Today’s generation is growing up with smart devices and convenient digital services. Similarly, these technologies are being used in almost all types of businesses.
Undoubtedly, finance is a vital part of every business. Even this sector is also using different technologies for making their tasks very easy. This is where digital financial services are innovated.
So what is digital financial service and how they come into play? Keep reading the article to know in detail with other additional information.
What is Digital Financial Service?
Digital financial services are basically a broad range of services that are conducted through digital channels. Here, digital media means mobile, internet, ATM (automated teller machine), and digital services are payments, credits, savings, remittances, insurances, etc.
Almost everything related to finance is possible to include in digital financial services, more precisely in a mobile device. MFS (mobile financial services) refers to providing digital financial services which is also digital money management through mobile, including M-banking, M-money, M-payment, and so on.
If we think globally about digital financial services, it dramatically impacts our day-to-day life and our businesses. For example, people can now check their bank statements easily on their mobile phones.
Example:
In a country like Bangladesh, there is a renowned digital financial service named Nagad conducted by Bangladesh’s post office. It allows five times greater transactions than the other MSF(mobile financial services) of Bangladesh.
Besides Nagad, there are some other digital financial services like Bkash, i-pay, Nexus pay, etc. For having these kinds of services in a country, we don’t need to carry cash nowadays. We all have digital money, and we can use it anywhere we want.
Why Digital Financial Services?
There have a lot of advantages to these digital services. Here we are providing you some of them. These are as follows:
Cost reduction:
Any company conducts many transactions every month, and there has a significant amount of cost per transaction. Digital financial services reduce that cost at a significant level.
If we think about personal transactions, then we have to say it has changed everything. Now you don’t need to move anywhere to send money. You can send any amount of money from anywhere to anywhere in the world in the world.
Revenue growth:
By having digital financial services, companies can reach new market segments and serve new products that increase their revenue at a significant level.
Increase service quality:
Digital financial services help every company to improve the quality of their services. People can buy anything from anywhere in the world by this service nowadays.
Reach a larger quantity of audience:
It also helps a business to reach a larger quantity of audiences by the online business like Alibaba, Amazon, etc.
The advantages of digital financial services are huge in number. You can obviously feel it no matter wherever you are. Here we have given some of them in the view of a business.
Conclusion
Digital financial services, also known as FinTech, are becoming very popular, and we have become very dependent on them. Millions of people using this service to meet their daily needs. We can pay any bill, send money anywhere and have all the bank’s services by a cellphone.
Anyway, these are mainly the most important thing about digital financial services. If you need any other things to know, you can ask it in the comment section.