The term "digital bank" has different meanings to different stakeholders. Consumers enjoy the convenience and innovation that digital banking offers. Digital banking is better for financial institutions, including banks, in terms of customer satisfaction, business efficiency, and operational effectiveness. Data flow becomes more manageable, easier to control, and is more monitored for regulators. In other words, digital banking means better customer engagement, profitability, and control.

The concept of a digital bank is to allow customers the ability to bank by phone, computer or ATM. This allows the user to never have to walk into a brick and mortar location ever again. It also offers features that are not available in traditional banks like peer-to-peer transfers and real-time account information.

Digital banking is changing the landscape of how people deposit, withdraw, and transfer funds.

Digital banks are a type of bank that operates exclusively online. They use electronic banking, mobile banking and internet banking to provide services to their customers. For instance, instead of going into the branch and talking to a teller face-to-face, digital bank customers can make deposits or withdraw money with their phone or tablet while sitting in the comfort of their home.

A digital bank is a financial institution that operates exclusively online, without physical branches, offering banking services through digital platforms such as mobile apps and websites. It leverages advanced technologies like artificial intelligence, blockchain, and cloud computing to provide seamless, efficient, and user-friendly experiences. Customers can perform transactions, manage accounts, apply for loans, and access financial products anytime, anywhere. Digital banks often have lower operational costs compared to traditional banks, enabling them to offer competitive rates, lower fees, and innovative services. They cater to tech-savvy customers seeking convenience, speed, and personalized financial solutions. Examples include Chime, Revolut, and N26. While digital banks provide greater accessibility, they also face challenges such as cybersecurity risks and regulatory compliance. Their rise reflects the growing demand for digital-first financial services in a connected world.