An Emerging Trend: Digital Mobile Banking
Digital and mobile banking are opening new worlds of service for clients and new opportunities to create advantages for institutions. Customers access their accounts and apply for loans or other forms of credit without stepping through a traditional, brick-and-mortar location. More financial institutions aim to automate loan processes and engage with Millennial customers, who live in an increasingly mobile world. Before jumping into a discussion of digital mobile banking trends, let’s first be clear on terminology.
Digital Mobile Banking Terminology
- Online Banking - According to Nnamdi Azodo, Product Owner at ALAT Digital Bank, “Online Banking is a service that allows customers of a bank (or other financial institution) to carry out basic banking transactions over the internet, usually on the bank’s website.” Examples of common online banking functionality include account management, electronic bill pay and electronic funds transfer.
- Mobile Banking - Mobile banking is an extension of online banking where banking transactions are completed on a phone or tablet form factor. Generally, customers conduct mobile via an app. Customers access online banking via laptop with a secure connection to the bank’s website.
- Digital Banking - The application of technology to all banking activities, processes, and programs that provides a simple and elegant customer experience. One benchmark for a successful digital banking initiative is whether the customer can successfully avoid presenting themselves at a physical bank location.
Why Digital Banking?
According to , Director of Citaden Advantage LTD, there are a number of good business reasons for adopting digital banking. There are good reasons for both banks and their customers to embrace digital trends.
