Originated around the earlier 2000’s, digital banks have became a new trend in the banking industry across both developing and developed countries. Equally, digital banking is also considered the ideal solution to help radically improve the customer experience commonly associated with traditional financial institutions. However, the concept of digital banking is still somewhat alien to people in Vietnam.

What is a digital bank?

Most of us are probably familiar with the concept of traditional banks offering branches and transaction offices at different locations for customers to come and carry out their banking transactions.

Unlike traditional banks, digital banks allow customers to carry out the majority of regular banking transactions online via the Internet. Instead of having to visit a bank branch or office to make transactions, all transactions are digitized and can be done online, from applying for a new bank account to opening a savings account, getting an overdraft loan, etc.

Digital banking is becoming more popular in Vietnam as all procedures and even fees associated with digital banking services and products are minimized. This helps customer to save a lot of time as they would only need a mobile phone with Internet connection to manage their bank account and make any bank transaction they need via the digital bank’s official website or mobile app. Unlike traditional banks, digital banks have little to no branches. However, there are still offices where customers can visit to collect their cards, deposit money into their accounts or get advice from banking representatives.

Benefits of digital banking

1/ All payments and transactions can be done conveniently

With either a phone or a laptop connected to the Internet, you can carry out any transaction with digital banks anytime and anywhere, whether at home, in the office or even abroad. All transactions from basic to extended levels, such as checking your account balance, transferring money, paying bills, opening savings accounts, etc., can easily be done on the digital bank’s official website or mobile app. You will not have to worry about arranging time to visit its office to carry out your transactions.

2/ Fees are minimized

Not only do digital banks help customers to save time and effort, fees are also minimized.

To enhance customer experience, many digital banks in the market have minimized different types of fees associated with banking, such as: money transfer fees, ATM withdrawal fees, account maintenance fees, etc with the aim of encouraging transactions online.

3/ High accuracy

Built on the foundation of internet and information technology, digital banks handle and record transactions more quickly and accurately. All activities that arise from the process of a transaction being made would be handled quickly and fully recorded in the system with absolute accuracy.

4/ High security

As a digital bank is built on the basis of letting customers perform most transactions via the Internet, information and account, careful attention is paid to security of digital banks. This is also why most mobile apps provided by digital banks are built with multiple layers of protection such as OTP/iOTP, instant notifications of transactions, etc, to ensure all transactions made are authorized and secure.