Due to the advantages of digital banking, many people have never been within a brick-and-mortar bank. From accessing all of the functions of banking on the internet or mobile device to the ability to make cashless transactions possible in a vast array of retailers, it seems the digital age of banking doesn’t see the future. It’s now.
Table of Content
What is digital banking?
Digital banking is the digitalization (or shifting on the web) of all traditional banking processes and services previously only accessible to customers physically within an actual bank branch. This includes things like
- Money Deposits, Withdrawals, and Transfers
- Checking/Saving Account Management
- Applying for Financial Products
- Loan Management
- Bill Pay
- Account Services
What Are the Benefits of Digital Banking?
Digital banking provides many advantages for both consumers as well as business owners. There are a few:
Access. With desktop and mobile access to your bank accounts, Digital banking lets you not be tied to banking hours to manage your finances.
Lower rates and lower fees. With online banks reducing fees, customers can choose from various alternatives to their brick-and-mortar financial institutions. In addition, it’s simple to evaluate rates and fees to find the right bank that meets your needs.
Equity. Upstart online banks make banking accessible on a level playing field by reaching out to unbanked and underbanked communities that depend largely on cell phones but might not have access to branch locations at banks.
Digital banking services
1. Simple Self-Registration
The online self-onboarding procedure allows users to sign up for bank products (such as opening a bank account) independently, regardless of their device.
When introducing a new customer, the bank must collect and verify customer data and documents, make sure that legal aspects are covered, and carry out due diligence in accordance with guidelines.
All of this must be accomplished digitally in four easy steps. Therefore, an extended process that lacks instructions could result in a lengthy onboarding process and an unsatisfactory service for digital banking.
2. Automatic Bill Payments
This digital banking service does more than make the life of your customers easier. It could also serve as an incentive for customers to switch banks.
Opening a digital account is often the first step following self-registration. The process from beginning to end must be flawlessly synchronized and streamlined – from collecting customer information to selecting the kind of account.
The customer should be able to sign up and establish an account with several clicks in less than 5 minutes, and is considered the best method for online customer onboarding.
3. Automatic Bill Payments
Payments for bills are a common monthly process for both personal and business banking customers. It is one of the areas where automation is already providing ease.
Modern digital banking services let customers link bills directly to their bank accounts or credit cards and pay their bills through a central place, manually, or through a scheduled automatic payment on time.
Your customers can be empowered with the full range of administration features, such as quick access, control over bills, continuous integration into other systems, real-time overview, and the generation of reports.
4. Mobile Contactless Merchant Payments
Contactless mobile payments have become an increasingly popular digital banking option, and the COVID-19 epidemic has further accelerated the process. As a result, retailers are in the process of implementing measures that make it harder for customers to touch surfaces as well as use cash.
Mobile contactless payments permit users to use their smartphones to tap the POS terminal (or other readers free of touch) to make a payment. It’s a fast, efficient, secure, and convenient payment option for consumers and merchants.
The most popular technologies used to make contactless payments include Near Field Communication (NFC) and QR codes.
5. Instant P2P Payments
P2P (Peer-to-Peer) is thriving in today’s financial environment. It’s a simple payment option that allows customers to transfer money immediately using any device.
Utilizing a bank account linked to a credit/debit or a wallet-stored-value account, users can easily transfer money to family and friends through their smartphone or laptop in a click or two taps.
In terms of customer ease and convenience, P2P is an unbeatable feature perfect for the ever-growing mobile-first culture in which financial transactions are expected to occur in real-time.
P2P transactions must be secured by a high amount of security and proper safeguards against fraud, for example, biometrics, PIN, and OTP (Time Password).
The Best Digital Banks for ecommerce in 2023
1. Payoneer
Payoneer is rapidly becoming a top financial processing firm based in New York. With Payoneer, users can request and get a virtual bank account number to assist in processing transactions, receiving money, and even making payments. Payoneer is becoming more well-liked by many businesses and even merchants. Payoneer has a wide range of online marketplaces, which include eBay, Rakuten, and even Amazon.
Presently, Payoneer is accessible in over 150 countries around the world. Suppose you are interested in using Payoneer to conduct your personal or business transaction. In that case, it is possible to get an account number for your local bank when you reside in the US or the UK, Japan, the EU, Canada, Singapore, Mexico, or Australia. The currency options listed below are accepted and accepted by Payoneer: USD JPY, CAD, GPB, EUR, USD, and CNH.
2. Revolut
Revolut is a British-based electronic bank that’s been operating since the year 2015. The business has since expanded to Europe, Australia, Singapore, and the USA.
Revolut provides an account for businesses which allows you to accept card payments directly, store and trade funds in more than 28 currencies, pay in more than 150 currencies, and connect with other business applications like Xero, Quickbooks, and Slack.
The payment plugins from Revolut that are compatible with WooCommerce, Prestashop, and Magento let you begin accepting credit card transactions on the eCommerce site in various currencies and with lower costs than the majority of different payment processing services:
3. N26
N26 is an electronic bank that is accessible in a variety of languages which include English, Spanish, French and Italian. It was established in 2013, and the mission was to satisfy the need of freelancers to efficiently manage invoices, process payments, and deal with various currencies from anywhere when working remotely. If you’re freelance or deal with clients from all over the globe, using N26 can simplify the control of your finances and the various currencies you use to deliver your products or services.
Every N26 account is free to open and use, including corporate accounts that use N26. In addition, there are no foreign transaction or management charges for users of N26; this makes N26 one of the more sought-after digital banks for individuals and freelancers from all over the globe today.
4. Wise (Previously TransferWise)
Wise, based in the UK, recently underwent a branding change to reflect its position as a company providing financial services instead of just an international transfer company.
Like Payoneer, Wise is an electronic money account instead of an entire bank account. This means that you don’t earn interest in your accounts’ balances. However, it’s a great option for global eCommerce business owners since you can send money, receive and even convert currencies for a small fee and market-based exchange rates.
With the Wise Business account, you receive an IBAN or routing number as well as an account number and sort code and debit card without needing an actual bank account. You can pay for invoices across 70 countries using the actual market rate and pay employees around the world without incurring transaction costs, transfer funds in multiple currencies and transfer money between various accounts without having to pay high rates for currency conversion and withdrawal.
5. Mercury
Mercury customers can connect their accounts to the most well-known payment processors, such as Stripe, Paypal, and Amazon, as well as integrate with Quickbooks and Xero, which allow for automated transfer of transactions that can help in e-commerce transactions and sales.
With these options With these features, your Mercury account will monitor the entire cycle of payment, from the purchase by the customer until the transaction is posted in the bank account. You’re looking for this when you open an e-commerce-enabled bank account.
Mercury has easy-to-use, built-in tools that allow you to make payments and get them, process transactions efficiently, and make refunds for your online store or business.
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