Digital banking is a new concept in the area of electronic banking, of using new innovative technologies and banking tools. It aims to leverage strengths of digital technologies, to bind and put together the standard online/mobile/electronic banking services to enrich and enhance value of the banking service rendered and user experience. In this modern age of technology, banking business will be very difficult without digitization. Banks services to its customers cannot reach the desired level and no bank will be able to survive for long in this competitive market without adopting digital banking.

Adoption in digital channels can help banks to cut costs, deepen customer satisfaction and loyalty and drive long term relationships and profitability. Digital banking is on the threshold of overcoming traditional “brick and mortar” banking as the preferred delivery channel. There are evidences that if a bank is not responding, as quickly as it should, it may actually be missing the bus. Improvements in user-experience design through interactive interfaces that blur the boundaries between the real and the virtual thereby bringing data to life through rich presentations. Tremendous advances in analytical tools which are able to decipher and work out customer profiles.

Digital technology is, itself, changing and every advance in technology throws open new capabilities for enhancing customer experience. Technology reduces the cost of operations and servicing for the bank, and the reduction can, thereby, be passed on to the customer. Digital channel is more customer friendly in terms of saving their efforts, cost and time. However, computerized operations bring in their associated risks, and all products, services and offerings need to be secure, so that information loss, error and unintended access does not happen. With more digital contents and platforms, banks need to implement information security measures as necessary.

The customer education, and customer communication for technology based services will be different in content and mode of delivery, compared to the traditional practices. Banks need to master these also for effective use of their offerings. Security extends from the bank’s hardware to the user’s device – whether a PC/Mac at home, a tablet or the Smartphone. In all cases, digital banking must employ strong and secure technologies which protect the communication, user information and the bank’s IT infrastructure. Banks should address weaknesses in security, connect security interests with those of business interest and think beyond regulatory compliance.