What Do Digital Banking Services Look Like in 2021?

April 22, 2021

Digital banking services continually improve how we manage and spend our money, but how exactly do they work and who are the middleware providers powering this financial revolution?

We talk a lot about the various digital banking solutions that help companies improve their customer experience. But, what exactly is digital banking and what does a digital banking platform look like? 

Read on to learn more about digital banking platforms, the behind-the-scenes architecture and its providers, and the future of digital banking.

What are digital banking services?

Simply put, digital banking is the digitization of all banking activities and services including things like deposits, transfers and withdrawals, payments, and loans and investments. A complete digital banking service is one that is managed purely online via mobile apps and web browsers that delivers all the banking services that traditional in-person banking does.

It’s important to understand that digital banking services have developed in hand with changing consumer preferences and technological innovations. As online connectivity has steadily grown over the past decade, consumers have shifted to online and mobile devices for more efficient financial management, such as payments, savings, and account services. Today, there are a wealth of digital banking services and platforms available and consumers are all too ready to switch financial providers for banking features that more effectively meet their needs, like faster and more flexible transfers with lower fees and better payment options.

How digital banking platforms work

Technology innovations are at the core of digital banking. Digital banking platforms involve high levels of process automation and web-based services. The most important feature at the heart of today’s digital banking platforms is the advanced application programming interfaces (APIs). They enable the systems of financial institutions to connect and communicate with each other to power digital banking services and transactions as well as allow users to access their financial data via desktop and mobile devices.

Digital banking is more than just a mobile or web-based platform, however. They are end-to-end solutions that encompass the front end that consumers see, the back end that financial providers access, and the middleware solutions that connect these various nodes together. This middleware is the critical software that uses APIs and other technologies to bridge operating systems and databases and connect them with other financial applications. 

The back end architecture powering digital banking platforms

Digital banking platforms have robust IT architecture. This gives them a competitive edge over legacy systems since automated software solutions speed up processes and minimize human errors. 

More fundamentally, this paradigm shift towards automation and interconnectivity is leading to smaller, more efficient operational units where managers can refocus their efforts on tasks that require human intervention, such as customer support, rather than repetitive processes. For example, productivity software can speed up customer service since financial providers can resolve client issues faster.

Digital banking services benefit both users and progressive financial providers

Digital banking solutions present opportunities for both customers and forward-looking financial providers. For businesses, digital banking systems improve financial processes, enhance security, and help financial providers keep on top of the latest compliance and regulations. Whereas users benefit from having the freedom to conduct their financial transactions the way they want to and from the convenience of a user-friendly mobile app.

Learn how adding a digital banking service to your business—such as virtual debit cards and IBANs, or an all-in-one white-label mobile app—can build value and accelerate your business plans.