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:
- 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.
- 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.
- 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.
- 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.
- 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.
Paperless banking makes the banking transactions easier for people by the use of electronic medium. The benefits of a paperless digital banking outweigh the disadvantages and opens-up a new banking reality centered on all customers. Paperless makes banking more functional, automated, and open. Although, more technology brings growing concerns of security & authentication to many, but technological innovations will be the only one that will help in minimizing these risks.