How to Launch a Digital Banking Platform?

Traditional banking is becoming outdated. People are increasingly preferring to conduct everything online, and if your bank does not provide such options, it will fail. This period of transition is also an excellent time to enter the banking industry, which has been dominated by monopolistic firms for many years. 

What is a Digital Banking Platform?

A digital banking platform is a web-based or mobile-based platform that enables users and organizations to access and manage their financial services and transactions via digital channels. It acts as a virtual interface between customers and their financial institutions, allowing them to do numerous banking transactions without having to visit a physical branch.

Key Features That Every Banking Platform Must Have

1) Account management - Customers can open new accounts, view account balances, and access transaction history.

2) Fund transfers - Users can transfer funds between accounts, make payments to other individuals or businesses, and set up recurring transactions.

3) Mobile banking - Digital banking platforms often have dedicated mobile apps that provide convenient access to banking services on smartphones and tablets.

4) Bill payments - Customers can pay their bills online, including utilities, credit cards, loans, and other recurring expenses.

5) Deposits and withdrawals - Some digital banking platforms allow customers to deposit checks remotely using mobile check deposits or make cash withdrawals at partner ATMs without a physical card.

6) Personal finance management - Many platforms offer tools to track spending, set budgets, and categorize transactions, helping users better manage their finances.

7) Alerts and notifications - Customers can receive real-time information about account activities, such as large transactions, low balances, or bill due dates.

8) Customer support - Digital banking platforms often provide customer support through chatbots, email, or phone, offering assistance with account inquiries, transaction issues, or general banking queries.

9) Security measures - Robust security measures, such as two-factor authentication, encryption, and fraud detection systems, are implemented to protect customer data and financial transactions.

10) Integrations - Some digital banking platforms integrate with third-party services, allowing customers to link external financial accounts, investments, or payment platforms for a holistic financial overview.

Overall, digital banking platforms provide users with convenience, accessibility, and flexibility, allowing them to manage their finances on the go and reducing their reliance on physical bank branches.

How To Start A Digital Banking Platform From Scratch?

Now let’s start with building a digital banking platform from scratch. To set up this process, you will need to go through several steps:

Step 1- Market Research

During this phase, you must conduct research on your competitors and target market. You can choose the best features and technologies for your platform if you can ensure that your customers are satisfied and that you stand out in the industry.

Step 2- Planning

After researching the market and analyzing the results of your research, you can begin formulating a strategy for company expansion. You must create a business plan right now.

Step 3-  UI/UX and Prototype

The main goal of this step is to design your open banking platform's user interface and make it easy to navigate. You will eventually have a finished design.

Step 4- Security

Your team should now concentrate on the security of your financial platform and decide how to supply it. Data encryption and two-factor authentication are couple of instances.

Step 5- Development

In this step, your developers start working on your online banking platform. Your team must also set up the third-party connectors required to execute your product.

Step 6- Market Launch

The final step is to launch your online banking platform. At this step, your team assesses the amount of user acceptance of the offering and brainstorms improvements.

Step 7- Enhancement

The final stage never finishes. In this case, you must push out platform updates, add new features, or improve existing ones.

What is the difference between online banking and digital banking?

The terms "online banking" and "digital banking" are sometimes used interchangeably, although there is a distinction to be made:

Online Banking: Online banking refers to banking operations and services that take place through the Internet. It entails logging into your bank account using a web browser on a PC or laptop. It largely focuses on the capacity to conduct banking transactions remotely via computer and internet connection.


Digital Banking: The term "digital banking" refers to a broader notion that includes more than just online banking. It refers to the use of digital technology to provide a variety of banking services and experiences, such as mobile apps, smartphones, tablets, and other digital platforms. Digital banking strives to provide a unified and complete approach to banking that makes use of digital technologies.

Conclusion

Lastly, a digital banking platform is a mobile-based platform that allows individuals and organizations to access and manage financial services and transactions via digital channels. As technology advances, digital banking platforms will become increasingly important in influencing the future of banking.