It is a reality that the Covid epidemic has kept many consumers away from banks for a very long time. With the development of digitization throughout the epidemic, most consumers like to do these virtually.
However, there remains confusion among the users about whether online banking and digital banking are the same or not. You will find your answer in the following part if you are also going through the same confusion.
Online banking vs. digital banking
People often utter the term interchangeably. However, both are not the same. Below we’ve discussed them in detail and highlighted the difference between them.
What is Online banking?
When banks first began using the internet to run their banking operations in the digital world, online banking started taking over.
Users can get help from online banking to access their bank accounts from any internet-connected device. It includes reviewing accounts and balances, adding beneficiaries, sending money online, paying bills, etc.
Safety
Your login information and an OTP will be provided by net banking. It ensures two-factor authentication of your online bank accounts.
Technology
A framework is more or less constant in internet banking. The user interface is quite simple, yet it is not mobile-friendly sometimes. Online banking uses technology so to enhance the customer experience.
Effect on banks
The initial investment is not much necessary for online banking. As many consumers no longer visit physical banks, the demand for physical branches also gets reduced.
Effect on customers
The users can do their regular financial activities without going to banks only with the help of online banking.
What is digital banking?
It is essentially a significant transformation of the banking sector. It is an inclusive system that uses digital technology to improve both the front-end and back-end banking processes as well as its efficiency, speed, and accuracy.
It has a variety of interfaces and technologies that support enhanced automation which helps the banks to improve their systems and service. It works much better when combined with AI and machine learning, which gives it a smoother access experience.
Eventually, digital banking promises less dependency on it by digitally replicating old-style banking. It has come a long way in enabling e-KYC procedures and improving ATM experiences.
Security
Security protections are more protected making transactions in digital banking. This is because they want to protect your sensitive information in banking apps for digital banking.
Extra biometric and password authentication levels are applied throughout your digital banking transaction to keep that information safer.
Technology
Blockchain, cloud computing, artificial intelligence, robots, and other cutting-edge technology are used in digital banking. These help to expand the service they are offering to you.
These developments in banking technology allow you to set up and manage a digital savings account entirely just with your smartphone.
Effect on banks
Although digital banking needs a larger investment, it has the potential to change the job market in the banking sector drastically. Digitalized banks will need lesser employees and clerks, but they will need more IT experts.
Effect on customers
Personalization techniques in digital banking allow the mapping of consumer preferences. It also helps to include tools like chatbots and online help, and these qualities eventually boost client satisfaction in banking services.
Digital banking: the future of banking
The future of banking is undoubtedly digital banking. The traditional banks need to adapt to this and turn their current banking systems and applications into digital banking sectors. Otherwise, they will gradually lose their users.
Digital banks have been experiencing a sharp increase in their customer base as the number of users has increased every other day. This increasing trend won’t stop anymore since the Covid epidemic has already boosted it a lot.
How would I find a good bank?
Finding a solid bank is easier than you might think. Here are a few criteria that you need to look at while choosing a banking system:
- Simple application procedure
- Fast approval
- Free withdrawals at ATMs
- Analytics and budgeting
- High-interest rate
- A user-friendly mobile app
Conclusion
You can’t deny that there are a lot of advantages to digital banking. But it’s important to remember that every one of us is different and that we all grow differently. So, The banks need to advance according to users’ needs which will only increase their revenue gradually.
