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(e.g. performing a financial transaction such as an account to accounttransfer,
paying a bill or applications like applying for a loan, new account, etc.)

 Electronic Bill Presentment and Payment (EBPP)

 Funds transfer between customers own checking and savings accounts, or

toanother customers account.

 Investment purchase or sale.

 Loan application and transactions such as repayments.

(e.g. online statements, Check links, Chat, Co-browsing etc.)

Financial Institution Administration- features allowing financial institutions

tomanage the online experience of their end users.ASP/ Hosting Administration –
features allowing the hosting company to administerthe solution across financial
 Convenience- Unlike your corner bank, online banking sites never close;
they’re available 24 hours a day, seven days a week, and they’re only a
mouse click away. With pressures on time and longer travelling periods,
more and more people find it tiresome waiting in queues. People want
flexibility, and Internet banking offers just that.
 Ubiquity- If you’re out of state or even out of the country when a money
problem arises, you can log on instantly to your online bank and take care
of business, 24\7.
 Transaction speed- Online bank sites generally execute and confirm
transactions at or quicker than ATM processing speeds.
 Efficiency-You can access and manage all of your bank accounts,
includingIRA’s, CDs, even securities, from one secure site.
 Effectiveness-Many online banking sites now offer sophisticated tools,
including account aggregation, stock quotes, rate alert and portfolio
managing program to help you manage all of your assets more effectively.
Most are also compatible with money managing programs such as quicken
and Microsoft money.
 Cheaper alternative - With increasing competition, it seems to be the cost
factor that is driving banks to offer the facility. The Internet is still a very
cheap alternative to opening a physical branch, and most of the push seems
to be coming from the supply side. The costs of a banking service through
the Internet form a fraction of costs through conventional methods.
 From snob value to necessity-A couple of years ago, there was a belief
even among bankers that customers opening new accounts wanted the online
banking facility, just to "feel good" and very few of them actually used the
services. Today, bankers believe that the trend from `nice to have' is
changing to `need to have'. The "snob value" of banking with an
organisation that couldoffer service on the Internet has given way to a
genuine necessity, he feels. "Itall depends on how busy a person is."

Start-up may take time

-In order to register for your bank’s online program,you will probably have to
provide ID and sign a form at a bank branch. If youand your spouse wish to view
and manage their assets together online, one of you may have to sign a durable
power of attorney before the bank will displayall of your holdings together.

Learning curves
- Banking sites can be difficult to navigate at first. Plan toinvest some time and\or
read the tutorials in order to become comfortable inyour virtual lobby.

Bank site changes-

Even the largest banks periodically upgrade their onlineprograms, adding new
features in unfamiliar places. In some cases, you mayhave to re-enter account
How Digital Banking Helps Customers?

Listed below are a few benefits of digital banking in India:

 Customer Care Service: With the increasing use of smart phones and laptops, customers can
access bank accounts at the click of a mouse. All you need is your laptop and internet
connectivity. This saves a lot of time and effort as you don’t have to visit the bank personally to
carry out banking functions. A bank customer can easily carry out his banking functions amidst
his busy schedule. The customer can access these facilities from anywhere, anytime.
 24*7 Availability: The customer can avail these services anytime he wishes. You can check
your account balance at any time of the day. These services are also available on public holidays,
Sundays and round the clock. Now, you can transfer money or check account balance without
having to worry about the time.
 Time Constraints: Previously, a number of banking services required considerable waiting
period. For example, earlier the process of applying for a personal loan and getting approval and
the loan sanctioned, took a minimum of a month. Now, with the emergence of online banking,
personal loans can be applied for and approved within a day. Digital banking had made
transactions and banking services faster, smoother with no time constraints.
 Bill Payments: previously, paying of bills required the customer to carry cash and stand in long
queues. The customer had to visit different offices to pay bills. Digital banking saves a lot of
time and effort. Not only can he pay bills online, he can pay all types of utility bills from the
comfort of home.
 Lower Overheads: Digital banking has considerably reduced the operational cost of banks. This
has helped banks save money and cut down costs. With a number of services being offered,
online banks can now charge lower fees. This also benefits depositors who can now get higher
interest rate on deposits. Lower the operating cost, higher is the profit margin of the banks.
 Banking Benefits: With the increased convenience of anytime, anywhere banking, the number
of customers has increased. Human error in calculations and record keeping has reduced, if not
eliminated. With records of every transaction being maintained electronically, it is possible to
generate reports and analyze data at any point, and for different purposes.
 Cheaper alternative - With increasing competition, it seems to be the cost factor
that is driving banks to offer the facility. The Internet is still a very cheap
alternative to opening a physical branch, and most of the push seems to be coming
from the supply side. The costs of a banking service through the Internet form a
fraction of costs through conventional methods

In the digital age, industries in every sector are expected to jump on the bandwagon—if they
haven’t already. Needless to say, our world is moving rapidly toward the digital direction,
and deciding to withstand these changes will lead to the demise of many businesses. Banking
is one of the industries being affected in this current digital climate. Research suggests that
companies refusing to move forward with digital transformation could possibly lose 35
percent profit, whereas banks that are up to speed with evolving technologies could gain 40
percent or more. Research also suggests that banks have about three to five years to get with
the program, but unfortunately, many banks are only in the beginning stages.

With the rise of digital banking, the majority of customers are no longer visiting physical
branch locations. Customers demand faster, more efficient ways of making transactions, and
banks simply can’t afford to fall behind. However, there are current challenges that banks
must face before tackling new ones. For instance, the economy is constantly changing, and
regulations are increasing. Moreover, customer expectations are higher than ever before. So
it’s vital for banks to take these challenges into account before aligning their business with
customer expectations. Additionally, trends like mobile banking, internet of everything (IoE),
banking on the cloud, and the fintech movement, which is the main contender in traditional
banking, are all important factors to take into consideration. But the root cause of the
changing face of banking is millennials, the largest demographic in the world. For
millennials, traditional banking is obsolete. As a matter of fact, 71 percent of millennials
would rather go to the dentist than talk to a bank teller (FirstData, 2015). However, they’re
far more open about money, with 75 percent of millennial couples discussing it at least once
a week, according to a CNBC article. Dr. Jane Greer, a psychotherapist and relationship
expert, says “Young people are very up front about the fact that they’re carrying debts, even
credit card debts.”

Banks are up for a real challenge as customer demands are constantly changing, but it’s only
in their best interest to adapt to these changes if they want to survive the next generation.
There’s no use in trying to revive traditional ways of banking—those days are long gone.
Millennials are enjoying the convenience of digital banking and generations before are
embracing it. It’s time for the banking industry to move forward with digital transformation,
because the change is happening now.