Digital banking isn't always easily defined and there's a reason for that. Beyond the fact that it's still evolving, there are lot of pieces for what basically boils down to sending and receiving financial information electronically.
Digital banking began when the internet allowed people to do their banking online. Suddenly customers had 24/7 access to do most of what they had to do at one of their financial institution’s branches—account services like paying bills, checking their statements, transferring money, arranging loans, financing loans and ordering checks. Today's online banking does that and a lot more.
Now, in addition to that, customers can use bill pay, which allows them to receive eBills and set up monthly payments that the bank automatically makes for them. That helps eliminate late fees, improves credit scores and saves time—so there's no need to visit a company's website, login and pay a bill; the bank or credit union can do all of that for customers. People can also direct their banks to take a specific portion of their payroll checks out each month and put it into their savings account, which they can check conveniently from their home.
Digital banking as it's known today revolves more around the technology of mobile phones and what they make possible. For starters, they allow people to make check deposits using their mobile phones by taking pictures of the front of the check and the back of the signed check. There is a way to make deposits via a computer, but it's not nearly as fast and easy.
On a large scale, mobile payments are changing much of the way people "move their money." Most mobile payments work in conjunction with a bank—users need to enter their debit card information to sign up for them (although this is evolving as well with companies like Apple offering their own payment cards).
Not only people using mobile payments for convenience, they're also earning money through purchasing reward programs for every dollar they spend using them. The following is an overview of are some of the top mobile payment apps customers are using. Discover how Stockman Bank expanded their digital banking offerings to include more user-friendly and flexible innovations that improved the customer experience.
With a slogan of "Cashless made Effortless," Apple pay is designed for customers who have Apple phones and Apple Watches. Once set up, they will be able to order and pay for services with a tap of their finger.
PayPal One Touch
Their slogan "Turn sixteen digits into one touch" does two things at once. It taps into the convenience factor of mobile payment apps (one touch versus entering a 16-digit card number) and incorporates the name of the service. PayPal One Touch also offers extra security and a broad reach to customers.
Going straight towards a growing trend, Google Pay's slogan is "A contactless way to pay, by Google." With such a strong brand identity, they wisely include their name in the slogan. Google Pay touts their multi-layers of security as an added incentive for users to choose their mobile payment app.
Because of the number of features Samsung Pay offers, their slogan is "more than a wallet." In addition to the convenience their mobile payment app delivers, users can send and receive gift cards and they can take pictures of membership and loyalty cards to add to it.
The digital wallet
People are more likely to leave their wallet behind rather than their phone for good reason: they can pay for just about anything with it. Equipped with mobile payments like Google Pay and many others including Venmo, which also has a social component to it, people have a lot more payment options than a typical wallet gives them. And it's going to keep evolving. Recently, for example, Bank of America introduced a digital debit card their customers can download on their mobile device.
The POS system
To enable people to use all of their mobile payments, brick-and-mortar businesses will need to update their POS systems so that they have the technology to efficiently accept mobile payments. Particularly during the pandemic, accepting contactless mobile payments is essential and will be even when a vaccine is found.