Deeepak Adhya: Digital banking is part of the broader context for the move to online banking, where banking services are delivered over the internet. The shift from traditional to digital banking has been gradual and remains ongoing, and is constituted by differing degrees of banking service digitization.
◾ “Digital banking” emerged with heightened consumer demands for more efficient ways to access banking records and complete financial transactions outside of local branches.
◾Digital banking is the digitization of every level, from front- to back-end, of banking.
◾The banking industry is undergoing massive digital disruption, with online deposits, mobile apps, and e-bill payments fundamentally becoming the norm.
Increased consumer demand for digital banking services has given rise to numerous technological advancements within financial institutions—with artificial intelligence (AI) at the core of these digital transformations.
Below, we break down what exactly digital banking is, how it’s evolved over time, and where the future of digital banking is headed.
| ব্যাংক, ব্যাংকার, ব্যাংকিং, অর্থনীতি ও ফাইন্যান্স বিষয়ক গুরুত্বপূর্ণ খবর, প্রতিবেদন, বিশেষ কলাম, বিনিয়োগ/ লোন, ডেবিট কার্ড, ক্রেডিট কার্ড, ফিনটেক, ব্যাংকের নিয়োগ বিজ্ঞপ্তি ও বাংলাদেশ ব্যাংকের সার্কুলারগুলোর আপডেট পেতে আমাদের অফিসিয়াল ফেসবুক পেজ 'ব্যাংকিং নিউজ', ফেসবুক গ্রুপ 'ব্যাংকিং ইনফরমেশন', 'লিংকডইন', 'টেলিগ্রাম চ্যানেল', 'ইন্সটাগ্রাম', 'টুইটার', 'ইউটিউব', 'হোয়াটসঅ্যাপ চ্যানেল' এবং 'গুগল নিউজ'-এ যুক্ত হয়ে সাথে থাকুন। |
What is digital banking & digital banking services?
Digital banking is the digitization of every level, from front- to back-end, of banking. This means that digital banks rely on artificial intelligence to automate back-end operations such as administrative tasks and data processing—which in turn alleviates pressure put on employees to complete day-to-day tasks.
Not only do digital banks allow users to make account deposits and transfers remotely; but they also provide them with the opportunity to more easily apply for loans and access personalized money management services.
Digital transformation in banking
“Digital banking” emerged with heightened consumer demands for more efficient ways to access banking records and complete financial transactions outside of local branches.
The digital banking transformation initiated with limited online banking services before advancing into a digital-only market. The digital banking transformation initiated with limited online banking services.
Online banking can be offered by both traditional banking institutions as well as tech-savvy startups, and refers to the most basic banking operations—like bill payment and account transfers. These services usually take place on a bank’s website, where customers enter specific login information to access their financial accounts.
Online banking subsequently inspired mobile banking, which offers essentially the same services but from the convenience of one’s mobile device such as a tablet or smartphone. Mobile banking refers to offering users the ability to execute routine banking tasks through mobile channels, and digital banking includes every banking feature digitally available through the internet.
While most legacy banks now offer online services, digital-only banks are developed entirely electronically. Digital-only banks don’t lean on the financial and customer support from an established physical location—instead they’re powered via digital platforms that appeal to the millennial and populations.
Digital banking industry trends
In the Evolution of the US Report, Insider Intelligence highlights how digital-only banks—also known as neobanks—are positioned to transcend traditional US banking due to their ability to meet the demands of tech-savvy consumers. There will be nearly 40 million neobank account holders by 2025.
According to the report, 89% of US respondents say they use mobile banking channels, and 70% of say mobile banking has become the primary way to access their accounts.
Digital-only banks don’t lean on the financial and customer support from an established physical location—instead they’re powered via digital platforms that appeal to the millennial and Gen Z populations.
The rise of banking-as-a-service also accounts for an increase in digital services, as more legacy banks are opening up their application programming interfaces (APIs) for fintech and third-party app development. Insider Intelligence’s Rise of Banking-as-a-Service report outlines how traditional banks are increasingly allowing third-party providers and FinTech’s to leverage their infrastructure and consumer data to develop new digital services.
Though BaaS is still in its early days, the UK has already passed BaaS and open banking regulation, and countries around the world will soon follow suit. The most innovative banks are already taking advantage of this technology, and other incumbent players are realizing they need to adopt more digital services and offerings to stay competitive in the industry—or risk getting left behind.
Digital banking providers
Here are just a few of the top digital banking companies in the financial services industry.
U.S. Bank
U.S. Bank jumped from fourth to first place in Insider Intelligence’s 2021 Mobile Banking Competitive Edge Survey as it rounded out its customer service features. Its mobile app offers some of the most sought-after features: the ability to converse with a human agent in-app and authenticate via the app when calling customer service.
Citi
Citi outstrips competitors in the digital money management category by providing five key in-app features: the abilities to view recurring charges, see a financial wellness score, get a prediction of future funds after upcoming spending and bills, view accounts at other banks, and receive personalized financial insights.
Top of Form
At this moment digital banking trend grows up gradually. But banking sector of bangladesh still not fully digitalized. as public demand. Specially the state own public bank can not satisfied the public demand as time being. Now it is the time of 4th industrial revolution so now the banking sector of bangladesh have to think newly as per time demand. online banking, internet banking, mobile banking now very familiar to our country.
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◾ Digital currency- new Banking trends
As a banker of Janata Bank Ltd. I can say that Janata Bank is still not technologically sound. Still mobile banking technology is not run into Janata Bank. So the management of Janata Bank have to think to launch mobile banking technology as per public demand and to fight the fourth industrial revolution.
Writer: Deeepak Adhya; Banker of Janata Bank Ltd.
