Best Digital Banking Platforms
Digital banking platforms digitize bank operations, facilitating digital customer interactions and allowing banks to offer a host of digital financial products. With a digital banking platform, banks can jumpstart and ensure the transition from brick and mortar to a multichannel, digital bank.
These solutions differ from loan software, which is more narrow in scope and designed to facilitate the origination and servicing of loans. Digital banking platforms manage the digitization of multiple types of banking products, which may include commercial accounts, retail accounts, back-office tasks, and more. Banks rely on digital banking platforms to offer a wide range of financial products across multiple digital channels, meeting customers where they live and work.
To qualify for inclusion in the Digital Banking Platforms category, a product must:
Best Digital Banking Platforms At A Glance
G2 takes pride in showing unbiased reviews on user satisfaction in our ratings and reports. We do not allow paid placements in any of our ratings, rankings, or reports. Learn about our scoring methodologies.
- Overview
- User Satisfaction
- Seller Details
FIS Core Banking offers agile solutions that integrate seamlessly with our core systems or with others via a componentized architecture. This approach enables community, mid-tier, large and global fin
- Banking
- 62% Enterprise
- 31% Mid-Market
26,623 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Oracle Banking Digital Experience enables banks to attract, onboard, and service customers with a context-aware channel solution powered by a robust API framework that integrates with any core process
- 54% Enterprise
- 23% Mid-Market
822,135 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Our platform, born in the cloud, adapts to new technologies without major overhauls. With robust security features and unmatched reliability, we ensure your services remain uninterrupted and cutting-e
- Banking
- Financial Services
- 100% Mid-Market
- Overview
- User Satisfaction
- Seller Details
Provide efficient, resilient financial services operations for enhanced customer and employee experiences. Digitize core processes across your institution on a single platform.
- 64% Mid-Market
- 36% Enterprise
51,662 Twitter followers
- Overview
- User Satisfaction
- Seller Details
TCS BaNCS Digital is an enterprise wide solution that enables your bank customers the flexibility and convenience of managing their finances anywhere
- 45% Enterprise
- 27% Mid-Market
582,357 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Enqura was established in 2014. With offices in London, Istanbul, Baku, and Dubai Enqura provides comprehensive end-to-end solutions to financial institutions worldwide. Enqura's AI Driven Financial T
- Computer Software
- 90% Small-Business
- 10% Mid-Market
- Overview
- User Satisfaction
- Seller Details
Appway Digital Banking Platform supports real digital transformation through intelligent process orchestration, enabling authentic human interactions across all touchpoints in the physical and digital
- 43% Small-Business
- 43% Enterprise
1,739 Twitter followers
- Overview
- User Satisfaction
- Seller Details
The Alkami Platform provides financial institutions a complete digital banking solution to securely onboard, engage, and grow retail and business users for banks and credit unions. Clients can tailor
- Banking
- Financial Services
- 89% Mid-Market
- 8% Small-Business
1,491 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Finacle Online Banking is an omnichannel enabled enterprise-class internet banking solution. This unified solution for retail, SME and large enterprise customers is differentiated by its comprehensive
- Banking
- 42% Enterprise
- 42% Mid-Market
5,864 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Q2 Platform provides financial institutions leading-edge technology and unmatched customer service with feature-on-demand capabilities for retail and commercial banking.
- 70% Mid-Market
- 20% Small-Business
35 Twitter followers
- Overview
- User Satisfaction
- Seller Details
- 80% Small-Business
- 20% Mid-Market
- Overview
- User Satisfaction
- Seller Details
Built on advanced architecture, Finacle Core Banking Solution offers a comprehensive suite of capabilities to power your banks’ digital transformation.
