Different Ways to Banking – Digital, Online, Internet, Mobile Banking, Neo, e-banking
- By : Vandanaa A Kaul
- Category : Digital Banking, Finance, Financial Inclusion, FinTech, Internet Banking, Mobile Banking, Online Banking, Open Banking, Rural Banking
- Tags: Challenger bank, Digitalbanking, Finx, internet banking, MirchiLove, Mobile Banking, Neo bank, OnlineBanking, Open banking, Teknospire
Editor’s Note : This post was originally published in [January, 2019] and has been updated for freshness, accuracy and comprehensiveness.
What is Online Banking
Accessing Banking services via internet
Also Called Internet Banking or Web Banking
Conducting financial and non-financial transactions via web interface or a smartphone
Ability to access all financial information of your bank on your computer or mobile
What is Digital Banking
Banking services delivered over internet
Digitization of traditional banking activities and programs
In technical terms, full digital transformation of front-end, back-end , data collection and everything
What is Internet Banking
Facility to a customer to transact/access financial data via a net banking account
Internet banking is same as Online banking
Manage your money online via internet.
What is Mobile Banking
Accessing banking services via Mobile phone
Using of online banking from smartphone or cellphone
What is Neo Banking
Digital Offers on the go
Banking beyond walls
“Financial Institutions must be able to deliver and easy to navigate, a seamless digital platform that goes beyond a miniaturized online banking platform.”
-Jim Marous, Publisher – Digital Banking Report
How many of you have actually visited a bank in recent times?
Do you remember the last time you visited a bank to transact money?
Not sure, right?
The reason for this can be understood better if you acknowledge the fact that you live in an era of digital banking. Your buying behavior and modes of payment have changed drastically over the last decade. Cheque and cash are old schools now, and it is more about online banking, mobile banking, and Internet banking.
This cashless economy has not only made things easier for you but has also made it all instant and quick. You no longer have to carry wads of cash or wait for banking hours to receive and transact money.
While you do have quite an options when it comes to virtual banking, here, we would focus majorly on digital banking, mobile banking, open banking, and online banking.
So here is the primer on different ways to bank.
What is ONLINE BANKING | Define Online Banking
You are using online banking service every time you log in to your online bank account. In other words, transactions conducted electronically using the internet as a gateway are called online banking.
“Online banking refers to banking services where depositors can manage more aspects of their accounts over the Internet, rather than visiting a branch or using the telephone. Online banking typically is comprised of a secure connection to banking information through the depositor’s home computer or another device.” – Techopedia.
So Online Banking is –
What are the Pros of Online Banking | Advantages of Online Banking
What are the Cons of Online Banking| Disadvantages of Online Banking
What is DIGITAL BANKING? | Define Digital Banking
While there is a tendency among people to confuse this term with online banking, digital banking is definitely not the same as the former. While online banking literally limits you to the services provided by your banks like NEFT transfers, automatic payment reminders, and the likes, digital banking goes beyond this.
Online banking focuses on digitizing the “core” aspects of banking, but digital banking encompasses digitizing every program and activity undertaken by financial institutions and their customers.
Digital Banking is –
What are the Pros of Digital Banking? | Advantages of Digital Banking
What are the Cons of Digital Banking? | Disadvantages of Digital Banking
While the advantages outweigh the disadvantages, there are a few drawbacks involved in digital banking as well.
But who considers shopping a drawback ever, right?
What is INTERNET BANKING? Define Internet Banking | What is e-banking?
You may say that online banking and internet banking are the same.
However, there is a new facet of online banking that goes over and beyond the understanding and scope of online banking.
Open Banking! Ever wonder what that means to you?
Through this concept, people can share their transaction data with third parties to boost competition in the financial market. Sounds interesting, right?
So, Internet Banking or e-banking is –
What are the Pros of Internet Banking? | Advantages of Internet Banking
What are the Cons of Internet Banking? | Disadvantages of Internet Banking
What is Mobile BANKING?| Define Mobile Banking
You all have used this at some time or the other. Every financial transaction you undertake using your Smartphone applications is termed as mobile banking. Apart from the commercial apps, your financial service provider would also have a mobile app with which you can transfer cash and make bill payments conveniently on your mobile.
So, Mobile Banking is –
This is by far the most trending among all the banking types, and the onus is that you would only need your Smartphone and an internet connection for this kind of banking!
What are the Pros of Mobile Banking? | Advantages of Mobile Banking
This banking mode is very fast and convenient and hence the most preferred one among the younger and older generation alike.
You don’t have to physically carry your cash or your card as your mobile wallets function as virtual money which can be transferred in an instant.
Transactions that are done on your mobile apps also get irresistible cash back, vouchers, and coupons that can be redeemed on your future transactions or purchases.
You can not only spend easily but also keep track of all your spending in a month.
What are the Cons of Mobile Banking? | Disadvantages of Mobile Banking
What is Neo BANKING?| Define Neo Banking
Neo Banking is –
What are the Pros of Neo Banking? | Advantages of Neo Banking
Neo banks offer –
Few of the examples of Neo Banks are Atom Bank, Fidor, GoBank, mBank, Moven, N26, Open and WeBank.
With the advent of digitization, you sure have a lot of options when it comes to financial transactions. Growing customer demand for digital access, convenience, with a focus on ease in operation, security and seamless transactions across different platforms and channels, it is yet to be seen whether the banks are investing in digital services rightly? Are they doing enough? and are they doing the right way? only the time will tell. But then, in this world of fast-evolving digitization, we are just the click NEAR!