Digital banking refers to the use of technology in delivering banking services to customers through electronic channels. This type of banking can be performed on computers, smartphones, tablets or other digital devices, making it accessible from anywhere, at any time. With digital banking, customers can perform a wide range of banking transactions, from checking account balances to transferring funds, paying bills and applying for loans, all from the comfort of their homes.

Digital banking is changing the way people bank and is becoming increasingly popular due to its convenience and ease of use. Many banks have been quick to adopt digital banking services and have implemented various technological solutions to meet the needs of their customers. These solutions include online banking, mobile banking, and various other digital channels.

1. Online Banking

Online banking is one of the earliest forms of digital banking. It allows customers to access their accounts through the internet and perform transactions such as checking account balances, viewing transaction history, paying bills, and transferring funds. Online banking is a secure and convenient way to perform transactions and monitor financial activities.

2. Mobile Banking

Mobile banking is a type of digital banking that is performed on mobile devices such as smartphones and tablets. With mobile banking, customers can perform the same transactions as they would with online banking but in a more convenient and portable way. Mobile banking has become increasingly popular due to the rise of smartphones and the convenience they offer. With mobile banking, customers can perform transactions at any time, from anywhere, making it ideal for people who are always on the go. E.g. yoga mats, supply chain, etc.

3. Social Media Banking

Social media banking is a new and innovative form of digital banking that uses social media platforms such as Facebook, Twitter and LinkedIn to deliver banking services. This type of banking allows customers to perform transactions and interact with their bank in real-time, through social media channels. For example, customers can transfer funds, pay bills and check account balances, all through a secure messaging platform. Social media banking is still in its infancy but has the potential to revolutionize the way people bank.

4. Payment Systems

Digital banking has also led to the development of various payment systems that allow customers to transfer funds, pay bills and make payments to merchants. Some of these systems include digital wallets, mobile payments, and peer-to-peer (P2P) payment systems.

5. Digital Wallets

A digital wallet is a digital version of a physical wallet and allows customers to store and manage their payment information in one place. Digital wallets can be linked to credit cards, debit cards, and bank accounts, and can be used to make payments at retail stores, online and through mobile devices. Some digital wallets also offer the ability to store loyalty cards, coupons, and other forms of payment.

6. Mobile Payments

Mobile payments refer to payments made through a mobile device, such as a smartphone or tablet. This type of payment is becoming increasingly popular due to the rise of mobile banking and the increasing use of mobile devices. With mobile payments, customers can make payments in-store, online, or through a mobile app, using their mobile device. This type of payment is fast, secure, and convenient, and has the potential to replace traditional payment methods such as cash and credit cards.

7. Peer-to-Peer (P2P) Payment Systems

Peer-to-peer payment systems are digital platforms that allow individuals to transfer funds directly to one another, without the need for a financial institution. These systems are often free and allow customers to send money to anyone, anywhere, with just an email address or mobile number. P2P payment systems are becoming increasingly popular, especially among younger generations, as they offer a quick and convenient way to transfer funds to friends and family.

Source: TransferXO