With more than 1.2 billion users in 2023, India boasts the second-largest internet population in the world. A large majority of them surf the internet through their smartphones. Access to mobile phones and affordable internet connectivity has increased the use of online banking services.
As people are becoming more dependent on bank mobile app solutions, it is creating a revolutionary impact on the financial landscape. Digital banking apps have increased people’s access to financial services, including sending money across borders. Scroll through this article to understand how they have facilitated the worldwide movement of capital. Apart from providing convenience, online banking services have facilitated financial inclusion. Jump into this article to get an overview of how this has led to the global movement of capital.
Supporting the Unbanked
Traditional banking often disabled individuals in remote areas from accessing financial services. People in rural areas who need to physically travel miles to visit a bank often refrain from seeking such services. Even if they make the effort to arrive at the banks, the long queues and heavy documentation requirements discourage them.
But an online banking account eliminates the need to be physically present at a bank branch to seek financial services. With a simple account opening process and minimal costs, the online mode is much more convenient. In developing countries like India, online banking is often the unbanked and underbanked people’s first interaction with formal financial services.
Supports Cross-Border Transactions
Thanks to online banking, capital assets can now freely move across borders and contribute to economic integration. It’s true that people used to send money across borders even before the advent of digital payments. But such processes like international money orders and wire transfers were time-consuming and expensive.
With online banking apps, people can send money to recipients in other countries within a fraction of a second. The cost of international money transfers has also come down significantly, making them more common. Payment platforms utilise technologies like blockchain and digital wallets to support secure cross-border transactions.
Promotes Growth and Transparency
As online banking services become more mainstream, they enable financial stability and economic growth on a global scale. Online banking offers greater access to formal financial services, reducing the dependence on informal channels like cash-based transactions.
If you are looking for increased transparency and accountability, put your faith in online credit banking. As regulatory authorities are undertaking robust measures to enhance the security of digital transactions, online fraudulent activities are coming under control.
Ending Note
There’s no denying that online banking services hold the potential to promote financial inclusion and capital movement on a global scale. With the help of digital technologies, these platforms empower individuals and businesses to seamlessly carry out financial transactions. Download the IDFC FIRST Bank mobile app to fulfil all your banking needs in one single place.