- Banking
- 67% Enterprise
- 23% Mid-Market
5,864 Twitter followers
- Overview
- User Satisfaction
- Seller Details
nCino (NASDAQ: NCNO) is powering a new era in financial services. The Company was founded to help financial institutions digitize and reengineer business processes to boost efficiencies and create bet
- Banking
- 46% Enterprise
- 38% Mid-Market
3,746 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Modern Business Banking
- 63% Small-Business
- 25% Mid-Market
- Overview
- Pros and Cons
- User Satisfaction
- Seller Details
Temenos Infinity is the platform for business transformation that helps financial institutions to accelerate their digital transformation initiatives, bringing world-class front and middle office tran
- Banking
- Financial Services
- 69% Enterprise
- 31% Mid-Market
11,669 Twitter followers
- Overview
- Pros and Cons
- User Satisfaction
- Seller Details
The Backbase Engagement Banking Platform is a solution designed to assist banks in modernizing their digital banking operations and delivering improved customer experiences. This platform is suitable
- Banking
- 50% Enterprise
- 40% Mid-Market
4,455 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Engage intelligently with customers, deliver a unified digital experience and acquire, deepen and grow relationships
- 50% Small-Business
- 33% Enterprise
- Overview
- User Satisfaction
- Seller Details
SBS Banking Platform is a next-generation, cloud-native, modular core banking solution built to empower financial institutions with the agility, resilience, and innovation needed to thrive in today’s
- 50% Mid-Market
- 38% Enterprise
- Overview
- User Satisfaction
- Seller Details
- 60% Small-Business
- 40% Mid-Market
- Overview
- User Satisfaction
- Seller Details
Velmie is a tech company providing a range of tools and solutions for Fintech businesses. With the digital banking platform, our mission is to deliver competitive advantage with cutting-edge technolog
- 75% Mid-Market
- 25% Small-Business
- Overview
- User Satisfaction
- Seller Details
BANKTRON is an omnichannel (Internet, Mobile, Web Services etc.) solution for modern financial institutions.
- 67% Enterprise
- 33% Mid-Market
- Overview
- User Satisfaction
- Seller Details
Digital Edge is a digital banking platform which provides brand new possibilities in banking, thanks to its comprehensive set of touchpoint applications and ample digital engagement capabilities, all
- 50% Mid-Market
- 50% Small-Business
577 Twitter followers
- Overview
- User Satisfaction
- Seller Details
B2BPay is a online banking software that offers a virtual bank account for business. It features a non resident bank account in Europe, can integrate with marketplaces and payment gateways and gets no
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Clayfin’s integrated, omnichannel, retail banking solution is designed to help you deliver modern and cross-platform customer experience. It is aligned with your customer expectations and enables you
- 50% Enterprise
- 50% Small-Business
- Overview
- Pros and Cons
- User Satisfaction
- Seller Details
BankWorld Internet is an internet banking solution with personal finance management and customer experience personalization capabilities.
- 50% Mid-Market
- 50% Small-Business
1,790 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Celeriti™ is DXC's end-to-end suite of SOA-based enterprise software for banking, cards, payments and lending.
- 50% Mid-Market
- 50% Small-Business
39,187 Twitter followers
- Overview
- User Satisfaction
- Seller Details
FintechOS is the global leader in fintech enablement, with a mission to make fintech innovation available to every company. The FintechOS platform simplifies and accelerates the launching, servicing,
- 50% Mid-Market
1,275 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Finzly BankOS is a digital banking platform and a parallel core. BankOS, fosters innovation on a cloud native, API-first digital core that allow banks to launch modern solutions quikly and to partne
- 50% Enterprise
- 50% Small-Business
257 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Mambu is a cloud platform designed to let user rapidly build, integrate, launch and service any lending portfolio into any market. SME lenders.
- 100% Mid-Market
3,181 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Unit is a banking-as-a-service platform that empowers technology companies to accelerate time to market with bank accounts, cards, payments, and lending services built into their products. The bank r
- 67% Mid-Market
- 33% Small-Business
- Overview
- User Satisfaction
- Seller Details
Yapily is Europe’s leading open banking infrastructure platform solving a fundamental problem in financial services today: access. We securely connect our customers to thousands of banks across Euro
- 67% Mid-Market
- 33% Enterprise
899 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Appzillon Digital Banking is a suite of pre-built omni-channel banking solutions that adopt the banking industry best practices to deliver transformative yet consistent banking experiences to both cus
- 100% Small-Business
351 Twitter followers
- Overview
- Pros and Cons
- User Satisfaction
- Seller Details
Bankableplatform enables you to launch a digital bank from scratch.
- 50% Enterprise
- 50% Small-Business
1,994 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Bannois everything your institution needs to service users and deploy modern experiences across all your digital channels.
- 50% Enterprise
- 50% Mid-Market
979 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Manage investor communications from beginning to end, eliminate unnecessary printing and shipping overruns, and ensure timely delivery of shareholder communications.
