Castler Escrow

Digital-Only Banking is Looming

Time is, inarguably, the most crucial resource in today’s dynamic world. In order to keep up with today’s fast-paced global economy, managing time effectively is a must. This is the very premise of the success of digital banks, and for good reason.

The looming rise of digital-only banking is disrupting the banking industry significantly. More and more banking activities are increasingly being digitised. Today an individual can deposit cheques and transfer money from his/her account using a cellular device. It is a blatant opposition of physical laws, which is amazing in its own right. You can forever wonder how human capacity grew to these heights and remain awe-struck.
In-fact, now we’re at a point in technological advancement that takes human touch out of the equation. We have managed to create virtual assistants, and this is steadily being normalised. (“But of-course?” is what you would think when someone describes awe for artificial intelligence). Digital-only banking is increasingly adopting AI technology to improve the efficiency of their processes. According to Business Insider, a staggering 89% of people claim to use mobile banking. Another substantial 70% said that they use mobile banking as their go-to when accessing their accounts.

Pros of Digital Banking

If you ever find yourself questioning the effects of the rise of digital-only banking, know that a payroll cheque can be deposited in a bank account in seconds today. And there are far too many everyday examples that attest to the effectiveness of digital banking –
  • Mobile deposits have become much more convenient – rather than making a trip to the bank and waiting in line to deposit a check, you can limit the tedious process to a few clicks.
  • A customer need not be a great photographer to capture ideal photographs/scans of the cheque. You can simply position the cheque within the confines of the digital boundaries and the AI will automatically capture clear pictures. The process would hardly take a few seconds, whereas physically visiting the bank can take up to 10-30 minutes (excluding travel time).
  • Customers can easily apply for loans from home. Managing capital and assets has become incredibly easy with fintech innovations.
    • Digital banking solutions promise convenience, and yearly trends of customer banking preferences show that more and more banking customers are opting for digital ways to carry out bank-related activities. A digital mode helps with versatility and improved ease, and this is attractive to users. And therefore while a physical money transfer is a tedious task (albeit the fact that one is fearful of any lossess they may incur at human hands), transferring funds digitally is incomparably convenient and has a much lower probability of encountering a fraud.
    To not have a physical brick-and-mortar style bank today would be the smart step to growth and advancement. Since almost everyone is the proud owner of a smartphone, the physical worth of services and processes is bound to get further diminished with time.

    Digital Escrows Are Honing A Revolution

    Using an escrow account guarantees that your transaction will be fulfilled successfully. Since escrows are formed on the basis of agreements between the transacting parties, they also ensure maximum security and accountability. An unbiased third party facilitates the smooth execution of a transaction, and also guarantees that a transaction is fulfilled according to the conditions decided by the transacting parties. This is precisely why escrows are a globally preferred payment solution.
    Escrow can be used in a multitude of business scenarios, ranging from small transactions of a few hundred Indian Rupees to huge exchanges worth crores. Escrows offer immense flexibility, and digital escrow companies often develop a wide variety of solutions to cater to the needs of enterprises.
    To illustrate the utility of escrow, we can consider a relatable scenario – when an individual purchases/sells a home, the addition of an escrow account creates an element of trust between the two parties. This happens due to the presence of a neutral third party that spectates the result of the arrangement and disburses the funds when the transaction has been completed (according to the terms set by the parties).
    Although escrow is thought of to only consist of a third party in order to follow through with a transaction, there are other ways that allow for direct business to be conducted – an escrow without a neutral third party. Mind you, these alternatives to third parties are still a part of the escrow system and surprisingly not that hard to use. Virie is an example of the first blockchain-based escrow site that does not require a third party for neutral transactions.

    Seize the Virtual

    There exist a gamut of secure, direct transactions that you and/or your business can dive into for more transparent and accountable payment processes. And since the solution promises ease and flexibility, it would’nt hurt to evaluate the ROI of utilizing a non-convential solution (although digital is consistently becoming the new black).
    At this point, we cannot fathom the extent to which current digital banking trends will get reshaped. Maybe one day we’ll be able to pay just by thinking of the person and the payable amount. Its exciting to imagine the unimaginable. In order to ensure that constantly evolving technology is adopted and used by all, the world will have to keep up with the exponential rate of technological advancement.

    Comment your thoughts down below and share with us what you think! You can also mention any particular fintech topics you would like us to cover in our upcoming blogs.

    Read More: Crypto Escrows – Propelling Transactions and The Economy

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