As most people now carry out their banking tasks online, they might not always understand all the jargon they see. Terms like ‘online banking’ and ‘digital banking’ might have come up for someone with just a minimal understanding of technology. So if you’ve heard of financial institutions like BankDIB (Digital International Bank) or Euro Exchange Bank, then you might be wondering if they fall under the digital bank category, the online bank category, or both.
Online banking and digital banking may seem the same, but they both have unique features that may be beneficial for your needs. Online banking is ideal when you have a small bank account, while digital banking is more suited to frequent transactions and larger balances. In this article, we’ll discuss this in more detail.
Online banking is a type of banking that most people use nowadays. It can also be called mobile banking and includes pretty much everything you could do without going into a physical bank. Internet banking is any form of personal banking we do on the Internet. Doing so may entail checking our balance, reading previous statements, setting up direct debits, paying bills, and transferring money to other accounts.
A lot of people have traditionally used desktop computers or laptops to do their banking. However, in recent years smartphones have advanced and there has been an increase in people using mobile apps for key banking functions.
With online banking, you can now do all sorts of things, like applying for loans, international payments, e-commerce among others.
Digital banking is a broader term that includes all forms of transactions accomplished with the aid of technology. Online banking would fall under this, so it’s reasonable to say it’s one form of digital banking. But digital banking also encompasses more than just online banking, so that can’t be the only way to be classified as a digital banker.
As cash becomes less common, digital banking is becoming the way to go. Leading to an increase in electronic payments, this system has helped people spend more time on various digital platforms that are all powered by banking.
As the world continues to evolve into a digital space, more and more tasks and activities move online. Banks and other financial institutions have made their way online as well, which means you can do many of your banking-related activities from anywhere. Digital banking refers to these types of products that enable you to work faster and become more efficient in managing your finances.
Many of the transactions we make are considered digital banking, for example book tickets for an event, pay for parking, order food or use a store’s app.
One of the most profitable areas in banking lately is around digital data. It has been shown, for example, that companies share data on customer behavior and trends because this helps them to predict what will happen in the future. This kind of information then circulates between different companies on digital markets.
Digital banking is the umbrella term by which all financial activity through technology can be referred to. This integration seems set to increase as new tech develops.
You see, digital transactions are revolutionizing the world of finance and digital banking is one of the innovations being used in this regard. Nowadays, there are many companies employing new technology in their business models for faster service delivery and better customer experience.
The Digital Transformation
Digital banking has been the focus of many banks for years now, but in recent times it has become more important because digital transformation of the bank has been a key component of success.
Although digital banking is not a new concept, this term refers to how banks are adapting to maximize their efficiency and improve their service delivery through the use of new technologies such as cloud computing and mobile apps.
A few challenges that banks face in this area are: securing customer data, implementing accessibility features for customers with disabilities and managing cybersecurity risks but further developments in technology gives them the ability to address these issues.