Digital Banking Platforms Overview
What are Digital Banking Platforms?
Digital Banking Platforms are financial services that are provided solely online as opposed to online banking that refers to online components to banking systems that also have brick-and-mortar operations (also known as traditional banking). Digital banking relies on process automation and web-based services. In some cases, digital banking platforms also allow for cross-institutional It offers the ability for users to access financial data through desktop, mobile, and ATM services.
Digital Banking Features & Capabilities
The banking features common to most products in this category are as follows:
- Standard checking and savings account with competitive interest rates to traditional banking
- Mobile apps
- Real-time transaction alerts
- Digital wallets (cardless/checkless payment systems)
- Person-to-person payments
- Remote deposit
- Financial management tools
- Deposit insurance
- Free ATM transactions with participating sister branches
- Data encryption and compliance with international security regulations
Digital Banking Platform Comparison
When on the market for a digital banking platform, consider these key characteristics when making your shortlist:
- Futureproof: Look for a digital banking platform with an emphasis on adapting to the quickly changing landscape of digital banking. This ensures you won't have to switch platforms as new features and capabilities come along.
- Security: This may seem like a no-brainer, but ensure your digital banking platform has a reputation for being a secure choice. Make sure certifications are easily found on its main website and that said certifications are from reputable organizations.
- Customer service: Given that you won't be able to speak with representatives face-to-face as with traditional banking, make sure your digital banking platform has a strong customer service component. While many of these platforms are designed for self-service, you may still run into some issues, or simply have some questions, that you'll want to be addressed quickly and easily. Customer service contact information should be posted prominently and made easy for you to access.
- Integrations: Your digital banking platform should have integration with other third-party finance apps such as digital wallets or even your other financial institutions. Open banking is becoming more common and is a great way to manage your finances across accounts.
As with traditional banking, personal digital banking accounts can be opened for free with no fees. Business accounts can also be opened for free without any annual fees as well, which is a major draw of this category. However, in some cases, for premium features such as financial management and reporting or analysis, there may be associated fees.