Thanks to digital banking, a freelancer in Dublin can now receive payments instantly from clients in New York. Travellers can easily swap between currencies, while relatives can send funds to families abroad without much hassle.
But the rise of digital banking hasn’t been accidental. There are specific factors that have influenced the popularity of digital financial platforms. That’s what we’ll look at in this article.
Join us as we study the evolution of the financial landscape and the benefits of digital banking. We’ll also take a glimpse of what the future might look like in the fintech space. Let’s get started!
What is Digital Banking?
Digital banking simply means conducting banking activities through digital channels. Instead of going to the traditional brick-and-mortar banks, you can conveniently access banking services using a desktop or mobile device.
You can easily pay bills, check your balance, or transfer funds via your smartphone and other compatible devices. Nowadays, you can simply download and install a banking app on your iOS or Android device and access all the traditional banking services. A good example is Revolut, the leading all-in-one finance app in the UK and Ireland.
The Rise of Digital Banking
The evolution from traditional banking to digital banking has been made possible by several factors. The key factors driving the rise of digital banking include:
- Lowering operational costs: Traditional banks seeking ways to lower operating costs saw digital banking as a perfect, cost-effective way of banking.
- Consumer preferences: Gen Zs and millennials prefer digital ways of doing things. To cater to their needs, many financial institutions had to switch to or at least offer digital banking.
- Technological advancements: Fintech innovations, artificial intelligence (AI), and other tech advancements have made neobanking possible.
- The COVID-19 pandemic: When the Coronavirus forced the world into a lockdown, it led to the mass adoption of remote services, including banking. This further accelerated the popularity of digital banking as people were unable to access brick-and-mortar banks.
Benefits of Digital Banking to Users
The adoption of digital banking has brought numerous advantages to everyday users. Here are some of the main benefits of digital banking.
1. Manage Cross-Border Payments
Whether you’re a freelancer or a business operating internationally, digital banking can help you manage cross-border payments more efficiently. Neobanks utilise technologies such as application programming interfaces (APIs), blockchain, and open banking to make international payments quicker and more secure.
You can send and receive funds internationally within minutes or hours while enjoying lower fees than traditional banks. Innovative financial apps also offer enhanced security, reducing fraud risks when transacting across borders.
2. Easily Handle Multiple Currencies
Thanks to digital financial apps, travellers can enjoy a newfound sense of financial ease. You can book flights, withdraw cash when touring the world, and pay for experiences in local currencies. Using apps like Revolut, travellers can easily convert funds into different currencies without huge fees or much hassle.
This seamless financial mobility promotes financial freedom that traditional banking can’t provide. Now you can vacation in Indonesia, receive funds from Ireland, and spend in local currencies.
3. Lower Fees
Since digital banks usually operate online and have automated systems, they have minimal operational expenses. Therefore, they can offer some free services or charge lower fees than traditional financial providers.
Whether you’re using digital banking for personal purposes or growing your business internationally, you’ll enjoy reduced transaction fees. Some digital banks may have ATM fee reimbursements or have zero monthly maintenance fees, leading to significant savings.
4. Convenient Access to Banking Services
Among the major benefits of digital banks is the financial convenience they offer. You can book flights, shop online, split bills with your friends, or apply for mobile loans instantly. You can even find Irish casinos accepting Revolut on Casinos.com and fund your gaming account.
You can also manage your accounts remotely, receive instant notifications, and reach customer support without visiting a physical location.
5. Personalised and Innovative Banking Experience
Digital banks utilise technologies like AI and machine learning to offer users a banking experience tailored to their needs. These include interactive tools, customisation options, and relevant resources to help you achieve financial independence.
What’s more, financial apps also offer innovative features like personal financial management tools and virtual card numbers for secure online shopping. You’ll also enjoy instant or quick transactions and advanced security features, including biometric login.
Looking Into the Future of Digital Banking
The future of digital banking will be more than digitisation. It will also involve enhancing the entire customer experience through technology. We may witness more institutions adopting AI to offer more personalised banking services and streamline their operations.
Banks will also prioritise top-notch security features to remain compliant with government regulations and win customers’ trust. Blockchain technology usage may continue rising as it provides a way to transact instantly, securely, and transparently.
We might also see more banks investing in quantum computing as a way to improve their financial services. This technology has the potential to improve risk management, security, and fraud detection.
Other future trends will include open banking, embedded finance, real-time payment technology, and banking-as-a-service (Baas). These trends will aim to reduce processing time and integrate financial services into daily-use apps and platforms.
Our Final Words
Truth be told, digital banking has changed our lifestyle, empowering us to achieve global financial freedom. Whether you’re an online gamer, freelancer, or traveller, you can use online banking to enjoy unparalleled financial convenience wherever you go.
As we step into the future, be prepared to embrace new technologies while enjoying more advanced digital banking features.
