21-23 MAY 2019
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What is the difference between online banking and digital banking?

What is the difference between online banking and digital banking?

You may be forgiven for thinking that online and digital banking are the same. However, there is a difference and you need to know about it.

The customer and digital banking

Online banking has become very comfortable recently. We are often given the option to manage all our transactions online, without ever having to step foot into a bank. Digital banking is taking this one step further. Their ultimate focus is on the customer and their developing digital banking needs. This focus mainly revolves around convenience and user-friendliness. How many times have you tried to manage your banking online and been confronted with confusing links? Or you simply cannot find the information that you need? Digital banking aims to change all that.

The banking system as we know it is undergoing some dramatic changes. Managing and maintaining online banking can be problematic and is often reliant on highly skilled staff. The online banking app has it´s limitations. For example, you cannot apply for a mortgage or high-value loans online. The initial application can be completed, but you must present yourself and all relevant paperwork at the branch for your request to be completed. Therefore, online banking has often been used to supplement your physical banking needs. It is not an alternative or a substitute, but merely an aid.

Here in lies the key difference between online and digital banking. The entire banking process is online and begins online. No online assistance is needed, as the entire banking system is digitalised.

Digital banking and the future

Digital banking is largely built by IT experts, not financial experts. Therefore, the entire interface is designed specifically for user convenience and flexibility. The customer remains in sight, so digital banking quickly evolves to their needs as they occur. The bank does not have to solely be digital, it can also have a physical branch, but their services can be managed entirely online. The application is easy to use, has all the information a customer may need and changes according to needs.

Digital banking has seen the gap in the market and moved quickly to fill it. The traditional, stuffy image of the bank no longer caters to people´s requirements. This is what online banking aims to achieve.

Where will that take us in the future? Many digital banks are now trying to implement easier payment facilities. You can also chat with an assistant in real time. This is something that online banking has tried to implement, but many answers to enquiries require a trip to the branch. Digital banking hopes to eliminate this. The future may see digital banks team up with social media and instant messaging services to send money quickly. This will capitalise on the fast-paced world of instant communication that we now live in. Whilst many older users may still prefer to talk to someone flesh and blood, digital banks are cashing in on young users. The world is lived through a mobile phone screen, so why not your banking?

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