Digital banking may be new to some, but it is absolutely essential to a modern business. This type of banking takes place online, and your money is moved digitally for fast transfers and convenient access. When linked to a wider network of banking systems, and connecting to various bank branches, this type of banking is known as cloud core banking.
This is a digitized form of banking service that extends to every kind of banking benefit you would normally receive in a physical bank setting.
What Are the Advantages of Digital Banking?
There are many benefits to using core banking services:
- Convenient Access – You can access your account using core banking software, even outside of regular banking hours. This gives your business greater financial flexibility and power.
- A Level Playing Field – Smaller banks can leverage their digital core banking software to reach more customers in more ways, even if they don’t have the physical space and advertising powers of their bigger competitors. This is great for the customer who wants to enjoy the personal service and lower fees of a small bank, but with all of the access and functionality of a larger interconnected network of banks.
- Reduced Costs – Online banking keeps costs low for the banks, and they can pass those savings on to their clients. With automated services there is less need for personnel, and more banking services can be provided outside regular business hours, allowing the bank to be more efficient and cut costs in lots of ways. For fintech businesses trying to stick to a tight budget, cost-effective online banking is incredibly helpful.
- Increased Functionality – Online banking services offered through a core banking platform give customers far more options, and the ability to access their accounts anywhere. They can open accounts in foreign countries and do business with their bank, even when travelling, or from the comfort of their homes.
- Personalized Service – When you access your bank account online, the bank is able to give you customized services and create offers personal to you. They can cater what they offer to your specific needs, creating automated analytical tools and reminders.
- True Account Security – You won’t have to worry about someone accessing your account without your permission when you use modern digital banking services. Many of them offer voiceprint or fingerprint scanning to keep your account safe. You can also check your account easily at any time to see if funds are moving without your permission. Encryption technology offers another level of security that gives you peace of mind about your transactions, even when you use your bank card and account to pay for goods online.