- 33% Mid-Market
- 33% Enterprise
5,976 Twitter followers
- Overview
- User Satisfaction
- Seller Details
BUSINESSNEXT offers a range of composable business solutions primarily for the banking, insurance and financial sectors worldwide. Eminent industry experts have acknowledged its leadership role, attr
- 100% Enterprise
- Overview
- User Satisfaction
- Seller Details
cloud-based platform allows financial services to design and deploy financial products
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
EFY Finance es un neobanco con sede en El Salvador, especializado en la gestión y el uso de activos digitales a nivel global. Ofrece servicios financieros como cuentas corporativas, inversiones, inter
- 100% Small-Business
498 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Finexer Open Banking is one of the best Open Banking provider in the UK in 2025. Finexer Open Banking platform, providing integrated instant payment and enriched data solution for the enterprise. Fin
- 50% Mid-Market
- 50% Small-Business
- Overview
- User Satisfaction
- Seller Details
Our Business Activity Monitor, enables you to make decisions based on statistics, access trends and the use of channels. Use our Analyzer and filter results per channel, country, time zone or device.
- 100% Small-Business
2,151 Twitter followers
- Overview
- User Satisfaction
- Seller Details
The Intellect Digital Enterprise Platform (iDEP) makes digital a reality. iDEP powers your bank with a true omnichannel experience across all the products & services you provide to your customers,
- 100% Enterprise
- Overview
- User Satisfaction
- Seller Details
M2P's Turing Core Banking System (CBS) is a next-gen platform that focuses on customer experience, operational excellence, and security well within the regulatory framework. It has the richest end-to-
- 100% Mid-Market
1,417 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Modefin is a global Banking and Financial Technology solution provider that empowers banks and financial institutions with state-of-the-art digital banking solutions that help them to thrive in the di
- 100% Mid-Market
76 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Narmi is how community financial institutions unlock the very latest capabilities in digital banking and account opening – so they can move faster, tap new growth opportunities, and be where banking i
- 100% Mid-Market
157 Twitter followers
- Overview
- User Satisfaction
- Seller Details
NETinfo Digital Banking Platform provides comprehensive out-of-the-box functionalities and features to satisfy the digital banking needs of today's consumer-centric financial institutions.
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Neutrinos is a One-Stop Multi-Experience Platform focused on helping enterprises achieve their business outcomes by transforming digital and in-person journeys for their customers, employees and citiz
- 100% Enterprise
- Overview
- User Satisfaction
- Seller Details
NexorONE® is a Robust, Flexible and Scalable Online Banking Platform with a broad diversity of modules to serve different financial institutions. The system can also be used to adapt to your specific
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Pulsate Locate is a location marketing solution that enables marketers to engage users based on their precise location.
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Purpleplum is a modern, full-stack engagement banking platform designed to help banks, NBFCs, credit unions, and fintechs deliver seamless digital experiences across both retail and business banking s
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Q2 Gro is redefining the account holder experience for the digital banking channel.
- 100% Mid-Market
35 Twitter followers
- Overview
- User Satisfaction
- Seller Details
We're closing the gap between community banks and FinTechs. Empowering you with fast, secure, and scalable partnership banking solutions, we tear down integration complexity and build bridges. We're h
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Cyberbank is the next-gen digital and core banking platform from Technisys that redefines the customer experience. How? By enabling you to dynamically create tailored financial products at the speed o
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
VNLIFE is a diverse ecosystem comprising of leading companies driving transformations in both traditional and growing demand sectors in the economy such as tourism, logistics, commerce, and constantly
- 100% Small-Business
- Overview
- User Satisfaction
- Seller Details
Advapay is a technology company providing the Digital Core Banking platform to empower fintech clients or digital banks to start their businesses and accelerate digital transformation. The platform de
47 Twitter followers
- Overview
- User Satisfaction
- Seller Details
NXT is a unified online, mobile, and digital banking platform with integrated capabilities for consumers and businesses. Its single platform employs the most rigorous security and permission-based fra
3,479 Twitter followers
- Overview
- User Satisfaction
- Seller Details
We are a software company that delivers digital banking solutions to banks and credit unions throughout the United States. Our solutions meet a wide range of needs, from leveling the playing field
- Overview
- User Satisfaction
- Seller Details
Arttha Digital Banking empowers banks to deliver a superior customer value and profitably transition to a digital age. Arttha’s configurable platform seamlessly integrates with the existing legacy sys
- Overview
- User Satisfaction
- Seller Details
ATLANTIS is dedicated to building BANKING, CREDIT, DATA, and INFRA for Digital Consumers and SMB's in India and SE-Asia.
