Digital Banking refers to banking, which offers services in digital form only.
Traditional banking is labor intense – there are relationship managers, who speak with the clients. There are operations departments, which execute manually the client orders and so on. Banks are usually silo-structured organized. The processing within the silos and between the silos was usually manual.
In the case of Digital Banking the interactions and processings are digital:
Client orders are received in digital form
Orders execution is in digital form
Amount of manual processing is limited and reserved for the exceptions processing
A 100% digital servicing is difficult to achieve because there are always some receptions, which require manual analysis (let’s think here on special KYC or AML validations). However, when banks limit their service offerings to the high volume and standardized services, then 100% of digital banking is achievable.
The next level is DeFi – Decentral Finance – banking. DeFi focuses on high volume standardized services and has a 100% digitalization ratio.