Digital Banking vs Internet Banking: How are they different?

Although used interchangeably, digital banking and internet banking are not the same. Internet banking is known by a variety of other names such as web banking, net banking, and online banking, which primarily revolve around front-end customer transactions done using internet browser on desktop and mobile devices and on mobile apps. It can be defined as the carrying out of customer banking activities on an internet-enabled device.

Now that we have summed up what is internet banking let us understand what is digital banking. Digital banking is the broader term which includes but not limited to internet banking.

Online or internet banking vs digital banking

Let's understand the difference between digital and net banking in detail is,

· Online or internet banking: 

Online banking began when banks started using internet technology to bring banking activities to the digital mode. With IDFC FIRST Bank internet banking, customers can access their bank account on their internet device and carry out transactional activities such as checking balances and statements, adding beneficiaries, making online payments, paying bills etc. 

· Digital banking: 

Digital banking is a transformation that is taking place in the banking industry. It is an overall ecosystem, which includes the digitised ecosystem for enhancement in overall banking experience, speed, accuracy and ease for the front-end and the back-end. It encompasses multiple intermediaries, interfaces and technologies that help bank improve on their systems and processes, drive advanced automation, better use artificial intelligence and machine learning for a seamless experience, available virtually.   Eventually, digital banking offers reduced dependency on traditional banking by replicating it digitally , from offering e-KYC processes to enhancing ATM experiences to using Debit and Credit Cards

Security

Net banking generally ensures a two-factor authentication of your online bank accounts through your login credentials and an OTP (one-time-password). In digital banking, the security measures are more layered across transactions. This is partly because sensitive information is handled through digital banking apps on mobile devices, as in the case of the IDFC FIRST Bank mobile banking app. Additional layers of biometric and password authentication are integrated at various stages of a digital banking transaction.

Technology

Internet banking is a framework that remains more or less consistent. The user experience is simple and not always mobile-friendly. Technology is used in online banking to optimise the banking experience in transactions. Digital banking uses cutting-edge technologies like blockchain, cloud computing, artificial intelligence, robotics etc., to expand its service coverage. An IDFC FIRST Bank digital savings account can be opened and operated entirely from your smartphone, thanks to these innovations in banking technologies. 

Effect on banks

Online banking requires a comparatively lower initial investment. It reduces the workload on the existing workforce, as several customers no longer visit physical branches. Digital banking requires a heavier initial outlay, but it can radically change the job outlook in the banking industry. When fully adopted, digital-only banks will require fewer tellers and clerks and more IT and digitisation experts. 

Effect on customers

For customers, internet banking means they can carry out regular banking transactions with fewer visits to bank branches. Digital banking, on the other hand, includes personalisation methods, which result in mapping customer preferences and features like chatbots and online support. These features eventually increase customer satisfaction in banking services.

Conclusion

Today, digital banking is bringing about sweeping changes to the ways of banking for an enhanced experience, making your bank accessible at your fingertips. IDFC FIRST Bank offers a gamut of modern-day digital banking services providing a superior and seamless experience along with user-friendly features on internet banking and mobile banking app. 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.