- Overview
- User Satisfaction
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Atom is the cross-functional, holistic innovation platform for the banking sector. We address three of Gartner’s categories: Banking Payment Hub Platforms, Commercial Banking Cash Management and Trade
- Overview
- User Satisfaction
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- Overview
- User Satisfaction
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AURIGA IS THE RECOGNISED ITALIAN LEADER IN INNOVATIVE OMNICHANNEL BANKING SOLUTIONS. THE WINWEBSERVER (WWS) SOFTWARE IS A PROVEN AND MODULAR SOLUTION THAT PROVIDES FEATURE-RICH BANKING SERVICES THROUG
- Overview
- User Satisfaction
- Seller Details
BANKERS FRONT is an integrated, modular, multi-channel front-end solution for private banking & wealth management institutions. BANKER'S FRONT is the one and only portal supporting Relationship Ma
1,739 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Bankers Realm is a solution based on centralised architecture. It runs on a windows based environment which is used by many banks hence, making it a solution which is easy to deploy, run and integrate
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- Overview
- User Satisfaction
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BankFlex is an innovative banking suite offering integrated financial services management features for retail and commercial clients.
- Overview
- User Satisfaction
- Seller Details
Banqsoft's Digital Banking solutions help banks deliver a superior customer experience, increase efficiency, reduce risk, and accelerate time to market. With highly automated processes, a seamless use
- Overview
- User Satisfaction
- Seller Details
Financial providers — from large banks, fintechs, and credit unions to community and independent mortgage banks — use our platform to transform consumer banking experiences and streamline workflows fo
3,057 Twitter followers
- Overview
- User Satisfaction
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Blossom is redefining financial technology through beautiful design, simplicity, and deep collaboration. It’s more than just a platform, it’s a true partnership, built with credit unions, for credit u
- Overview
- User Satisfaction
- Seller Details
BrightFi provides technology and infrastructure to community banks and credit unions with the belief that building stronger banking helps build better communities. Our digital banking platform was des
- Overview
- User Satisfaction
- Seller Details
Cegid Exabanque meets your needs for payment, collection, treasury and accounting reconciliation management. It is aimed at all companies and organizations with accounts domiciled in Europe.
10,770 Twitter followers
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- User Satisfaction
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Making pay by bank better for everyone. Accept payments directly from a bank account – offering flexibility on how customers pay.
- Overview
- User Satisfaction
- Seller Details
The "Concierge Bank" App, a marketplace-banking product by Torry Harris is helping banks worldwide to offer innovative new products to customers through an API-driven marketplace solution and a simple
1,794 Twitter followers
- Overview
- User Satisfaction
- Seller Details
Connecta is a global payment and wallet platform that helps businesses send, receive, and manage money across borders—especially in emerging markets. We make it easy for companies to: - Accept pay
- Overview
- User Satisfaction
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banking software for account opening
- Overview
- User Satisfaction
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Corillian Online from Fiserv provides banks and credit unions with a superior online banking experience that not only meets growing digital expectations of your customers but also drives value back to
25,764 Twitter followers
- Overview
- User Satisfaction
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CLX.E-Banking Suite is a digital banking platform that combines asset management, customer service, and bank document management modules.
- Overview
- User Satisfaction
- Seller Details
CreditSnap is a fintech platform designed to provide end-to-end digital solutions for banks and credit unions, specializing in lending and deposit account opening. The platform includes features such
- Overview
- User Satisfaction
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1,689 Twitter followers
- Overview
- User Satisfaction
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ClientTrade® is our longstanding corporate facing solution which is being used by over 30,000 corporates worldwide. In its latest version, CTNet, it is a web-based J2EE solution which can be fully int
- Overview
- User Satisfaction
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Digibanc™ by Codebase is an award-winning digital banking platform designed to empower financial institutions with speed, agility, and innovation. Built cloud-native and API-first, Digibanc enables ba
- Overview
- User Satisfaction
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- Overview
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We provide a holistic digital engagement platform with the mission to enable banks of any size globally to implement delightful mobile and web experiences for their customers and provide them with the
58 Twitter followers
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Toucan White-Label Digital Wallet is a fully customizable, secure, and scalable wallet solution designed to help businesses launch their own branded digital wallets. It supports peer-to-peer transfers
6 Twitter followers
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- User Satisfaction
- Seller Details
ebankIT enables banks and credit unions to deliver the same humanized, personalized, and accessible digital experience on mobile, web, and voice banking, as well as whatever future channel may come ne
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- User Satisfaction
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EBANQ is an extremely user-friendly and clean white-label banking platform. We can have your own online banking operations up and running in 24 hours. EBANQ is used by Electronic Money Institutions (E
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- User Satisfaction
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eBSEG Digital banking solution offers a secure and rich UX application providing a world-class banking and payment experience to your customers over mobile Banking and Internet Banking. With eBSEG Di
138 Twitter followers
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- Overview
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Cloud-Based Core Banking Platform Cloud-based composable core banking system for financial institutions with the “Financial Function as a Service” principle.
