The Real-World Benefits of Digital Banking

(March 03, 2022) - When it comes to handling your personal finances in the modern world, digital banking provides the ultimate convenience. Whether you are using your computer, tablet, or smartphone, online money management tools and advanced mobile banking apps allow you to take control of your finances whenever, wherever.

From simplifying everyday transactions and saving valuable time to increasing the overall quality of your experience, digital banking is the future — and the future is here. According to Insider Intelligence's Mobile Banking Competitive Edge Study, 89% of American bank account holders use mobile applications or websites for account management.

At NBT Bank, our team is here to break down the real-world benefits of digital banking. Whether you've been handling your finances online for years or you're new to managing your money digitally, this guide will detail how you can get more than ever before with digital banking tools.

What is digital banking?

Digital banking is the combination of traditional financial services and the internet. From opening a new checking account to depositing checks and transferring funds, online and mobile banking allows you to access standard financial services via a secure website or mobile application.

Digital Banking Benefits

Mobile banking is convenient and helps you accomplish your day-to-day banking tasks with ease. Best of all, mobile banking isn’t simply a method to view how much money you have in your account. Rather, mobile banking offers a variety of additional features and benefits, allowing you to:

Unique Features

Unique Features

Unlike managing your finances in-person, digital banking provides you with access to unique features you could only take advantage of online. For example, many digital platforms offer powerful financial management tools directly within a website or mobile app. These tools allow you to do things like create custom budgets and tracking categories for income, spending, and fixed expenses, as well as check on your most recent credit report.

Additionally, many robust digital platforms provide tools to transfer money between you, your friends, and your family. No matter if you need to split the tab at your favorite restaurant or send money to pay your portion of the utility bills, this feature makes life a whole lot easier.

Ultimate Convenience

Ultimate Convenience

Rather than visiting a physical branch during office hours, digital banking allows you to manage your money wherever you have an internet connection or cellular service. And, because your smart devices (such as smartphones, tablets, or computers) are always typically readily available, you can get to your money faster than ever. Online and mobile financial tools give you the flexibility to do things like:

  • Check your account balance
  • View your transaction history
  • Deposit checks
  • Transfer funds
  • And more

These digital tools can also help you move to cashless transactions. Cash is typically cumbersome, dirty, and difficult to track, while electronic transactions are streamlined, clean (you don’t have to touch physical money), and easy to track.

Advanced Security

Advanced Security

Most digital financial platforms provide you with multiple layers of protection to ensure your sensitive information is secure. With features like password-controlled system entry, data encryption, and secure servers that control the inflow and outflow of traffic on the web, digital banking can provide even more security than handling your transactions with a physical card or cash.

Also, many digital platforms allow you to take the security of your money into your own hands. For example, in just a few taps or clicks, you can do things like:

  • Lock and unlock your card
  • Enable or disable your card to be used within certain merchant categories
  • Restrict transactions to certain areas using your phone's GPS.