Top 5 Digital Banking Myths Community Banks Need to Abandon

Whether we like it or not, digital payments are here to stay. FinTech businesses are constantly pushing the online payment gateway envelope with each passing day. New concepts and services are always being developed. Non-traditional FinTech firms are also entering the digital payments market.

As you can see, digital payments are already here, and they are expected to increase tremendously as more people accept them and more solutions become available.

So, why is this market sector expanding so quickly? There are three basic reasons for this: People, first and foremost, enjoy utilizing their digital gadgets; secondly, they enjoy conveniences; and, thirdly, they enjoy the concept of completing things fast. We can all relate to the sense of success that comes from sitting down with a cup of coffee and paying bills or making purchases - how handy and quick! It just permits us to devote more time to other pursuits.

With such broad appeal, it is no surprise that digital banking will be the future of all financial institutions (small community banks or large global banks). To be relevant, financial institutions must transform into an institution that embraces the digital | mobile platform with open arms. It is especially important for community banks and credit unions to adapt since this will give them unique development prospects.

The following are some myths that community banks/credit unions must dispel:

Myth 1: Digital payment platforms are more suited for national and global banks

By providing a simple and quick way of communicating with customers, the best payment gateway in India allows businesses to contact consumers in new contexts. The sophisticated media is quite useful for creating rich and multichannel brand experiences. For tiny regional banks, becoming digital is nearly a need. Regional banks typically offer solutions that are tailored to the needs of their local community.

Assume you are a small bank that mostly serves farmers and has developed financial solutions to meet their specific needs. Wouldn't it be fantastic if you could bring these unique financial solutions to other farmers all around the world? Now that we live in the digital age, it is extremely simple to do so. As a result, regional/smaller banks have a chance to boost their income in the particular sectors they service on a worldwide scale.

Along with being technologically advanced, it is still important to improve and enrich the client experience.

Myth 2: Digital payments platforms are too complex and expensive

A digital payment platform does not have to be complicated or costly. Many digital payment platform companies provide cloud-based solutions, removing the burden of hosting and managing these systems. Furthermore, these cloud solutions are often charged per service, allowing you to pick and choose whatever services you require to support your customer base. This strategy enables you to implement digital services at the same rate as your company expands. Digital payment systems offer a new source of revenue for many banks, rather than an infrastructure update with no return on investment.

Myth 3: Digital payments are for the younger generation

The growth of smartphones has been considerably more amazing than anyone expected in the previous decade. With network speeds rising dramatically from 3G to 5G, a slew of new mobile applications and services are now available via the smartphone. Mobile services are altering people's lives by making numerous activities easier and faster, whether it's e-commerce or banking. Smartphone use is no longer confined to the younger generations.

Financial institutions have discovered that the benefits and convenience of digital devices are appealing to people of all ages. They have seen an increase in usage from consumers between the ages of 40 and 50, and it appears that they prefer to handle their money using mobile devices such as smartphones and tablets.

Myth 4: Digital payments Increase Consumers’ Chance of Fraud

Payments made via electronic devices and channels are considered digital payment methods. Credit/debit cards, online payment gateway, and mobile payment applications are the most prevalent methods of making electronic payments. Merchants and customers have been hesitant to accept the most recent digital payment methods due to preconceived ideas. The notion that digital payments are prone to fraud does not hold much weight in their minds. These e-wallets and digital payment gateways are outfitted with sophisticated security measures such as data encryption, an address verification system, and Payment Card Industry Data Security Standards (PCI DSS), making them a secure means of sending funds.

In conclusion, community banks/credit unions should not be concerned and should be confident in implementing new digital payment platforms. Digital systems, in particular, link merchants and consumers through a single platform, making the process of moving and receiving cash both frictionless and smooth.

Myth 5: Digital payments and Local Payment Methods (LPMs) make global payments riskier

Security measures such as multi-factor authentication are built into online payment gateway and worldwide payment networks and are tied to the specific banks to which individual consumers belong. These payment options can assist internet merchants headquartered in the United States in entering the worldwide market. Retailers in the United States should no longer limit their market by relying on traditional payment methods.

Conclusion

Thus, by embracing digital technology, regional banks/credit unions may broaden their reach and client base across diverse geographical regions. Furthermore, they may assist their clients in achieving their worldwide goals. Community banks and credit unions benefit from digital technology, which broadens their scope and enhances their chances of success.