A Comparison Between Digital And Online Banking

With digitalization having revolutionized the banking industry, all banks have begun to offer e-banking services as an additional or alternative service to their customers. But, online banking and digital banking are not the same things; in fact, they are quite different. In this article, we explore the differences between digital banking and online banking.

What Is Online Banking?

Online banking is a service that helps you process core banking transactions through your desktop computer, laptop, or smartphone, instead of having to visit the bank branch itself. Online banking helps you perform the following activities with just a few swipes on your smartphone or laptop

Transferring money to family and friends

Setting up and canceling direct debits

Paying bills

Checking your account balance and notifying the bank in case of mistakes

Moving your money from one account to the other.

Transferring money internationally

What Is Digital Banking?

So, now that you know what online banking is, you are probably wondering how it is different from digital banking. We’ll tell you. While online banking is an additional service offered by traditional banks, digital banking is the future and mandates the comprehensive re-engineering of a financial institution’s internal systems. By embracing digital banking technologies, financial institutions can benefit in a number of ways, including

Reduced overheads: Switching to digital banking eliminates the need for companies to invest in expensive hardware and software that ensures all systems used are up-to-date at all times.

Increased sales: Digital banking helps financial institutions tap into the psyche of their account holders and offer the right products and services to them.

Enhanced customer experience: New technologies allow banks to offer a much better customer experience, helping them retain existing customers and attract new ones.

Maintaining compliance: Digital banking makes it easier for banks and financial institutions to stay compliant with new regulations and provide increased security to account holders.

Although the terms, online banking and digital banking, are used interchangeably, the former refers to a service that financial institutions offer, while the latter refers to a complete transformation in the way the financial institution operates.