Digital Transformation (DT) effect on banking industry

Introduction:-

Digital transformation (DT) in the finance industry is a concept which has now
become part of a successful business strategy rather than just technology.

Digital Transformation is not only moving from traditional banking to a digital

world. It is a radical change in banks performance on how banks and other
financial institutions learn about, customer satisfaction and interaction. An
efficacious Digital Transformation begins with knowing digital customer’s needs
priorities, options, likes, dislikes, etc.… And this transformation leads to the major
changes in the organizations, from product-centric to customer-centric view.

Digital transformation affects positively on business operations in the finance

industry. It has led to opportunities of faster, cost-effective operations, meeting
regulatory deadlines, improved employee and customer experience and remaining
competitive.

Changing to E- banking is considered changing in business strategy instead of

technology strategy, monitoring how`s the modern banking look like today , we
can know exactly how Digital transformation has grown to benefits everyone with
greater convenience and experiences. From regular branches offices to ATM and
now Mobile application, and services provided through bank`s websites.

Using technology in banking services not only facilitate banking services to more
clients but also bank`s tool to reach to more clients in different region, the more E-
services the bank provide, the more client attraction get.

Consequently, it has now become a business strategy as opposed to a technology

strategy. When you consider how far modern banking has come, you can
understand how DT has grown to benefit everyone with greater convenience and
experiences. From its humble origins of branch offices to ATMs and now mobile
apps, the progress of banking has enabled digital technology to offer greater
choice, convenience and experience.
 Online banking allows client to do a lot of services with just few clicks in few
minutes instead of spending all day bear the suffering of reaching the bank, waiting
for their turn, and contacting with more than an employee to finish the same
service.

Here’s some example of services can be provided through E-banking:-

Pay a bill.
Electronic bill payment service allows a depositor to transfer money from his or
her online account to a creditor or merchant, for example to a public utility or
an outlet. There is no need to stand in a long queue on a weekend morning to
handle your transactions

 Schedule payments in advance.

Most banks recommend clients the ability to schedule a payment on a particular
date. Once the amount is entered and the payee is checked off, the funds are
automatically deducted from your online bank account. 

 Transfer funds.
 With online banking, you can make money transfers between your
own accounts, or send money to a third party account as well. All you need is
recipient/payee information and enough funds in your account. Quite often, the
operations are performed in real time.

 Manage all your accounts in one place.

Online banking is an enormous time saver because it provides a chance to
handle a number of bank accounts (checking, savings, CDs, IRAs, etc.) from a
single site. Most new accounts you open will be automatically added to OB
(Online Banking).
 Purchase and manage CD accounts.
You can purchase a certificate of deposit from your bank if you have money
you want to invest; online banking lets you compare all available offers as well
as the terms

Since the beginning of COVID- 19 and recommendation from WHO (World

Health Organization) with the necessity of maintaining the social distance, so a
lot of people was unable to complete their banking transaction through regular
branches – traditional banking – avoiding the contacts between the clients and
bankers , coinciding with WHO advising to use contactless payment and
avoiding money –as Corona virus can be transmitted by paper and coin-, all
 these motives encourage large segment of client to use Electronic banking
service.

Without a doubt, the demand for electronic services before Corona virus was
increasing because of lifestyle and less amount of time for physical banking.

During the pandemic banks are looking forward to enhance their online platform to
make most of banking service available online , as digital solution will have their
relevance even after end of pandemic