How COVID-19 reshaped the banking landscape? Five benefits of digital banking in 2021 and beyond

COVID-19 changed everything around us. Undoubtedly 2020 has been a challenging year, especially for the banking industry that faced some unexpected changes. The lockdown forced banks to limit their branch access and working hours, leading to a massive customer base shift to companies offering easy-to-use online banking services.  

Before this pandemic, banks and other financial institutions were already investing in better infrastructure, analytics, and data science and improving communication. But, this pandemic forced banks to accelerate their efforts to become digital-ready and deliver banking ease to customers.  

COVID-19 restrictions made digital banking a necessity for banks to stay relevant and acted as a catalyst in transforming how banks interact with customers and deliver services. In this period, customer interactions shifted from traditional bank visits to digital engagement and banks started providing online KYC and online loan processing options.  

Here are the top five benefits of digital banking that can help banks and customers win in the post COVID data-driven digital economy.  

Accessibility

Digital banking helps banks make their offerings easily accessible to customers. Customers can avoid those long queues and save a lot of time consumed in visiting the bank. Digital banking makes everything ranging from making a transaction to paying bills convenient and easily accessible. Also, online banking makes it easier for customers to find detailed information on any banking product.  

The use of digital banking will rapidly increase between 2020 and 2024, and the number of users actively using online banking services is expected to reach 2.5 billion by 2024. 

– Statista 

Availability

Another key benefit of going digital is the all-time availability. Every bank has fixed working hours, and to avail banking facilities, customers must abide by the timings. But when it comes to digital banking, one can use it anytime they want, it’s always on. All banking facilities like money transfer, paying bills, and checking account statements are available 24*7 for customers, which is encouraging banks to shift from the traditional banking approach to digital banking. 

Security

When it comes to handling money, security is the first and foremost concern of every user. Digital banking offers utmost security to customers as every transaction they make is highly secured via complex encryption methods with electronic IDs, restricting hackers. Most mobile banking apps are now enabled with two-factor authentication and biometric lock, enhancing the overall security. 

Rewards

One of the most exciting benefits of going digital is the rewards. Banking is a competitive business, and to keep customers attracted, banks try to woo them by providing exciting cashback and rewards. Banks roll out many exciting offers on making online transactions that allow customers to either earn extra money or some gift vouchers.  

Personalized Experience

All digital banking platforms are designed and developed quite thoughtfully, keeping in mind all the customers’ needs. Mobile apps and websites are highly intuitive and user-friendly and aim to offer a personalized banking experience by customizing the menu or even offering a virtual assistant. 

The benefits of digital banking are not just confined to the above points and offer many benefits beyond banking. From tracking all their financial activities to sticking to a special budget, digital banking platforms give customers better control over their finances. Arttha fintech platform is the best way to meet your customers’ growing banking needs amidst COVID and beyond. Its Digital Bank in a Box Solution is designed to power banks with capabilities required to meet the evolving customer needs of this digital era. If you are also looking to make your banking services seamless and willing to offer an unmatched customer experience, Arttha is the perfect choice for you. 

To explore more opportunities in the digital banking space, get in touch with our team.