The future of Banking is entirely digital

The unanticipated global pandemic caused a shift to the digital era for all kinds of businesses. Banking is no exception. In the last few years, the number of consumers visiting a bank branch for banking services has dwindled quite a bit. In this article, let’s reflect a bit on how digital banking is revolutionizing the banking industry.

When one considers the digitalisation of global banking infrastructure, a terminology that comes first into mind – “online banking”. How is it different from digital banking? People sometimes use words a bit loosely without clearly understanding their meaning. This is why many people confuse digital banking and online banking.

In reality, they are two separate concepts. In case of online banking, the core aspects of a bank are made available online. These include deposits, withdrawals, fund transfers, and bill payments. But for anything more than this, you have to visit a branch. Hence, online banking is a technology that goes hand-in-hand with branch-based banking.

In the case of digital banking, the entire banking service is made available through the internet. You can access the digital bank through an app or its website. All operations that a consumer avails through a traditional bank branch can be availed through the app. It embraces automated processing of requests from consumers and removes the hassle of paperwork completely.

In digital banking, high-level of process automation is present and includes application programming interfaces (APIs) for cross-institutional services. Financial data can be accessed through desktops, mobile phones, or ATMs.