Digital banking is the digitalization of banking services in order to reduce risk, improve efficiency and better serve customers. It allows customers to withdraw money, apply for loans, make payments online or on their smartphone and more. Looking to the future of banking, digital is no longer an option for firms who wish to survive - it is a must.
When it comes to retail banks (rather than corporate or investment banks) going digital, there are two elements: digitization and digitalization. “Digitizing means converting into digital format anything which is currently manual or paper-based,” says Simon Paris, chief executive officer of fintech company Finastra. “Whereas digitalizing is a whole new way of thinking.”
Once digitization is complete, banks can start exploring revolutionary business processes which were not available to them before, from iris recognition to artificial intelligence to offer superior banking services.