Difference Between Digital Banking, Mobile Banking and Online Banking
Large parts of banking business today are based on the use of technology. Banking is an information-intensive industry and an early adopter of information technology (IT). Over the years, banking/financial functions have been virtualized on a huge scale. There is a shift from physical money to electronic payments, and the replacement of branch service advisors, share certificates, and savings books, with online, digital alternatives. Digital banking, Mobile banking and internet banking and always referred to as same thing with a different word. It is not actually so. Read the difference below.
Digital Banking is trending in the banking sector. With the arrival of digitized banking, customers can now perform lots of banking transactions without having to step into a physical bank, for instance, money deposits and transfers. It is not just about banking using the internet but is also about keeping the interests of customers first and also minimizing the cost associated with banking. The major motive of Digital Banking is to be more customer-centric. The main worry with digital banking is safety. Every person wants a safe banking experience. Digital banking narrowly limits service-oriented models delivered over the Web, which aim at serving both banks and consumers as a means of providing a convenient, faster and better experience than conventional banking. Enabling rapid digitization, aimed at delighting customers is a key aspect for banks looking to differentiate themselves in today’s crowded marketplace. This type of platform involves the use of technology to make sure flawless end-to-end processing of banking transactions/operations; started by the client, ensuring maximum use; to the client in terms of availability, convenience and cost; to the bank in terms of reduced operating costs, zero errors and better services. nigeria’s Digital bank is ALAT click here to learn more.
Mobile banking refers to the use of a Smartphone or other cellular device to perform online financial activities while away from your home computer, such tasks includes monitoring account balances, transferring funds between accounts, bill payment and locating an ATM. It uses software, usually called an app, provided by the bank for the purpose. Mobile banking is usually available on a 24/7 basis. Some financial institutions have restrictions on which accounts may be accessed through mobile banking, as well as a limit on the amount that can be transacted.
Transactions through mobile banking may include obtaining account balances and lists of latest transactions, electronic bill payments, and funds transfers between a customer’s or another’s accounts. Some apps also enable copies of statements to be downloaded and sometimes printed at the customer’s premises; and some banks charge a fee for mailing hardcopies of bank statements
Mobile banking applications for Android, iPhone, connect the client directly to the bank server for complete banking functionality without having to navigate a mobile web browser. These applications can be downloaded either through the bank’s website or through various app stores.
Mobile banking is very handy in today’s digital age with many banks offering impressive apps. The ability to pay merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking. However, establishing a secure connection before logging into a mobile banking app is vital or else a user might risk his personal information being compromised.
The first mobile banking services were offered over SMS, but with the introduction of smart phones, mobile banking is now primarily offered through applications as opposed to through text messages or even a mobile browser.
Online banking, also known as e banking, internet banking or virtual banking, is an electronic payment system that enables customers of a bank to conduct a range of financial activities through the bank’s website. The online banking system will connect to or be part of the core banking system operated by a bank. Most financial institutions offer customers the option of online banking. They set up security systems to make sure that transactions conducted online are protected from internet security threats.
To gain access into financial institution’s online banking facility, a user with internet access will need to register with the bank for the service, and set up a password and other credentials for customer verification. The credentials for online banking are usually not the same as for mobile banking. Financial institutions now regularly allocate customers numbers, whether or not clients have showed intention to access their online banking profile. Customer numbers are normally not the same as account numbers. The customer visits the financial institution’s secure website, and enters the online banking facility using the customer number and credentials previously set up. The types of financial transactions which a customer may transact through online banking are determined by the financial institution, but usually includes obtaining account balances, a list of the recent transactions, electronic bill payments and funds transfers between a customer’s or another’s accounts.
Banks have set up security systems to ensure that transactions conducted online are protected from internet security threats. Most banks use an industry-standard Secure Transaction software and protocol to manage the security on their systems.