- Overview
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We build better digital banking software for the Australian financial industry
- Overview
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At Finacus, we craft innovative, integrated software solutions and services to cater Banking and Financial Institutions across the globe, taking care of their domain specific challenges and fast-paced
72 Twitter followers
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Finastra Digital enables the digital transformation that means financial institutions can ensure growth driven by strong customer focus. With Finastra Digital, banks can create frustration-free bankin
11,365 Twitter followers
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- User Satisfaction
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The next era of financial infrastructure is here—and it’s driven by AI, not legacy code. Finpace replaces brittle, manual systems with an intelligent backend that adapts instantly. No more waiting for
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Finuevo Digital is a groundbreaking digital banking platform that redefines the banking experience. Designed to cater to both professionals and end-users, this platform seamlessly bridges the gap betw
346 Twitter followers
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Flybits delivers personalization at scale across web and mobile to make banking apps the go-to destination for customers. We enable digital and marketing teams to bring the offline experience online a
- Overview
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FORPOST is made to unite all banking operations in one flexible and convenient system.
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Geniusto is a fintech enabler, platform solutions and services provider — delivering digital banking technologies and services to the BSFI and other sectors across the globe.
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- Overview
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Halcom's Digital Banking platform for SMEs is not just another amped-up Retail Internet Banking, or toned-down Corporate one. It is an adaptive, targeted and compelling digital banking proposition for
- Overview
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At Hyperstacks Inc., we help entreprenuers and startups develop their idea into a solid business. We also provide mobile app solutions for companies to automate traditional procedures. Our dynamic tea
Learn More About Digital Banking Platforms
What are Digital Banking Platforms?
Digital banking platforms are web—or mobile-based systems that can be accessed online or through mobile apps. They offer a wide range of financial services and make banking convenient and affordable by eliminating the need for in-person branch visits.
Users can create and manage accounts, check balances, send money to others, and pay bills online from any location. Digital banks may provide access to ATMs, chat, email, and customer care. They frequently offer investment services, such as robo-advisors and trading, support personal financial management, and facilitate digital payments.
The best digital banking platforms also provide data safety by including encryption and multi-factor authentication. Due to lower operating expenses, digital banks frequently offer lower fees and attractive interest rates. They may also use AI and third-party service integration to provide customized experiences.
Fintech platforms are increasingly becoming popular due to their practicality and adaptability to shifting consumer tastes brought by digital transformation in banking.
What Types of Digital Banking Platforms Exist?
Each digital banking platform is designed to cater to customers' needs and preferences. Based on their structure, target audience, and services provided, there are the following types of digital banking software and platforms.
Online only Banks
Online-only banks are virtual banks that operate entirely online. Digital-only banks do not have physical branches and provide a digital platform for users and customers to perform banking activities. Like traditional banks, they offer a full suite of banking services, including checking and savings accounts, loans, and more.
Neobanks
Neobanks operate entirely online, using an online banking model similar to online-only banks. However, their licensing ownership, focus, and regulatory oversight differ.
The significant difference is that neobanks partner with traditional banks to provide services while specializing in specific financial services like savings accounts, payment processing, or currency exchange.
Internet and mobile banking
Most traditional banks are innovating with mobile and internet banking services, which provide most of the banks’ functionalities and offerings.
This allows customers to perform all necessary banking actions, such as money transfers, checking balances, ordering checkbooks and bank statements, depositing cheques, and requesting services online, without going to the brick-and-mortar branches.
Unified payments interface (UPI)
UPI is an instant payment system that works via mobile applications. Its interface facilitates banks' peer-to-peer and person-to-merchant transactions.
The transactions use highly secure identity documents (IDs) called UPI IDs linked to bank accounts: QR codes, phone numbers, and special characters.
