The Different Types of Digital Banking Account Options and How to Choose? Digital Banking is the automation of traditional banking systems. This banking system enables a bank’s customers to access banking products and services via an electronic or online platform.
Digital banking systems have emerged as the solutions that assist banks to compete in the digital era with a sustainable and holistic approach.
The Different Types of Digital Banking Account Options and How to Choose
A digital bank is a bank that operates online and offers its customers services that were previously available only at a bank branch. However, this banking service digitizes all of the banking operations, thereby substituting the bank’s physical presence with an everlasting online presence, eliminating a consumer’s need to visit a branch.
What is Digital Banking?
Digital banking has to do with the digitization of all traditional banking products, processes, and activities to serve customers through online channels.
Digital Banking Services
Most frequently, they include the following operations and activities:
- Checking and savings account management
- Opening deposit accounts
- Loan management
- Obtaining bank statements
- Cash withdrawals
- Funds transfers
- Bill payments
- Cheques management
- Transaction record monitoring
Digital banking software makes all traditional services easier to access, understand, and manage.
Types of Digital Banking Solutions
Here are different types of digital banking systems:
Core Banking: Core banking is a type of banking system offered by a networked group of bank branches where customers can view their bank accounts from any of the group of branch offices. Core banking services are as follows: floating new accounts, servicing loans, calculating interest, processing deposits and withdrawals, and customer relationship management activities.
Mobile Banking: This type of banking offers mobile banking so customers can remotely access their accounts and conduct other financial transactions via a mobile device or tablet.
Internet Banking: Just like mobile banking, customers can have access to their bank via the bank’s website and conduct transactions. Although both platforms are similar to those used in digital banking, online banking heavily depends on the internet more than mobile banking.
Doorstep Banking: Doorstep Banking, or DSB, is a service that provides customers with cash deposits, withdrawals, check deposits, or demand drafts. This can all be done via a facility offered by your bank, as it can save you from making a trip to one of the local branches to conduct routine banking activities.
How To Choose A Digital Banking Platform
Choosing the best digital banking platform for your business depends on a combination of certain factors, including, the bank’s digital strategy, technical readiness, and budget, vendor criteria, such as the global and local experience of the vendor, the proposed implementation time, the vendor’s product strategy and roadmap, etc.
Fast time to market with digital initiatives
A best-in-class digital banking platform should give you the speed to respond to ever-changing customer needs. A platform should enable the fast creation of more complex digital banking solutions, like mobile wallets, end-to-end self-service digital channels, and more.
Out-of-the-shelf but configurable digital banking capabilities
Off-the-shelf digital banking capabilities accelerate time to market for digital projects and provide you with the best practices coming from the vendor’s experience.
Choosing a highly configurable digital banking system will empower your bank to follow its own digital agenda while avoiding any risky disruption of internal business processes.
Omni-channel Customer Experience
An omnichannel platform allows for the centralized orchestration of customer interactions across multiple touch points, following the principle of creating once, and distributed anywhere. It is the central hub from which and to which customer data flow, offering a 360-degree view of the customer. So, omnichannel customer experience is, therefore, another major enabler to be supported by your digital banking platform.
Future-proof Microservice Architecture
Microservice architecture plays a major role in the business of digital banking because it adds flexibility to a bank’s digital transformation journey.
However, a digital banking platform with a microservice architecture will allow the continuous delivery of software applications regardless of the size and complexity of the project. This helps an organization to quickly innovate on its technology stack, easily scale vertically and horizontally, and strategically extend the platform using modular building blocks.
Open Banking
In an open banking world, plug-and-play financial products are enabled, and customers have the final word, selecting the superior experience. So, when deciding on a digital banking platform, take into account your open banking strategy.
However, in terms of capabilities, this would mean having a platform that gets you ready for the API economy with functionalities like an API gateway and API management, a developer portal and sandbox, strong customer authentication, PSD2 compliance, consent management, and more.
Moreover, your digital banking platform should enable you to easily integrate with other banks and ecosystem partners to offer value-adding services to your customers through open APIs.
Enterprise integration
A digital banking service shouldn’t turn into the next legacy technology in your IT landscape. Rather, it should seamlessly integrate with your core banking system and with your other existing and future systems, modernizing your infrastructure.
Moreover, a robust integration framework is a key advantage of a digital banking platform, enabling process, channel, and system integrations, unified customer data, central monitoring, business continuity, IT asset reusability, and more.
What are the Types of Digital Banking?
Below are the types of digital payment methods in India.
- Banking cards
- USSD
- Aadhaar Enabled Payment System (AEPS)
- UPI
- Mobile Wallets
- Bank pre-paid cards.
- Point of Sale (POS)
- Internet Banking
What are the Seven Things to consider when choosing a bank?
Here are seven factors to consider when choosing a bank:
- Scope Security When Choosing a Bank
- Do They Have the Account You’re Looking For?
- Hidden Fees, Annual Fees, Transfer Fees
- Varying Interest Rates
- Cash Limits
- Online Banking
- Honesty
What are the five most important Banking Services?
The five most important banking services are
- Checking and savings accounts
- Loan and mortgage services
- Wealth management
- Providing credit and debit cards
- Overdraft services
