Differences Between Traditional Current Account and Digital Current Account

Posted on Wednesday, September 20th, 2023 | By Indusind Bank

With the advent of digitisation, the banking sector has seen a tremendous transition in recent years. Customers now have faster, more practical ways to handle their money. This is thanks to online banking, which has become a key component of the financial landscape. Small enterprises have been greatly influenced by the digitisation of the banking sector. Owing to online banking, MSMEs are now enjoying access to a variety of financial services that might have been previously out of their financial grasp. Now, an online current account coexists with a traditional current account.  

This blog will cover the features and benefits of traditional and online current accounts.  

Traditional banking: Key features and benefits  

Traditional banking refers to the standard brick-and-mortar bank setting that many people are accustomed to. You go to a neighbourhood branch close to your home and either make an appointment or stand in line for your turn. If you frequently visit your bank branch, you are likely to get the chance to build a stronger connection with the bank.  

For those who are wary of online transactions, traditional banks are the go-to option. In-person visits are available with traditional banking throughout their set business hours. You can go there to conduct various financial transactions, such as opening an account, making cash deposits and withdrawals, using an ATM, sending money overseas, and more. You additionally get to access a safe deposit box where you can keep your most priceless belongings.  

Online banking: Key features and benefits 

Given its convenience and effectiveness, online banking is a persistent trend that has taken over the financial industry. It is a banking system offered by financial institutions and banks that enables you to access services such as transfers, withdrawals, bill payments, etc. on your mobile devices or computers.  

The official IndusInd Bank application for mobile banking, IndusMobile, streamlines the banking process. The app has been embedded with a variety of features and an easy-to-use interface. The following are some of the varied range of payment and banking services that the app offers:  

• Check your account balance  
• Transfer funds via NEFT, IMPS, etc.  
• Access mini statements  
• Conduct DTH or mobile recharges  
• Book fixed deposits  
• Pay credit card bills  
• Raise service requests or complaints  

Pros of traditional current accounts  

• With a current account, it is easy to manage a lot of payments methodically.  
• The amount of cheques that the account holder, business or other entity may issue is unrestricted. 
• The deposits made into a current account at the bank’s home branch do not incur any fees or charges.  
• Smooth commercial transactions are made possible by free deposits and withdrawals at any location, inward remittances, multi-location transfers, etc.  
• Direct payments to creditors are possible thanks to the availability of demand draughts and pay order services.   

Pros of online banking 

• Online banking typically provides quick and fast transactions, whether you are sending money to family and friends, or ordering something online.  
• Banks routinely send notices in advance of service outages or scheduled maintenance, allowing you to deploy several transfer strategies.  
• Contactless payments using technologies like QR codes, NFC, virtual cards, etc. are available if you have a digital current account.  
• Multiple security measures are used in online banking to guarantee that your money and personal information are always kept secure. You can add a special layer of security to your account by using two-factor authentication techniques, such as your phone password, fingerprint lock, or PINs.   

IndusInd Bank makes it simple to open a digital current account without the need for laborious paperwork. You simply require your PAN and Aadhaar details for a video KYC procedure. The 100% digital and paperless application process allows you to open an online current account from the comfort of your office.  

Additionally, the Indus Merchant Solutions portal enables businesses and professionals to conduct financial transactions online through a single platform. The app is available for download and use by anyone with an IndusInd Bank Current Account. Non-customers can register as a merchant almost instantly and open a current account online through a 100% digital process. The platform offers various features and benefits, including: 

• Keeping track of all your loans, banking and payment requirements.  
• Collecting in-store payments digitally via POS and QR code, or via PaybyLink remotely. 
• Auto-settlement of payments.  
• Digital loan applications. 

Conclusion 

The use of traditional banking is still common for business transactions. However, online banking is becoming increasingly popular due to its convenience, reliability and speed. The two banking systems have distinct purposes, therefore your decision should be based on your specific requirements. 

However, with the security and comfort that online banking offers, you should opt to open a digital current account for your business. This will save you from the hassles of visiting bank branches and focus your energy on growing your business. So, why wait any longer? Apply now to open your current account to reap the many benefits.         

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.