Digital banking is growing rapidly as going digital provides tremendous convenience with 24/7 services and an opportunity to reach more of the world’s population and demographics (i.e. the previously unbanked).
This growth is being fueled by open banking regulations, the ease of opening an account online, and simple market demand to go digital and avoid branch banking. As a result, there now is no shortage of options to choose from as these digital banks (a.k.a. challenger banks or neobanks) have quickly become widely accepted.
Unlike online banking, which only digitizes the core aspects of banking, digital banking looks to digitize every program and activity undertaken by legacy financial institutions.
This agility is enabled by their non-legacy infrastructures. They are built to offer modern, mobile-only banking services with fully digitized and personalized experience - often powered with artificial intelligence.