The number of customers of digital banks, which is an intermediary between electronic stores and shoppers, is increasing daily, and they rely on encrypted digital money that is not like a banknote. These banks have become a major pillar of e-commerce. There are many Digital banking advantages and disadvantages we will explain.
Digital Banking was founded on the premise that Digital Bank’s survival depends on its ability to move from being the location of the right information and a place to provide the solution based on this information to a place to manage investment opportunities and provide financial services quickly and cost less
Based on the amazing development of technologies and means and the increasing trend towards electronic payment of cash, there is a clear increase in the justification for the construction of these banks, if we know that airlines, insurance, hotels, oil, all have electronic payments, which requires the presence of electronic banks.
The international data confirms that the cost of conducting Digital banking accounts for about 0.2% of its cost in the case of relying on the traditional bank branch, 3.6% in the case of using the telephone service, while it constitutes 8% of its cost in the case of using an ATM. Digital banking offers many banking services such as electronic payment of bills without fees, while traditional banks that provide this service charge with a high fee for them.
Digital Banking Advantages
The advantages of digital banking increase the efficiency of the performance of banks and improve the level of service, saving time and effort for the customer as well as the staff of the bank, as well as the availability of 24-hour service, including public holidays, and tight control of banking operations, and send and receive documents quickly.
1- save effort and time where the customer can conduct banking operations without having to go to the headquarters of a bank, where he can at home or library, which saves his time and effort.
2- The ease of banking transactions in electronic banks and the speed of conducting them.
3 provide higher security and less risk of manipulation or theft of checks, in addition to the reliability of cash flows, and the speed of the movement of cash.
4- Digital banks are characterized by the organization of cash payments, which contributes to the agreed time for the date of deduction and payment of the value of financial transfers is organized.
5. Conducting financial transactions in Yusr due to the cancellation of the automatic swap process, which requires the client to visit the bank to deposit the value of his transfers.
6- Reducing the dependence on paper forms, as all transactions are done electronically, which contributes to reducing the expenses incurred by the conventional bank and the client pays them administrative expenses.
Despite these advantages, the mobile bank with its technology has risks as any new technology must have some risks, and economists warn of the potential dangers of dealing with the mobile bank system, including:
1 – The difficulty of determining the liquidity of any electronic bank, where it is not possible to know or limit the bank’s internal and external transactions.
2- Easy to harm the national economy of any country, where these banks can not be monitored significantly, where remittances can be made only with the press of a phone button.
3- easy to fall victim to fraudulent operations, by falsifying some cards.
4- A professional computer technician can penetrate accounts or copy other people’s information, enabling the information to come out of its confidential framework.
5- is always expected to occur a technical error that can hinder the work of the whole bank and the loss of accounts of people and can be a virus that infects electronic devices to penetrate this system and disrupt it.
6- Increase the gap that arises between the client and the bank, which may entail some borrowing operations without adequate collateral, and the bank’s exposure to fraud.