Role of digitization in Banking Sector

 Digitization is the process of converting data into digital format. Digitization

means the adoption of technology.
 Digitization is not an option for the banking industry, rather it is
inevitable because every industry is being digitized and banking sector is no
exception.
 With the help of technology, banks are able to reach out to more customers
and provide better services to them.

1. Mobile banking
2. Automated Teller Machine
3. Debit cards
4. Internet Banking

Advantages of digitization in banking

 Improved customer experience.
 Reduction of costs for banks and customers as well by using ATMs, cashless
transactions etc.
 Technology is non-discriminatory. Everyone will be treated same at banks.
 It reduces human error.
 Repetitive tasks will be eliminated by automation.
 The rural and urban gap will be eliminated.
 Productivity will be increased.
 With the increasing cashless transactions, fake currency threat will be
reduced.
 Cashless transactions ensure transparency and reduce black money formation.
 In digitization Cashless transactions counter tax evasions.
 The problem of fake currency notes can be eliminated by digital payment.

Disadvantages of digitization in banking:-

 Banks will be more vulnerable to cyber attacks as Cybercrime sand other
modes of thefts will be increased. There is a lack of digital awareness in the
country, forget about awareness about cyber crimes.
 A large part of Indian population is digital illiterates so they are not
comfortable with banking digitization.

Conclusion :-
 The world of digitisation has brought a new opportunity for emerging
economies to have a level playing field with developed countries.
Digitisation has enabled many emerging economies including India to
deploying some of the latest technological advancements in various
spheres including banking.
 With the increasing usage of smartphones, digitization of banking sector
is inevitable to catch up the increasing expectations of the world. It indeed
reduced human errors and increased convenience. But the fact that cyber
threats are on the rise, banks must be very careful and should be prepared
to handle cyber attacks.
 It is undoubted that Digitization has inbuilt benefits, but setting up a clear
objectives, vision, finalizing the approach and selecting the right tools is a
challenge and depends on the experience and Expertise.
Conclusion: Emerging technologies have changed the banking
industry from paper and branch based banks to”digitized and networked
banking services. Therefore we can conclude that "Technology has
played a big role in reducing fraud in banks which protects its clients".

Conclusion
Digital has the potential to change the traditional business model of
banks. The banks that are willing to embrace digital are likely to benefit
in many ways. Digital banking implementations is going to change the
banking sector.