Banking cards
Banking cards are used not only for withdrawing money from ATMs but also to enable individuals to transact and make other digital payments.
These cards are used in retail environments with point-of-sale (PoS) systems and online transactions. This card type also includes pre-paid cards with preloaded money and can be used without linking to a bank account.
Government-backed digital wallets
It is a type of mobile wallet that offers digital platforms for citizens to receive and manage benefits, subsidies, and government payments.
In addition, digital banking solutions are still emerging in the industry, such as challenger banks, robo-advisors, payment providers, peer-to-peer (P2P) lending platforms, cryptocurrency exchanges, financial aggregators, and corporate banking.
Unstructured supplementary services data (USSD) is a type of digital banking that many in this era do not use. However, UPI uses this application to make money transfers.
What are the Common Features of Digital Banking Platforms?
The following elements are some of the core features within the best digital banking software that can collectively contribute to the growth and adoption of these tools in the financial industry, enhancing customer engagement, security, and the overall banking experience:
- P2P payment interface: This dedicated platform facilitates P2P payments, which help direct fund transfers between individuals or entities within seconds. This feature also helps split bills, perform merchant transactions, make easy buys, pay for services, and send money to friends and family.
- Personal finance planning: Digital banking platforms use AI algorithms and user data to provide personalized financial insights and facilitate personal finance planning. These tailored insights, like spending patterns, investment opportunities, and budget management, empower customers to make informed financial decisions.
- Digital wallet: Digital wallets enable seamless accessibility to virtual storage systems for various payments, leading to convenient and efficient digital transactions. Due to the advent of digital wallets, financial innovations such as near-field communication (NFC) technology, cryptocurrency, and tokenized digital currencies have evolved.
- Automatic bill payments: Automating cyclic financial tasks for every individual and business entity has eased their lives. Once registered and approved for bill payments, subscriptions, and other periodic payments, these platforms automatically carry out transactions and update personal finance.
- Account and transaction management: Digital banking software enables most brick-and-mortar account management actions, such as account opening, customer onboarding, KYC validation, requesting checkbooks, deposit management, and getting account statements. APIs enable real-time transaction processing and automated workflows, which aids rapid and accurate financial transactions and enhances operational efficiency.
What are the Benefits of Digital Banking Platforms?
From automating tasks to tracking financial activities, digital banking platforms do it all. In addition, they save time, are accessible and efficient, optimize resources, and improve customer relationships. Key benefits of the best digital banking software include:
- Accessibility and convenience: Digital banking platforms allow round-the-clock accessibility, unlike brick-and-mortar banks with fixed service hours. These platforms provide the convenience of mobility, handiness, and ease of access to carry on any financial transactions on the go while providing facilities and features such as auto-debit, UPI payment solutions, and quick merchant payments as payment gateways.
- Robust security measures: Digital banking software and platforms prioritize data security and protection through advanced encryption, multi-factor authentication, and real-time fraud detection. These features instill confidence in customers by protecting and safeguarding their financial information and personal data, reducing the risk of cyber threats.
- Enhanced customer engagement: Data-driven personalization, called hyper-personalization, improves customer experience. User-friendly interfaces, customizable dashboards, self-service options, and convenient financial engagement improve customer interactions and digital engagement while fostering trust and streamlining business cross-selling opportunities.
- Global accessibility and integration: Improved cross-border transactions and global financial accessibility benefit international banking services. Globalization and seamless integration with third-party financial tools and services help customers manage their entire economic ecosystem with an omnichannel and one-stop solution.
Who Uses Digital Banking Platforms?
As physical branches become obsolete, more entities are moving towards digital banking. Some of the personas who use these tools are:
- Individual consumers: Individual consumers (banked and unbanked) use digital banking to manage their accounts, make P2P payments, pay bills, transfer funds, and access investment accounts. Managing personal finances on a finger tap has made digital banking popular and financial services more accessible.
- Businesses and merchants: Mobile cheque deposits, minimum overdraft fees, reduced interest rates, and efficient transactions have attracted businesses and merchants towards digital banking platforms. Small businesses, large enterprises, and proprietary merchants utilize these platforms for payroll processing, monitoring and managing cash flow, making supplier payments (via accounts payable automation), and handling other business finances.
