Role of Digitization in Banking
                     Role of digitization in 
banking
Digitalization has turned the world upside down for 
almost all industries that form our everyday 
ecosystem. With a truckload of opportunities coming 
their way, enterprises now have tremendous room for 
growth.
Introductio
n
Source: technostacks.com
If there’s one thing we cannot deny, it is the 
increased customer base that digitization brings to a 
sector. The banking domain has been no exception 
to this simple rule. An increasing number of people 
are relying every day on online banking solutions. 
Increased 
customers
Source: technostacks.com
A common question that makes its way to us is: Why 
is digitization necessary for banking? The advantage 
of efficiency answers the problem better than any 
other benefit. In a world that believes in speed and 
accuracy, digitization in banking has introduced both 
to entirely new levels. 
Enhanced 
efficiency
Source: technostacks.com
If we take a stroll towards the artistic side of 
digitalization regarding banking, we see that it has 
crafted a unique, user-friendly experience that never 
existed before. While banking earlier was symbolic of 
a slow and tiring queue that never ends, it now feels 
like a few simple clicks.
A user-
friendly 
experience
Source: technostacks.com
Digitization has induced the “pragmatic” and “accurate” 
element in sectors it has touched. For example, if we 
talk about digitization and banking, most significant 
decisions are now data-driven. The great thing about 
data-driven decisions is that they are less likely to fire 
back as they have been carefully collected from a well-
studied demographic.
Data-
driven 
decisions
Source: technostacks.com
Though it isn’t an advantage that is always 
mentioned, it is one that we cannot think enough 
about. Digital processes have brought in a noticeable 
amount of cost efficiency, which has been a useful 
trait for the banking sector and the consumers. 
Cost 
efficiency
Source: technostacks.com
Digitalization has made it easy and convenient for 
the customers and the financial institution, as now 
the use of physical cash has become very less as 
compared to digitalized cash and there is no need to 
take loads of cash from one place to another. 
Easy and 
Convenien
t
Source: blog.ipleaders.in
Challenges
Cybercrime is the use of digital instruments to further 
illegal ends, such as committing fraud, violating the 
privacy, or stealing identities. As the information and 
services have been digitalized the risk has been 
increased for both the bank and the consumer.
Cybercrim
e
Source: blog.ipleaders.in
In the surge of needing to convey products and 
services at an accelerated speed, companies 
regularly tend to compromise on the quality of the 
application. The issue with quality is that there is 
nothing of the sort as a little bug; a bug is a bug, it 
can harm the smartphones easily.
Delivering 
Quality at 
Speed
Source: blog.ipleaders.in
Technology is never constant, it always keeps on 
evolving. Hardly any year back, there were 
smartphones but now it has become mainstream. As 
technology develops, more and more banking 
services are digitized to cope with the competitive 
market.
Technology 
Upgrades
Source: blog.ipleaders.in