Banks in the past won’t be able to deal with the kind of financial crises and quarantine measures that everyone is facing today. But now, the digitization of banking processes is possible. Due to the pandemic causing a global recession and forcing everyone to stay at home, banks have started to adapt to this new technology and speed up their processes. Thanks to technology, most people are still able to do banking without leaving their homes.
That said, here are some of the ways banking has evolved and adapted to the digital age:
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1. Use of online mobile banking applications
In the digital age, banks are using online applications instead of traditional paper documents and financial transactions. Not only do banks have websites these days, but they also have mobile apps, as consumers are seen to be using their smartphones more than their PCs or laptops. This means that even if you don’t have a bank account, you can still get a loan or get a credit card from your bank through online means. In addition, you can also perform other transactions with the use of your mobile banking app.
Almost all banks have internet connection and mobile apps these days. You can easily access your bank accounts, check your balance, send money to your friends, and even transfer money between different account holders. When people talk about digital banks, they even mention some banks that allow users to cash-in checks simply by taking a picture of it and uploading it on the app. The funds would then be directly transferred to their accounts.
This is easier and faster than traditional methods of banking, as it’s less time-consuming. However, it’s important to note that not every bank has made this kind of feature available to all its users. To make sure that you’re dealing with a reliable bank, it’s important that you do some research before making a decision.
2. Online payments and settlements are easier
As one of its digital banking features, banks are also more flexible when it comes to online payments. For instance, when you pay your bill online through PayPal, there’s no need for your bank to print out your payment card. However, in order to receive money from your account, you will have to provide the bank with proof of identification and your bank account number.
Although banks are starting to accept e-payments, they don’t accept online accounts in place of checking accounts. You will still need to provide a physical proof of identity, such as a driver’s license, social security card, and some other personal documents. If you have an online bank account, this information will already be available to the bank, but you will still need to provide your bank account number and personal identification information in order to transfer money.
3. Faster online bank loan applications
Online bank loans are loans that are processed online. In today’s fast paced world, many people have the time to do things that they couldn’t do a few years ago. You may also be surprised to learn that you can save so much time and effort by applying for loans online.
When you apply for an online bank loan, you won’t have to leave your house or office. In fact, the process takes place on your computer, which means that you will be able to complete it at any time. All that is required is an email address, a social security number, and a few personal details. Once you submit your application, you will have access to your loan for the next few months. As soon as you are approved you will receive a check directly deposited into your checking account. You will also be notified when your new loan begins, and you will be notified about any additional payments you must make.
This is one of the features and processes that banks have developed as they adapt to the digital age. It’s convenient for both the consumer and the bank since all the documents are uploaded online. You can try this out as well and see how smooth the process is.
4. Cyber-security and protection from cyber-attacks
Along with the digitization of banking comes threats that arise with it as well. This means banks have developed new methods to manage risk and cyber-attacks. When it comes to banking, security is one of the most important things that banks should maintain, as dealing with large sums of money online can open up the bank to a lot of vulnerabilities.
One of the many risk mitigation and privacy protection measures that banks have set up are two-step authentications and one-time passwords. With two-step authentication, the user must use two devices to authenticate the log in. This will help make sure that it’s really the user who’s trying to log into their account. In addition, one-time passwords are sent to the phone of the user before the user can log into their account. Both of these add a layer of security when the user logs in. Additionally, banks also require more complex passwords from users, containing words with upper-case and lower-case letters, punctuations, and special characters.
Moving money is not an easy feat and should not be taken lightly. Because of this, banks have also invested a huge sum into security features and protection from any cyber-attacks. Banks now have dedicated teams watching out for cyber-attacks, phishing attempts, potential hacks, and any anomaly in their system to prevent the bank’s security from being compromised.
With so many new and exciting features available, it is easy to see how banking has adapted in the digital age. Before you make a financial decision, you need to be aware of your bank’s policies and the procedures you have to follow. In the future, traditional banks may not be available anymore or will just serve as fronts. However, expect most of your bank transactions to be done online and maybe one day we may not even need physical banks anymore. How exciting is that, right?