Digital Banking – The Future of Retail Banking

The definition of the banking industry has been rewriting by the development of digital banking. With the advantage of superior technology, digital banking has brought about huge benefits compared to traditional banks in the same service. Although there are still many barriers and inadequacies in law and management, which have partly contributed to reducing the development of digital banking. It is undeniable that digital banking is the future of retail banking

The difference between digital banking and electronic banking

Digital banking is a term used to refer to banks that perform (almost) all financial services on the internet platform. All financial operations and operations are streamlined and fast. Customers can access the service anytime – anywhere. The remarkable point is that customers do not need to spend time going to the branch for the transaction. All are processed online.

Electronic banking (E-Banking) is an auxiliary array for the main traditional banking services, including SMS Banking, Internet Banking, Mobile Banking. This online segment helps traditional banks to access more customers and support their existing services.

The first difference between the two above forms, digital banking is a model that operates independently from the electronic banking segment. Therefore, digital banking is integrated with the most advanced technology applications today such as:

• API (Application Programming Interface): is an application programming interface, allowing data to be exchanged between different programs and services.
• AI (Artificial intelligence): artificial intelligence. It is the simulation of human intellect and reflexes for individually designed actions and interactions.
• Blockchain: distributed database. The technology that enables the secure transmission of data is based on a distributed encryption system and is closely monitored by the certification community.

Vietnam moves close to digital banks to keep up with the world’s trend

From the 3 outstanding technology platforms mentioned above, digital banking is growing stronger than ever. The largest and most modern digital banks can be mentioned: DBS – Singapore, Atom – UK, Nutmeg – UK. In Vietnam, prominent names can be mentioned: Timo, LiveBank. Another brand that stands out recently is the global digital bank – NEEBank. With a global reach, NEEBank participates in the race of digital banking with a model of no fee-for-service operation – no branches – no transaction agents. The market is more and more exciting with new players, which means that consumers will benefit the most with many promotions of digital banks launched continuously, in order to attract more new users.

The technology revolution 4.0 leads to significant changes in the service industry in order to provide the best user experience. As a result, consumers have more and more choices and can be more proactive in choosing their service providers.