Now that we have established the basics of digital banking in the previous blog Digital Banking Platforms-A New and Rising Trend in Industry. The situations which lead to the development of the platform and the nature of the same. Along with Digital banking there comes another term- Online banking.
Often under various circumstances, there comes a slight bit of confusion about Online and Digital Banking. In certain incidents, these two terms have also been used interchangeably as well. But the question to think is, are the two same?
Both Online and Digital banking have gained some limelight in a short period and are excelling as well. To clear up the confusion, both the terms seem to be similar due to the obvious confusing being that isn’t digital and online the same thing only. However, there is a significant difference between the two and the differences will be stated moving on.
The reason for this confusion is the fact that to some, digital and online are just synonyms for each other, as it happens in layman’s terminology, but technically there is a difference.
Online banking deals with your daily updates of banking such as fund transfers, balance inquiries, or reviewing transactions. These functions represent the core of the banking functions which are now shifted online.
However, Digital banking differs from online banking by aiming to digitize all the processes of banking, be it core or non-core functions. It consists of onboarding a client by opening an account to the closure of the bank account, all the aspects have been digitized. The basic aim of this approach has been to minimize the need for a customer to visit a branch of a bank, physically.
In other terms, online banking could also be classified as a subset of digital banking and not similar. With the clarification being done, stating that both are an essential part of the banking and not one can be overlooked for any reason. The necessity of both the forms remains and need not be changed by anything.
With Online banking being a subset of Digital banking, it cannot be stated that one is much more important than the other. Both forms of banking play an equal role in the banking industry and are equally required for the seamless and efficient working of the banking model.