- Investors and traders: Third-party integrations of financial tools have made digital banking platforms a complete ecosystem. Several digital banking tools provide facilities to manage investment portfolios, access stock markets, allow wealth management, and make trades or investments. As the trend continues, the elderly, tech-savvy people, international travelers, entrepreneurs, students, startups, and freelancers with mobile phones can access digital banking platforms.
Digital Banking Platforms’ pricing models
Understanding the pricing models of digital banking platforms is crucial to aligning costs with operational and financial strategies. Here are some common pricing models:
Subscription-based model
This pricing model charges a recurring fee, either monthly or annually, based on the number of users. It offers predictable costs and often comes with customer support and regular software updates. Institutions can scale up or down as their user base changes, aligning costs with usage patterns.
Per-transaction pricing
Costs are determined by the volume of transactions processed through the platform. This model suits organizations with variable transaction volumes, aligning costs directly with business activity. Savings during low-transaction periods are normal, but costs may increase during peak times, which should be foreseen using the right budgeting and forecasting tools.
Tiered pricing
Offers different levels of service at increasing price points. Each tier typically provides a set of features, from basic functionalities to comprehensive packages with advanced tools. This model provides flexibility for institutions to upgrade as their requirements evolve or as they grow.
One-time license fee
Some platforms offer a one-time fee for a permanent software license. While this can appear as a large upfront cost, it eliminates ongoing subscription fees, making it a cost-effective option in the long term. However, it may exclude regular updates or require additional upgrades and technical support fees.
Revenue share
In this model, the provider receives a percentage of the bank's revenue from digital banking services. This aligns the provider’s incentives with the institution's success, fostering a collaborative relationship. However, institutions must carefully assess the potential cost implications if digital banking revenue scales significantly.
Freemium model
Platforms offer a basic set of features for free, with premium features available at a cost. This model allows organizations to test the platform's core functionalities before committing financially. Institutions can opt for premium features that support more complex demands as needs grow.
Challenges with Digital Banking Platforms
Every software platform comes with its own set of challenges. A few of the key challenges include the following:
- Customer education: Educating customers about the platform's usage is essential in a digital world. Several banking customers tend to lose their money to fraud and mistaken transactions due to a lack of awareness. Some customers remain hesitant to fully embrace digital platforms due to concerns about data privacy, technology glitches, or a lack of familiarity with digital banking tools. Hence, it is vital to maintain trust and educate customers regarding each feature, product, and service of the platform while demarcating its pros and cons.
- Cybersecurity vulnerabilities: With massive digital transactions, traditional fraud or scam monitoring services must catch up to the modern cybersecurity challenges that banking institutions face. As these platforms handle sensitive financial information, robust security measures are imperative. Implementing cutting-edge encryption, multi-factor authentication, and continuous security updates is essential for risk mitigation and maintaining customer trust.
- Regulatory compliance: Digital banking is new and quickly evolving, making it challenging to keep up with constantly updating regulations and compliance measures. Adhering to stringent compliance requirements across geographies and jurisdictions demands significant resources and expertise. Failure to meet these standards can lead to legal penalties, reputational damage, and operational disruptions.
How to Buy Digital Banking Platforms
Requirements Gathering (RFI/RFP) for Digital Banking Platforms
For the product to align with the customer’s needs, buyers must consider vendors who offer the following functionality:
- Facilitate delivery of multi-channel digital banking services
- Offer built-in customer service and engagement features
- Handle loan and non-loan-related product delivery
- Provide pre-built integrations with existing third-party systems and tangential financial services solutions
Compare Digital Banking Platform Products
Create a long list
When creating the long list, the buyer must take into account factors such as the intended target market, the variety of banking features available for financial transactions, desired services to be provided to consumers, the platform's regional regulatory compliance, customer experience, access to third-party integration tools, and other attributes in alignment with their customer base and industry functionalities.
Create a shortlist
After careful consideration, each vendor's offerings should be strictly categorized, which will help to create a shortlist.
Matching customer desire with platform features is crucial to reducing the funnel to fewer vendors. According to G2, it's a good idea to have a minimum of 8 to 10 vendors who have been shortlisted based on their offers, client reviews, digital banking experience, and price (which is displayed on the website before negotiation).
Technology review platforms such as G2.com provide unbiased reviews and different comparative perspectives on the software platform.
Conduct demos
A digital banking platform would often be adopted by a bank (to shift from the traditional banking model) or a fintech company (to provide financial services).
