Understanding Digital Banking

“For the subset of persons who avoided digital banking, it was concluded that culturally persons preferring to visit the branch in person. Further, 13% of the respondents that felt the online banking was not secure and another 12% that did not understand how to use the services.”

— The Central Bank of The Bahamas, Commercial Banks Customer Survey (2018).

It has been tradition to visit the bank and get your ‘little book’ updated. However, times are rapidly changing as banks switch towards technology focused banking. Nonetheless, many people are hesitant when it comes to digital banking, mainly because it’s unfamiliar territory. If you are someone who is nervous about using digital banking platforms, this article is for you.  

What is Digital Banking?

Digital banking is the use of technology to process banking transactions, with use of the Automated Teller Machines (ATMs), your computer, and other mobile devices. Technology has taken the world by storm and the banking industry lives by the famous, old saying; “If you can’t beat them, join them.” Digital banking promises to be more efficient for users as transactions can be processed faster without the need for human interaction.

Is Signing Up for Online Banking Difficult?

Not at all! At most banks, you can request online banking access during the account opening process. This is the best time because you will be able to address any issues that may arise during the process. However, if you may be pressed for time and cannot wait, it is simple to set up an online banking account from home with the use of account numbers and/or debit cards. If you run into problems, simply contact the bank by visiting a branch or calling the 24-hour support lines.

What Are The Advantages of Using Digital Banking?

It seems as though we have less and less time during the day with an ever-growing list of things to do. Given the huge impact of banking on our lives, digital banking can provide us with many benefits, including:

• You can access standard banking services 24/7 through any of your mobile devices, computers, or through the bank’s ATM. 
• There are normally lower fees associated with digital banking than traditional ‘brick and mortar’ banking. Some banks actually offer accounts that charge no fees once digital banking channels are used. 
• You can detect fraudulent activity on your account at any time of the day. Digital banking allows you to view transactions from anywhere at any time. No more waiting for that monthly statement to determine if a transaction is suspicious. If anything is out of whack, you will notice it the next time you sign into our online account. 
• Digital banking saves time because you would not need to wait in line for most transactions.

What Concerns Do New Users Have?

With any form of change, there is a process of adapting and adjusting. This is only natural, so do not be afraid if you have concerns. Fortunately, with digital banking, there are only a few common concerns:  

• For some, the fact that banking will lose some of its “human touch” is concerning. While trust of technology is growing, many still question its true ability to be accurate and maintain privacy. Despite this, banking will still retain some form of human interaction, though on a smaller scale.  
• Many people are concerned about the security risks associated with digital access to their bank accounts. Through increased monitoring and effective security practices, these concerns can be easily addressed. Check out our post on online banking safety tips at (insert link).

What Transactions Can I Perform with Digital Banking?

Many people may think that digital banking is simply for viewing transactions; however, digital banking platforms today provide many different functions. Here is just a short list of the major transactions performed most frequently through digital channels:

• Withdrawals and deposits at the ATM;  
• Instant transferring of funds to different accounts;  
• Bill payments to utility and insurance companies; 
• Standing orders (repeated transfers that take place periodically); and  
• Credit card and other loan payments.

What Can I Do To Protect Myself While Digital Banking?

• Never give out your Personal Identification Number (PIN) to anyone else.  
• Make sure the password for your online banking platform is strong, and change the password regularly. Try to stay away from using the same password for other online mediums, such as social media and email accounts. 
• When possible, setup specific codes that must be entered to authorize transfers. 
• Monitor your account regularly to keep an eye out for fraudulent activity. e.
• Avoid using public Wi-Fi when signing into your accounts. 
• All online banking websites should have a “secure” symbol in the address bar. If it does not, it may not be the actual website.  
• Contact your bank immediately if you notice any suspicious activity on your account.

So, grab those smartphones and download your bank’s digital banking app today. Make this technology work for you by saving time and money. With all that extra time you will have, you can focus on other things that will help you to “Get Money Smart.”