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Digital Banking Platform Powerful Trends

Digital banking is a one-in-a-lifetime opportunity that offers numerous advantages and ways to improve your business.

Digital Banking Platform Powerful Trends
Digital Banking Platform Powerful Trends
Digital Banking Platform Powerful Trends

Unfortunately, traditional banks can’t operate administrative tasks and data processing as efficiently and securely as digital banks do. With the increased consumer demand, more and more financial institutions resort to deploying technological advancements within their product or service.

In this brief guide, we will break down the shift to the digital banking landscape and share the most recent trends in the fintech industry with you.

What is digital banking?

Digital banking is a more advanced and sophisticated way of managing finances that emerged due to the immense growth of the digital-only market. It implies that all banking operations exclusively available only within a bank branch some years back became entirely digitized.

Beyond that, the entire customer journey relies on artificial intelligence (AI) to automate front- and back-end operations, from the subscription to a new service or contract (online credit, savings, etc.). The digital transmission of all client documents and the electronic signature at any subscription place is an integral part of this process. This automation of all the bank services provides financial institutions, companies, and, most importantly, their customers the opportunity to conduct wealth management services faster and cheaper.

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What is the difference between online banking and digital banking?

These two new alternatives to traditional physical establishments may seem interchangeable, but they significantly differ.

First of all, digital banks are most often accessible from a dedicated mobile application, while online banks are available on any terminal: PC, smartphone, or tablet.

Secondly, online banking is systematically backed by a traditional bank. Even if it is not connected to a physical branch, an online bank uses the existing principles and structure to offer a dematerialized offer of equivalent quality. Digital banks, on the other hand, have to do with high-level process automation, web-based services, and APIs.

Last but not least is the time of processing. And it’s not just about opening an account that takes a few minutes when you use a digital bank. All banking transactions are processed instantly. This immediacy of financial services is something that some online banks still need to deploy.

Types of trendy digital banking platform products

Native Mobile Banking

Given how convenient mobile apps are to their users, banks developed a native app to facilitate financial operations. They can be programmed from scratch with the native code language and an intelligent ecosystem fitting the technical and user experience frameworks of the device’s particular operating system.


Essentially, BaaS (Banking as a Service) designates the banking services which grant the use of their application programming interface (API) to third parties. It is done to enable different players to ultimately manage accounts, issue cards, provide IBANs and deliver other payment systems to their customers.

Embedded Banking

Embedded banking is the practice of embedding banking tools in non-financial platforms. Businesses implement it with the use of the Baas system. It allows companies, brands, or retailers to incorporate banking software directly into their websites or mobile apps with comprehensive services. They don’t need to redirect users to third-party websites, which means a smoother customer experience.

Cloud-Native Banking

The following automotive and scalable trend is a cloud-native environment in which IT guys build unique applications with the proper allocation of IT resources. And although the cloud-native philosophy means the detachment from on-premises infrastructure, a developed solution doesn’t lose its value—just the opposite. You have new services delivered to the market in a much shorter time frame and of high quality.

Fast or Instant Payments (Instant SEPA, Faster payments)

Now comes the following solution: an instant transfer of money in seconds! You can also hear the term “SEPA,” which signifies “Single Euro Payments Area,” a single euro payment area that aims to simplify bank transfers and direct debit payments. Thanks to it, individuals and companies can thus make standard or instant transfers and direct debits within this geographical area.

Alternative Finance

Alternative finance has to do with emerging banking mechanisms such as cryptocurrencies, Defi, crowdfunding, etc. Often, it is carried out with the assistance of an intermediary platform. This mode of financing involves third-party capital to connect fundraisers directly with funders, which in turn streamlines transaction costs and improves market efficiency.


Digital banking is the digitization of all banking products and services and the replacement of traditional banking with more convenient online and mobile alternatives.

Digital banking eliminates a consumer’s need to visit a branch and allows immediate access to banking operations from the comfort of their homes.

No. A digital bank is not to be confused with neobanks. Digital banks can also operate with a physical branch should customers need to visit. Neobanks, on the other hand, can have only an online presence and provide services exclusively through online platforms.

Unlike brick-and-mortar banks that impose many requirements, such as paperwork, in-person visits, and pay slips, digital banks save their customers from unwanted errands.

The beauty of digital banking is that customers can open accounts through video calls using just a passport, access 24/7 customer service through chat features, and utilize a wide range of services conveniently within mobile apps.

In the realm of digital banking, the most exceptional services of today are those that harmonize innovation, convenience, and a customer-centric approach, providing seamless management of financial lives across all devices for their users.

Here’s the list of digital banking services that your customers won’t want to miss:

  • Online Account Opening: the ability to open a bank account.
  • Mobile Banking: bank account management on the go.
  • Digital Payments: secure and quick payments using digital platforms such as mobile wallets, QR codes, or online payment gateways.
  • Fund Transfers: domestic or international money transfers between accounts.
  • Bill Payments: electronic bill payments without the need for writing and mailing checks.
  • Card Management: debit or credit card management, including setting spending limits, blocking/unblocking, and tracking transactions.
  • Account Monitoring: the record of account balances and transaction history.
  • Customer Support: customer service and support through digital channels, such as chatbots or live chat.

To meet the needs of the digital consumer, it is more important than ever to provide multiple channels and facilities. The leading digital banking channels include:

  • Online Banking or Internet Banking
  • Mobile banking
  • ATMs
  • Interactive Voice Response
  • Banking API access (BaaS)
  • Open Banking API (Regulated PSD2)

There are many established digital banks out there, but if we had to name the most popular ones by region, it would definitely be N26, Revolut, Monzo, Bunq in Europe and Chime, Axos Bank, Varo Money, Simple, SoFi, Ally Bank, Aspiration, Atom Bank in North America.

Digital banking offers a lot of conveniences for customers, such as the ability to go cashless, make immediate transfers, automate tax and bill payments, perform deposits and withdrawals, and track finances.

However, FinTechs aren't left out either, as digital banking provides several advantages for them as well. By leveraging digital banking infrastructure, FinTechs can offer innovative financial solutions with extended banking services, streamline their operations, reduce overhead costs, access a broader customer base, and adapt new breakthrough developments in decentralised finance technologies.

There are several types of digital banking accounts, including the following:

  • Savings Accounts: an account that enables you to save money while earning interest.
  • Zero Balance Account: a variation of the savings account, which has a certain minimum threshold of balance required to maintain the availing of the bank’s services.
  • Salary Account: an account type designed for employees to receive their salary installments from their employers.
  • Business Accounts: an account tailored to the needs of small and medium business owners who want to manage finances, remit salaries, receive dues, pay bills, and process vendor payments.
  • Deposit Accounts: a deposit account opened with the purpose of goal-oriented savings.
  • Investment Accounts: an investment account that facilitates investment through a systematic investment plan (SIP).

Digital banking industry trends include the rise of mobile banking, open banking, personalized banking, voice banking, increased emphasis on artificial intelligence and chatbots, enhanced cybersecurity measures, and integration of APIs.

The future outlook for digital banking is highly promising. Digital banks will likely expand their services, leverage advanced technologies like blockchain and biometrics, further enhance user experiences, and establish stronger collaborations with fintech companies. The shift towards digital banking will free the room for new possibilities and innovation within the financial realm.

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