefully consider the financial toolkit and infrastructure they require to continue serving their staff and reaching customers including the unbanked. Our digital banking platform can be incorporated into your existing financial infrastructure so you have the back-office architecture to deliver services including virtual and physical debit cards, virtual IBANS, forex, and more.

Contact us to learn more about our innovative open API platform that’s bridging the gap between traditional fiat currencies and digital assets and how we can help you launch a banking and payments service in a matter of weeks.