Therefore, these entities act as buyers who must have the initial look and feel of the platform before white labeling an existing product from the vendor or creating a platform from scratch specifically designed to meet the needs of the bank or a fintech company. This enables the buyer to ensure that the solution answers the buyer's needs and to assess employees and users for ease of use.
As it is a testing phase, this can help identify potential threats, loopholes, and glitches in the software platform. It also gives a clear business plan for the software implementation, product milestones, and schedule during the platform's development, testing, and go-live phases.
Selection of Digital Banking Platforms
Choose a selection team
Considering a digital banking platform to be a shift from the traditional banking model or a fintech company, the selection team shall consist of:
- The managing director and board of directors
- Chief operating officer for allocating resources to organize the new model.
- Chief risk and compliance officer for monitoring risk and regulatory compliance as banks are sensitive and should adhere to many rules and regulations.
- Head of investments or chief investment officer (sometimes the financial manager) for monitoring risks, returns, and finances for such significant investments.
- HR head for working on internal changes associated with bringing a new business unit into a banking structure.
- Business units and account heads, from lending to investments to savings, must be consulted on the viability of the digital banking platform against the current business model.
Negotiation
Negotiating the purchase of software involves a structured three-step process:
- Preparation: Begin by outlining requirements for the top three software vendors and detailing software specifications. This initial step allows vendors to offer cost estimates for the entire product, often called the first offer.
- Bargaining: Every software implementation needs bargaining based on additional features and facilities from the vendor for the setup process and post-software product sale.
- Closing: After discussions with vendors regarding features, workflows, and best practices, the vendor presents the final offer. The buyer's decision is based on a comprehensive evaluation of the top three vendors, considering pricing, vendor reputation, size, and capabilities, especially if a long-term partnership is sought.
This structured negotiation approach ensures a well-informed and strategic decision in acquiring software products, optimizing the potential for a successful and mutually beneficial partnership.
Final decision
The buyer will utilize the digital banking platform as a crucial instrument and cornerstone of day-to-day business operations.
Therefore, the managing director with the board of directors, along with the rest of the selection team mentioned above, will make the final decision while considering the reviews, recommendations, and suggestions of the platform's alpha and beta testers, who are quite often the bank's customers and employees.
How to Implement Digital Banking Platforms
The successful implementation of the best digital banking platforms requires a seamless transition and effective integration into current systems. It involves the following steps:
Needs assessment
Begin by comprehensively analyzing current banking processes to identify specific needs. This involves evaluating existing operations and pinpointing inefficiencies that a digital system could address. Clearly define the objectives and expected outcomes of the implementation to align the platform with business goals.
Platform selection
Carefully select a digital banking platform by comparing vendors based on critical factors such as user interface, scalability for growth, and security features. Make sure the platform complies with all relevant industry regulations and involves key stakeholders to gain insights and approval across departments.
Implementation planning
Develop a detailed implementation strategy with a realistic timeline and resource allocation plan. Collaborate closely with the chosen vendor to set up the necessary infrastructure and ensure integration with existing systems. Customization may be required to tailor the platform to specific institutional needs and iterations.
Testing
Conduct in-depth testing to verify the platform's functionality, security, and reliability before full deployment. This includes performing system testing to check the operations of all features, security checks to safeguard against vulnerabilities, and user acceptance testing (UAT) to obtain feedback from end-users.
Training and education
Implement a robust training program for employees to familiarize them with new digital tools and processes. This may include workshops, manuals, and online resources. Simultaneously, communicate effectively with customers through multiple channels to inform them of new features and how these changes enhance their banking experience.
Support and feedback
Establish comprehensive support mechanisms to assist users when issues arise, ensuring quick resolution and minimal disruption. Implement a feedback loop to gather user input, refining the digital banking experience continuously.
Digital Banking Trends
- Artificial intelligence and machine learning: Banks are implementing AI and ML to enhance customer experiences by providing personalized services, predictive analytics, and AI chatbots for customer support. These technologies also enable efficiency in decision-making processes, helping banks offer tailored solutions to meet diverse needs.
- Open banking and API integration: Open banking allows third-party developers to build applications and services around a financial institution's data. Through API integration, banks can seamlessly connect with fintech solutions, broaden their services, and provide enhanced online experiences.
- Mobile-first banking solutions: Banks prioritize mobile-first strategies to provide customers with convenient and comprehensive banking experiences. This includes mobile banking apps with features like mobile payments, account management, and instant notifications, delivering banking services on the go to customers.
Researched and written by Samarth Bhat
