Digital banking is the
digitization (or moving online) of all the traditional banking activities and
programs that historically were only available to customers when physically
inside of a bank branch. This includes activities like: i)Money Deposits, Withdrawals,
and Transfers, ii)Checking/Saving
Account, iii)Management, iv)Applying
for Financial Products, v)Bill Pay, vi)Account Services,vii)Loan Management.
Between 2017 and 2018
there was a 24% increase in digital transactions, with more than two-thirds of
millennials in the US using their smartphone as a wallet. This is creating an
environment where traditional financial institutions are implementing
innovative digital banking solutions, while start-ups grow at a rapid rate due
to the demand from venture capitalists to invest in fintech.
online banking primarily focuses on remote deposits,
money transfers, bill pay, and basic online management of accounts. Other
synonyms for online banking include internet banking, virtual banking, and
e-banking. So, online banking focuses on digitizing the “core” aspects of
banking, but digital banking encompasses digitizing every program and activity
undertaken by financial institutions and their customers.
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