The digitization of the banking & financial services industry has transformed the way individuals do banking. Technological advancements in the banking, financial services and insurance (BFSI) sector, such as digital currencies, contactless payment, and mobile banking, are making physical paper superfluous. According to Research Dive analysts, cost efficiency and ease of use in financial transactions is projected to propel the growth of digital banking market in the coming years. By 2026, the global digital banking market is expected to reach up to US$1,702.4 billion increasing from US$803.8 billion in 2018.
The Benefits of Paperless Digital
Banking
The
COVID-19 pandemic has primarily changed the way the BFSI sector needs to serve
its customers. The pandemic has created a growing dependency on technology for
the sector and thus, various banks are experimenting with ways to bring the
functionality & benefits of their services to their customers’ homes. Going
paperless is one of the ways that is convenient for the customers and more beneficial
& cost-effective for the banks. With paperless digital baking, customers
save time, banks save money, and it is also beneficial for environment as less
paper is used. Listed below are some of the benefits associated with paperless
digital banking:
1.
Elimination of Costs,
Paperwork, and Physical Statements
An
important benefit of the paperless digital banking is the elimination of physical
currency and paperwork as the banking process becomes digital. The virtual or
digital banking process could also eliminate the cost of physical offices and
allow banking services to expand their financial access for all. In addition,
digital banking allows individuals to receive bank account statements digitally
via mail or messages. This saves paper and also time as people can get their
statements anywhere at any time.
2.
Improved Account Management
Paperless billing minimizes the risk of unauthorized and fraudulent
transactions. A person can electronically access his/her information and will
be also aware when something does not look correct. Paperless digital banking
improves electronic management of account and allows to spot any fraudulent
activities instantly.
3.
Find Transactions Quickly
With
paperless banking, the customer can quickly find recent transactions by going
through past e-Statements and referring to older transactions. A customer can monitor
the status of checks, such as a check sent months ago and is still not cleared,
etc. Going paperless allow for quick insight into one’s finances and allows to
plan for payments and expenses.
4.
Aggregate Customer Data
Another
fascinating benefit of the paperless banking is the new ability to aggregate
all customer data through data analysis. The data analysis tool uses machine learning (ML) and artificial
intelligence (AI) to organize, categorize, and analyze large volumes of data.
This tool also enables the discovery of market trends, key customer
preferences, and other strategic insights.
5.
Customer Control
Once
banking services are digitized, customers enjoy having access to self-service
features, such as mobile banking and e-Statements. These benefits allow customer
to access their account details where & when it’s convenient for them. They
can access complete and accurate information on their accounts at any time of
the day. Paperless digital banking helps in keeping the track of the finances
that much easier for them.
Features That Make Paperless Banking
Easier
·
Online Banking – Bill payments through
plastic money.
·
Mobile Banking – Availability of banking
apps and e-passbook which assists in handling bank account with smartphones.
·
Internet Banking – Not necessary to go to
bank for depositing or transferring money. One can do it easily with the
availability of internet while being anywhere.
Looking Ahead
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