Digital Banking vs Traditional Banking: Differences And Opportunities

There is no doubt that the irruption of the digital is no longer just a change in the ways of life but a progress of it. Traditional banking can no longer be maintained if it does not update its services and adapts to the demands of increasingly digitized consumer profiles. Technologies such as Big Data or the Cloud are already part of new business models that have made the banking sector more updated than ever.

We can see it with the appearance of Blockchain or Fintech and in such simple actions as making payments with only a slight movement in the mobile phone. As a result we have a modernization in the sector that facilitates faster transactions and many other advantages. But why is traditional banking being left behind?

Differences between digital banking vs traditional banking

It is clear that banking has undergone many changes over time, but now we are at an important moment; in which we must detect the opportunities that digital banking brings us, both for business and for consumers. These are main differences according to NEEBank:

The customer’s position

With the increase in the number of people who have access to the Internet; most of the clients that were using the services of traditional banking have gone to use the services of virtual banking. There is no doubt that digital banking is gaining more and more weight within the financial market so they are attracting more customers and more market share. Therefore, the main difference is that the traditional bank is committed to the client that uses a card and cash and that moves to the bank branches while the digital client uses the latest technologies; and does not need to move to make transactions.

Two types of support

While the online customer is committed to digital support; the traditional customer uses the bank offices to interact with the bank. The main advantage of online banking is its availability 24/7, making the traditional customer more limited in time and space

Check the movements of the account

In traditional banking clients consult the balance; the history or the transfers through the cashiers of their cards. While in digital banking they can consult their data at any time with just a couple of clicks; as well as having the possibility of download the operations.

How to take advantage of digital banking opportunities

Digital banking must build an emotional connection with customers through digital media; as this type of banking entity should make its users feel important.

On the other hand, digital banking must offer a 2.0 experience to its users. “The emotional connection with users must be crucial to cultivate deep relationships, the digital experience must not be forgotten.

Another important part is the responsible use of user data. “It is important to use big data and machine learning to maximize the user experience, but in a way that is not perceived as invasive, since users should feel that their privacy is in the best hands.