- Digital banking products refer to a diverse array of financial services, tools, and solutions delivered through digital channels such as websites, mobile applications, and online platforms.
- These products offer customers unprecedented convenience, accessibility, and flexibility by enabling them to conduct banking transactions and manage their finances remotely, at any time and from anywhere with an internet connection.
- Digital banking products encompass a wide range of services and solutions designed to meet the financial needs of customers in a digital environment.
Digital banking products serve several purposes, catering to the needs and preferences of both customers and financial institutions.
They serve as essential tools for modernising the banking experience, delivering convenience, accessibility, efficiency, innovation, and security to customers while enabling banks to stay competitive and agile in a rapidly evolving landscape.
What are digital banking products?
Digital banking products offer unparalleled convenience by allowing customers to access their accounts, perform transactions, and manage their finances anytime, anywhere, using internet-enabled devices such as computers, smartphones, and tablets.
These products enhance access to banking services, particularly for individuals who may have limited mobility or live in remote areas where physical bank branches are scarce. Digital banking bridges the gap, enabling customers to conduct financial transactions without the need to visit a brick-and-mortar branch.
Digital banking streamlines banking processes, reducing the time and effort required for tasks such as transferring funds, paying bills, depositing checks, and applying for loans. Automated features and self-service options enhance operational efficiency for both customers and financial institutions.
And by leveraging digital channels, banks can significantly reduce operational costs associated with maintaining physical branches, such as rent, utilities, and staffing. This cost savings can be passed on to customers in the form of lower fees and better interest rates.
In other hand, digital banking products drive innovation in the financial industry by introducing new technologies, features, and services that enhance the customer experience. These innovations may include biometric authentication, artificial intelligence-powered chatbots, personalised financial management tools, and blockchain-based solutions.
Digital banking products provide opportunities for banks to engage with customers in meaningful ways, such as offering personalised recommendations, targeted promotions, and educational resources. Enhanced customer engagement fosters loyalty and strengthens the bank-customer relationship.
Also read: Blockchain in banking – key opportunities and challenges
Examples of products
Online banking
Web-based platforms that allow customers to access their accounts, view balances, transfer funds, pay bills, and perform various transactions remotely.
Mobile banking apps
Smartphone and tablet applications provided by banks that offer similar functionalities to online banking, optimised for mobile devices. They often include additional features such as mobile check deposit and biometric authentication.
Digital wallets
Applications or platforms that enable users to store payment card information securely and make contactless payments in-store, online, or through mobile devices. Examples include Apple Pay, Google Pay, and Samsung Pay.
Also read: Thailand’s KBank to reduce interest rate, supporting vulnerable customers
Peer-to-peer (P2P) payment services
Platforms that facilitate the transfer of funds between individuals electronically. Users can send money to friends, family, or businesses using email addresses, phone numbers, or social media accounts. Examples include Venmo, PayPal, and Cash App.
Mobile check deposit
Allows customers to deposit checks into their bank accounts using their mobile devices by taking a picture of the front and back of the check.
Automated savings apps
Apps that help users save money automatically by rounding up purchases to the nearest dollar and transferring the difference to a savings account or investment account. Examples include Acorns and Digit.
Robo-advisors
Automated investment platforms that use algorithms to provide personalised investment advice and manage portfolios for customers based on their financial goals and risk tolerance. Examples include Betterment and Wealthfront.
