The Different Formats of All the Existing Digital Banks Worldwide
The shift from traditional to digital banking, which has been gradual and continuously on the rise, is constituted by varying degrees of banking service digitization. Digital banking provides users with the ability to access financial data through desktop, mobile, and ATM services. Digital banking involves the digitization of all traditional banking products, procedures, and processes to serve customers through online channels.
Digital banks take different forms across the world. Let us take a look at the different types of digital banks there is:
NEOBANKS
Neobanks are the opposite of the traditional ‘brick-and-mortar banks. They are digital banks that operate online, with zero physical presence which delivers their customers remote access to their services via a mobile app.
Neobanks do not own their banking license but must operate in partnership with either a traditional or legacy bank to provide its services to customers.
CHALLENGER BANK
This term which originated in the UK refers to a recently launched bank that “challenges” the traditional banking institutions. It is characterized by being more user-friendly and cost-effective for customers and focuses on the audience that is underserved by the big financial institutions.
NEW BANK
These are banks that provide a full range of banking services and their only difference from the brick-and-mortar banks is the mode of operation – which is completely online. A new bank is a digital bank with its own banking license and can operate completely independently.
NONBANK
Exactly as the name implies, these are non-banking institutions that deliver financial services such as streamlined loans or mortgages but do not accept deposits or offer checking and savings accounts.
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About CIT Vericash
CIT VERICASH is a division of CIT GLOBAL, an international leading provider of innovative eCommerce and mCommerce software solutions and services with solid expertise spanning 25 years, since its establishment in Toronto, Canada in 1993. By applying CIT Global’s dedicated centers of excellence and its specialized leading products, in cooperation with its strategic partners, the company has delivered innovative and award-winning solutions to its clients in more than 48 countries, serving leading brands from North America, Europe, Asia Pacific, the Middle East, and Africa.