What is the Difference between Green Banking and Digital Banking

Green Banking - An Overview 

A green banking system is different from traditional banking. It is any concept of promoting sustainable development in a country.

Green Banking is a new phenomenon in the financial world concentrated on environment and social responsible investing.

Green Banking is also called Ethical or Sustainable Banking.

It encourages banks to carried out environmental-friendly investment by combining its operational improvements and technological developments. 

Do we need a Green Banking System?

Yes, because green banking system if the household are able to switch to paperless bank building this would save an estimated of 1 crore 65 lakh per year or about 46,000 of acres of forest, 3,96,000 tons of carbon dioxide a year and 4 lakh 95 thousands of tons of air pollution per year and gain almost 21 lakhs 45,000 tons of oxygen per year.

What are the going Green Initiatives?

The Green Banking has:

• Green Deposits 
• Green Markets and Loans 
• Green Credit Cards 
• Mobile Banking 
• Online Banking

Benefits of Green Banking Systems 

1. Basically the green making is the main intention is the reduction of paper working Bank. Less paper worse it's to less cutting of trees.

2. Creating awareness for the bank as well as the customers about the environment and social responsibility. 

3. Under Green making it provide a loan for eco-friendly activity and interest is compared to less than the normal bank.

4. Green Banking provides rewards to customers if they are contributing to environmentally friendly and non-for-profit organizations. 

5. Free electronic bill payment services 

6. Green banking follows environmental standards for lending purposes.

7. Free online account opening for opening Green Bank opens.

Challenges of Green Banking System

1. Diversification Problems 

Green banking is restricting their business transaction to those business entities who qualify screening processes done by Green Banks with limited number of customers they will have a small smaller base to support them.

2. Startup Phase 

Many banks in Green Bank in green businesses are very new and are in the startup phase generally it takes three to four years for a bank to start making money thus it does not help to bank during the recession.

3. Credit operating / High operating cost

Green Banks requires talented and experienced staffs to provide proper services to customer experiences loan officers and needed or needed.

They give additional experience in dealing with green businesses and customers. 

4. Reputation Risk 

Green bank required talented and experienced tasks to provide a proper service to customer.

Experience alone officers are needed.

They give additional experience in dealing with the green business and the customer.

5. Credit Risk 

Credit risk arises due to lending to those customers those businesses are affected by the cost of pollution changing the environmental regulations and new requirements of emission level.

Research Objectives

1. Studying the existing greenbacks green mending initiatives.

2. Studying the issues and challenges are facing during the adoption of green banking systems in the bank.

3. To understand the examine the green banking processes in the banks

4. To elicit the earth role of green banking in sustainable development at an economy

Conclusion:

Green Banking is one of the important concepts for the banking sector and the economy because it helps reduces carbon footprints and conserve natural resources and protect the environment.

DIGITAL BANKING - Explanation

What is basically Digital Banking?

Digital Banking is part of the broader context for the move to online banking where banking services are delivered over the Internet.

If you just imagine 15 or 20 years back we had to go to the bank and wait in line to get some cash from from your own account.

So you have to write a cheque and you have to wait in line at the branch so that you can get cash from the counter. So it uses to take 30 to 1 Hour every time for the same job.

Around 15 to 20 years back the ATMs machines were not so much popular also not so much available at every location.

For every information or updating any services, you needed to go to the bank to get it from the Staff.

For example, you have to get the bank statement, for depositing cheque, for getting information about loans and investments. So for all these, you had to go to the bank at any cost.

Now things are changed. Everything now becomes available online. You don't need to go to the bank for everything. Most of the things are available online. 

Let's discuss that how things are available online

ATM

ATMs are available. If you want to withdraw cash, you just need to go to any ATM machine and you can get the amount of cash from the ATM through a debit card.

Internet Banking

Similarly internet banking is available. Internet banking means that everything like for example you need to get an account a statement, have to transfer amount from one account to another, you can do it from internet banking, you need to get your balance of account you can get it from internet banking.

Bank Websites

Bank websites are available you want to get information about Investment, Financial planning, Calculator, etc. All these things are available on bank's website you just need to go at bank's website and you get this information. 

Mobile Apps

You can just easily download the app of your bank's website and you can do the fund transfer, and all other services at ease.

Digital Wallets

Digital Wallets can help you in many ways. Like you have to do the grocery, purchasing of online tickets, etc. You have to transfer money from your bank account to your digital wallet and then you can easily purchase the things.

E Vouchers

E-vouchers are available - These vouchers you can redeem it on any website you can get discounts you can purchase things using the voucher.