Digital banking is another term given to the growing popularity and development of online banking services. Digital banking has been developed and implemented by institutions around the world to address some major shortcomings of traditional banking systems such as lack of customer service, lack of convenience for customers and poor access to certain financial services. In addition, the increase in digital banking has led to a different type of banking, and crypto banking has also increased the adoption of cryptocurrencies as a form of payment.
The first application of digital banking was longer than most people could initially understand, with the advent of digital banking services such as ATMs for cash and debit cards in the 1950s-1960s. By the 1990s, internet banking had a great popularity in the developed world due to the rise of the internet.
Why is Digital Banking Rising?
Ease
There has been a noticeable increase in the number and success of “challenging banks” in the UK. These are digitally dealt with all interactions with banks and customers without physical branches, while some have 24/7 telephone customer service. The main reasons for these changes are that people in the UK are looking for faster and more convenient banking options.
Saving on Infrastructure and Business Costs
One way to move towards digitalization can positively impact businesses in the banking sector is the potential to incentivize cost savings of such action as a result of streamlining operational procedures. This also allows banking providers to use cost-free funds to provide better service to customers, such as lowering fees for customers.
Digitization can benefit both business and customers as it allows simplification of the recruitment process. A real example of where this is implemented can be seen from the US-based Mariner Bank, which implements SaaS from Digital Onboarding, so that its staff spend less time filling out forms, and therefore spend more time personally serving customers who need help. .
What is the Relationship of Digital Banking with Cryptocurrencies?
As cryptocurrencies rose to popularity in 2017 and had financial assets, they cut a devastating and controversial figure in the financial world and began to build an interesting relationship with the current digital banking environment.
One of the reasons for the slight change of heart in relation to cryptocurrencies has been the gradual relaxing of cryptocurrency regulations in certain states. Previously, bans on cryptocurrency activities were common, which prevented the symbiotic growth between digital banking and cryptocurrencies.
Some giants of the financial sector are beginning to adopt cryptocurrencies and recognize the value they can bring to their organizations. JP Morgan, for example, created his own digital currency to reduce the time it takes to transfer money between the two parties. In addition, the banking giant claims that they will facilitate transfers over different blockchains and the company claims that they always see the potential in digital currencies.
Digital banking has helped uncover a new type of bank, the cryptocurrency bank. While a cryptocurrency bank may seem complicated, it is actually institutions that perform the same functions as a normal digital bank, but there is a significant difference. By their name, such banks include cryptocurrency-related services as part of their repertoire for their customers.
There has been a huge increase in the number of cryptocurrency ATMs that customers can use.
How Will This Change Affect Crypto Money Banking?
The rise of digital banking continues to have a positive impact on the viability and utility of cryptocurrency banking.
In 2020, 153 million unique Bitcoin wallet addresses went into circulation and the number of active wallets is around 550,000. In February 2019, there were 32 million Bitcoin wallet addresses, which has increased by 121 million wallets since then.
Crypto money banking also faces intense challenges for the future. In its current state, although progress has always been made, the cryptocurrency banking system is not fitted a bit for the purpose. The continuing volatility of the regulatory environment related to the threats from the traditional banking sector and cryptocurrencies constitutes important obstacles to widespread acceptance.
It is believed that crypto banking can fill an important gap in traditional and digital banking, which are international money transfers. Money transfer between blockchain and countries greatly reduces the associated costs of the transfer and allows money to be sent much faster than possible with traditional banks. Since globalization increases the number of international money transfers, individuals who send money to their countries for both businesses and their families benefit greatly from this.
