We have all come across numerous digital banking solutions that can help financial organizations to improve their customer onboarding experiences. Digital Banking in UAE is growing faster than ever before; But, What is digital banking? Continue reading to find out…
An introduction to digital banking
In the old days, banking used to be a time-consuming business. If you wanted cash, for instance, you had to go to the bank branch, hand over a cheque to a bank employee, get a token, and wait until the cashier called your number. In the first week for a month, when there was a scramble for cash among customers, you had to wait a long time indeed. All that, thankfully, is a thing of the past. Digital banking has transformed the way things are done. Now all you have to do to get cash is to get to the nearest ATM, use your card and get cash in under a minute! Moreover, going digital allows you the perfect opportunity to enjoy a paperless banking experience, where you no longer need to keep track of your transactions or banking history through physical documents. Digital Banking has completely changed the way we bank in today’s times. With Digital Banking, you can transact with higher speed, ease, and convenience.
What is digital banking?
Digital banking is the digitization (or turning online) of all the traditional banking activities and programs services that were historically only available to customers when physically inside of a bank branch. This includes activities like…
- Money Deposits, Withdrawals, and Transfers
- Checking/Saving Account Management
- Apply for a Credit Card
- Apply for a Personal Loan
- Loan Management
- Bill Pay
- Account Services
Digital banking sometimes referred to as e-banking, has gradually emerged over the last few decades. Importantly, digital banking portals allow banks to provide customers with access to traditional banking services via their PC or smart device. These services save customers and the bank time and money. Consequently, they are more popular than ever.
What is the difference between online banking and digital banking?
For the most part, these two words are synonyms. But, we define online banking a bit more narrowly than digital banking: online banking primarily focuses on remote deposits, money transfers, bill pay and basic online management of accounts. Other synonyms for online banking include internet banking, virtual banking and e-banking. So, online banking focuses on digitizing the “core” aspects of banking, but digital banking encompasses digitizing every program and activity undertaken by financial institutions and their customers.
What are the advantages of digital banking?
Given all of the advantages digital banking brings to the sector, it’s easy to see why today, every bank offers some form of digital banking to its clients. Both clients and banks have much to gain from this hi-tech integration. Some of the advantages of digital banking are as follows:
- Open bank account online
- Apply for loans, credit cards online
- Check account summary
- Get e-statements
- Avail banking services 24/7
- Transfer funds to other accounts at ease
- Move funds from one account to another easily
- Can maintain different accounts easily
- Get debit cards/ credit cards/ chequebook delivered at your preferred location
- Avail banking services even during holidays
- Need not visit the bank and wait in queues
- Can get in touch with banking officials easily on any related queries
- No charges are levied to avail Digital Banking
Digital banking Tips for Users
Make sure that you keep the following tips in mind whenever you use the facility of digital banking.
- Do not to write down your passwords or log in credentials anywhere
- Do not share your credentials with anyone including banking officials
- Do not tell your banking card PIN to anyone
- If your card is lost, report it on the bank website or app immediately and get it blocked
Read More:- Keep your Bank Account Safe
Digital banking in UAE
Banks in the United Arab Emirates (UAE) in particular have taken the lead in adopting digital solutions. In UAE, a number of banks have undertaken numerous digital banking initiatives, ranging from launching separate digital-only banking platforms to strengthening existing mobile banking services. Over the past years, UAE has witnessed a significant digital transformation, supported by a government focusing on developing all required digital infrastructure through substantial spending and by attracting private investments. The country is rapidly emerging as a startup hub for the regional financial sector with about 30% of the region’s fintech firms based in the UAE.
Emirates NBD (ENBD) launched Liv., a millennials digital banking proposition which became a Big success very soon.
Commercial Bank of Dubai launched CBD NOW, also targeting the millennial and digitally connected customers with a mobile proposition,
and Mashreq Bank launched Mashreq Neo, its full-service digital bank.
Emirates NBD & Mashreq Bank are leading the charge in the Digital Business Banking segment too, with Mashreq Neo Biz & E20 Digital Business Bank are the only two Digital business banking app in UAE at the moment.
Digital Banking continues to see growth within the financial sector. Importantly, a multitude of major banking institutions in UAE diverted funds from the creation of new branches into e-banking platform upgrades recently. You can expect this trend to continue as the digitization of the market expands. For now, a digital bank could be the perfect solution to all of your banking needs during the coronavirus pandemic.