Personal Banking In The Digital Age: Understanding The Benefits And Challenges


The banking sector has undergone a massive alteration with the digitalisation of the age. The operation systems of a personal bank are no longer limited to manual efforts by the officials; rather it has changed to a more efficient way of performing their duties. This digital change in the banking sector has helped in simplifying the process to a certain extent. However, digitalisation sometimes might not always be a positive evolution. Let us check out how beneficial it is and what are the loopholes.

How Is Digital Banking Beneficial?

Digital banking has transformed the hectic traditional ways of banking more hassle-free. Account holders do not have to always visit the bank physically for every minute matters rather they can sit at home and operate multiple functions simultaneously. Listed below are some of the major advantages of digital banking:

● Multiple Features Together

Digital banking is mainly conducted through application. Many such banking apps provide their user with an array of features. Most major banking apps like IDFC FIRST Bank digital banking app offers numerous facilities like quick bill payments, loan management, regular savings etc. Here,  you can access every function of personal banks within a single application.

●  Quickens The Process

An added advantage of digital banking is the incredible link they have to e-commerce. Nowadays, cash-on-deliveries are very rare because of the impeccable facility of using the online banking options for payment in shopping apps and various others. This payment mode makes the entire process more efficient and rapid.

● Offers Better Security

Another, most important thing it focuses on is providing the utmost security to its users. In earlier days, breach of information from bank data was a very common source of various crimes. But, with a personal online bank the security of the client’s information is ensured by various technologies like biometric identification, monitoring and detection, password management, encryption, etc. These facilities can never be applicable for the traditional ways of personal banking.

● Convenient Way Of Banking

In older times for each function you have to visit a particular department. Hence, if you want to request for a cheque book and link your aadhar you will need to visit the respective departments. As a result, you cannot effectively perform 2-3 tasks at the same time. However, incase of digital marketing you can link your Aadhar, complete your KYC, and request a cheque book with just three-four clicks without having to stand in three different long queues. Hence, it is a far more convenient option of banking.

What Are Common Challenges Faced?

Digital banking has also brought a few risks with itself. The physical distance that online banking apps have created has become the platform for cyber attacks. The involvement of third party applications in various personal bank online operations can be held accountable for the rapid rise in cyber attacks. These cyber attacks then ultimately lead to leakage of personal data of an individual resulting in the various scams.

In short, the misuse of the technology has made digital marketing challenging for many people, especially the older adults. Elderly people are not well-versed with the points of potential risks hence become easy prey for fraudsters.

Final Thoughts

Personal banking in the digital age has two sides of the coin – benefits and challenges. Therefore, to understand this concept you must be well aware of the intricacies involved. You need to learn the various loopholes and how to deal with them for a better experience. With trusted names like IDFC FIRST Bank, personal banking becomes easier than ever.

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