Digital and mobile banking are two words we hear thrown around nowadays. Many people assume that these words mean the same thing. But are they really the same thing?
First, we need to define the two terms. Mobile banking, according to Investopedia, is simply the act of performing financial transactions on a mobile device, namely a smartphone or a tablet. This is one of the easiest ways people complete their financial transactions nowadays.
Mobile banking is a big part of digital banking. Digital banking is merging what used to be online banking with the now more common mobile banking. This merger creates even more access to time-saving apps and financial knowledge.
- Digital banking is not limited to office hours. What this means is that you can manage your finances at any time. Online and mobile banking are often still restricted as you have to wait for when the banks are opened to carry out some transactions.
- Digital banking makes it easier for people to compare rates and fee structures to find what best works for their needs.
- Digital banking offers more services to those that rely heavily on a mobile phone. In Nigeria, this is a large population, and they were locked out of many banking activities until recently. Digital banking, in other words, levels the playing field.
- There is no need for the endless paperwork that often comes with banking the old way. In Nigeria especially, getting things done at your local bank requires filling out numerous paperwork, which is sometimes confusing and time-consuming.
- Digital banking has enabled people to set up automatic bill payments without worrying about the stress of missed payments or struggling to transfer money to make payments physically. This has been a game-changer for so many people.
In conclusion, digital banking is the whole picture; mobile banking is just a piece of the puzzle that allows the entire image to work. The most crucial difference that digital banking brings is how much it empowers people to control their finances from the comfort of their homes.