It is projected that over 1.7 million people in Singapore alone will be utilising digital banking solutions by 2025. People are starting to favour digital banking. However, what precisely is online banking? Should Singaporean enterprises make use of it?
Everything there is to know about digital banking solutions is covered on this page, including their description, services offered, benefits, things to think about, and Singapore’s licenced providers of these services.
What is digital banking?
Using digital technology to conduct banking instead of going to a physical branch is known as digital banking. It can involve paying bills, handling accounts, or doing internet money transfers.
Digital banks typically provide services that are comparable to those provided by traditional banks, including loans, debit and credit cards, savings and checking accounts, and bank statements. Digital banks, in contrast to traditional banks, have shifted the majority of their operations online, mostly via innovative platforms and mobile applications that are compatible with the majority of mobile devices.
Put another way, digital banks have made the switch from physical to digital banking products and services.
Digital banking vs. online banking
Although they are sometimes confused, online and digital banking are not the same. To put it simply, internet banking is a subset of digital banking as a whole.
The term “online banking” describes using internet-enabled devices to do routine chores like viewing statements, moving money, and monitoring your balance.
Alternatively, “digital banking” is a more generic term that encompasses a greater number of services enabled by advanced technology. This covers anything, from virtual assistants and financial apps to account setup and remote KYC. It provides a completely digital banking solution that includes mobile and online banking.
Digital banking vs. traditional banking
The main difference between digital and traditional banking is that the former is primarily digital.
Online banking facilities
Almost all of the goods and services offered by physical banks are also available through digital banking, which is accessible online via websites and mobile apps. The details vary depending on the provider.
The advantages of online banking
- Accessibility: Customers can access a variety of services at any moment and from any location with digital banking’s round-the-clock operations.
- Improved interest rates and fees: Digital banks are able to pass on savings to their customers in the form of greater interest rates and cheaper fees by using automation to reduce human operations and operate without the costs associated with physical branches.
- Time savings: With web installations and remote KYC procedures, digital banking eliminates the need for users to wait in line and allows them to open accounts quickly from any device that can access the internet.
- AI tailored: Several online banks employ artificial intelligence (AI) technology to tailor services, giving clients access to the most pertinent financial options and thorough spending analytics to improve their overall banking experience.
Some of the typical services are provided by online banks.
- Individual and company savings, checking, and fixed bank accounts
- Digital money transfers and deposits are examples of electronic transactions.
- Credit or debit cards can be used for online and retail transactions.
- loans for both individuals and businesses.
- financial goods.
- Additional financial web services, such as payment APIs,
Digital banks don’t provide services in person. In place of over-the-counter check deposits, they provide online alternatives for some banking functions, like mobile check deposits. However, only a few ATM systems are available, and they sometimes lack cash withdrawal capabilities.
