Banking has evolved at a rapid pace over the past few years. Due to technological advancements within the financial industry, demand for digital banking services has increased drastically. Many consumers have never set foot into a brick-and-mortar bank and continue to use digital banking. This article will take a deeper look into what digital banking is and how it can affect businesses.
What is digital banking?
Digital banking means accessing banking features and services via a bank’s website or mobile app. Whether it’s from a computer or phone, digital banking allows users to do many of the same features you would in an actual bank, such as checking your balance, applying for a loan or credit card, and depositing checks. It is estimated that about 80% of US banks currently offer customers the ability to bank online. Digital banking has given people access to bank wherever they may be.
Digital banking is offered by most brick-and-mortar banks, credit unions, and online banks and there are a number of benefits for both consumers and business owners. Digital banking gives users access to manage their finances outside of the usual bank hours. Some online banks have lower fees than brick-and-mortar banks, which gives consumers an easy way to compare rates and fees to find the best bank for their needs. Another benefit of online banking it’s ability to reach unbanked and underbanked communities that do not have access to physical banks but rely heavily on mobile phones.
What does this mean for my business?
Anything that proposes to make life easier for business owners in a difficult economy is worth consideration. Digital banking has exploded and more and more businesses are recognizing its advantages. While some are concerned about the security of online banking, it can be much safer compared to traditional banks because personal information is encrypted through secure internet networks rather than on paper. According to Statista, 2.5 billion individuals worldwide will be actively using online banking services by 2024.
While many business owners are visiting traditional banks frequently which can be very time-consuming, digital banking has changed that. Now business owners can conduct the same transactions from the convenience of their office or home – or while traveling. Having access to a bank 24 hours a day and on holidays allows businesses to monitor their accounts frequently so they can spot any unusual activity quickly.
Transferring money is one of the unique business advantages of online banking. Businesses can process ACH payments and wire transfers quickly and efficiently from their phone or computer. Some banks also allow business owners to grant customized access for specific employees, initiate transfers, and setup recurring transfers directly from the banks website or mobile app. Online banking also allows businesses to monitor their accounts frequently so they can spot unusual activity quickly. The future of banking is digital and will be key to transforming businesses for today’s digital-first world.