Digital Banking is the new-age concept that offers complete banking solutions digitally to customers. A Digital Bank operates exclusively online with no physical branches or any physical interface between the bank and the customer. Simply put, for a digital bank customer, the smartphone is the bank. It is the answer to the shortcomings posed by a traditional brick-and-mortar bank by offering simple banking solutions to today’s tech-savvy generation.
The concept of Digital Banking has already made its mark in the developed economies in the west, and consumers have embraced digital banking at a rapid pace. From opening a bank account through a mobile application to spending, saving, and managing money, all in one place, people abroad are already hooked on to the value proposition offered by digital banks. These users are already experiencing the digital revolution in banking in a big way.
Why are Digital Banks better?
What works to customers’ advantage is the intuitive user interface and low-cost model of Digital Banks, which translate into a feature-rich environment of services and products with easy accessibility for the users. The cost efficiency is largely on account of robust technology systems, little to no real estate and distribution cost that shifts the operating focus to customer needs before anything else.
So, when it comes to the users of Digital Bank, the value proposition in terms of cost, value-added features, and the security of transactions is huge. Based on users’ transactions, Digital Banks offer personalised insights and, through predictive intelligence, offer products that suit the customer’s needs.
So are there any True Digital Banks in India?
Airtel Payments Bank, with its digital-first approach, is a true digital bank in the country. Unlike traditional banks, which are physical in nature and have added online as an add-on, Airtel Payments Bank is a digital-only bank where all services can be accessed via its Airtel Thanks app.
It offers all you expect your bank to do for you, from opening a bank account to transferring funds to making payments. And all this from the comfort of your home or office without having to visit any branch. It just takes a video call to open an account with Airtel Payments Bank, and after that, you can do the banking you like – money transfer, recharges, bill payments or purchasing insurance.
What’s more, you can also earn higher returns on your savings than most traditional banks. As a digital bank, Airtel Payments Bank aims to make banking simpler, more convenient, and more intuitive for you.
So what are some other Advantages?
Easy to use UI/UX: The intuitive UI/UX brings in the comfort level that bank customers always wanted while banking digitally.
Bank account opening made easy: The entire KYC process is entirely paperless with zero contact and is conducted through a video call.
Earn higher returns with no lock-in period: You can earn higher interests on your savings account with Airtel Payments Bank. The bank offers an annual interest rate of 6% on a balance between Rs 1-2 lakhs and 2.5% on up to Rs 1 lakh.
Zero account opening charges and Zero Balance: You do not have to pay any fee to open an account with the bank, and there is no minimum balance requirement in maintaining a digital account. This gives you the freedom to operate the account exactly as you want.
Rewards123: This specially designed digital savings account gives assured rewards on different types of digital transactions throughout the year. The more you transact digitally using the account, the more value you get. It offers cashback on online purchases, bill payments, and various recharges, and even when you add money using UPI.
Airtel Safe Pay: In addition to the standard safety practices of OTPs and mPINs, Airtel Payments Bank has the feature of ‘Airtel Safe Pay’, which makes sure that no money leaves your account without your explicit approval. This means that you don’t have to worry about unauthorised and fraudulent transactions.
DigiGold: You can purchase, hold, gift, and sell 24K gold from anywhere. This feature is best for new gold investors as there is no minimum investment value requirement, and you can start with as low as one rupee.
While physical banks are the most popular option, Digital Banking is fast becoming the go-to option for the tech-savvy millennial population in the country with its tenets of convenience, value, and security.
The above article is sponsored by Airtel Payments Bank