Comparing Digital and Electronic Banks, Which One Should You Choose 2023

I. The definition of digital banking and e-banking

Digital Banking:

Digital banking is a form of banking activity based on digital technology, in which financial transactions are carried out through online channels and electronic applications.

Digital banking provides customers with financial services such as account opening, deposit, withdrawal, transfer, bill payment and asset management through electronic platforms and applications.

Digital banking features and benefits include:

• Convenience: Customers can perform financial transactions anytime, anywhere via mobile phones, computers or internet-connected devices.
• Save time: Customers do not need to go to a traditional bank to make transactions, saving time and effort.
• Fast transactions: Transactions through digital banks are processed instantly or in a short time, helping customers access cash and financial services quickly.
• Financial tracking: Customers can easily check and manage their accounts, transaction history and assets through online applications and interfaces.
• Customized services: Digital banks often provide customized financial services based on the personal information and habits of their customers, helping to provide a personalized experience.

E-Banking:

Electronic banking is a broader concept that includes all banking activities carried out through electronic means, including both traditional and digital banking.

This includes the use of electronic means such as credit cards, debit cards, POS (Point of Sale) machines, Internet access and online banking services.

E-banking offers a wide range of services such as:

1. Online financial transactions: Customers can perform financial transactions such as wire transfers, pay bills, buy and sell securities, and send/receive money through banking apps and websites.
2. Credit and debit cards: Customers can use credit or debit cards to make transactions online or at card-accepting points.
3. POS machines: Merchants can use POS machines to accept credit or debit card payments from customers.
4. Financial management services: Electronic banking provides tools and services for personal financial management, including account tracking, budget and savings management, and financial planning.

II. Difference between digital banking and e-banking

2.1. The same point

Similarities between digital banking and e-banking can be mentioned as follows:

• Providing online financial services: Both digital banking and e-banking allow customers to access financial services and conduct transactions through online platforms. Customers can perform transactions such as transferring funds, paying bills, checking balances, and more. from anywhere and at any time.
• Time saving and convenience: Both help customers save time and effort compared to having to go to a traditional bank. Customers can make transactions quickly and conveniently through mobile applications or banking websites.
• Personal Financial Management: Together they provide the tools and features for customers to manage their personal finances. Customers can monitor account balances, view transaction history, create budgets, and receive financial alerts to give them an overview of their finances.

2.2. Differences

However, there are still many differences between digital banking and e-banking such as:

• Scope of Service: E-banking usually only provides basic services such as money transfer, bill payment and balance checking. Meanwhile, digital banking offers a range of more sophisticated financial services such as investing, borrowing, insurance, wealth management, and more.
• Organizational structure: A digital bank is usually an independent online bank that exists entirely on a digital platform and has no physical branches. Whereas, e-banking can be part of a traditional bank and can have both a physical branch and an online platform.
• Interaction with customers: E-banking often creates a relatively simple interaction channel, mainly through online interface and mobile application. Meanwhile, digital banks often use more advanced technology such as artificial intelligence (AI) and chatbots to provide a more personalized and intelligent interactive experience for customers.
• Security and privacy: Both digital banking and e-banking place great emphasis on customer security and privacy. However, digital banking may require higher security measures due to its online nature and because it has to deal with more complex financial transactions.

III. Should you choose digital or electronic banking?

Choosing between digital and e-banking for your business needs depends a lot on your specific requirements and priorities. Here are some important factors to consider:

• Range of services: If your business needs more complex financial services such as loans, wealth management, investments, insurance, etc., then digital banking may be a better choice. Digital banking typically offers a diverse range of financial services and can meet the complex requirements of businesses.
• Flexibility: If your business needs great flexibility and 24/7 access to financial services from anywhere, e-banking is often the superior choice. E-banking often allows you to make transactions online and through mobile applications, which saves time and is convenient.
• Customer support: If you need personalized customer interaction and support, digital banking can provide a better experience. Some digital banks use artificial intelligence (AI) and chatbots to provide instant support and intelligently answer customer questions and strongly personalize for the best experience.
• Security and privacy: With important corporate financial transactions, security and privacy are paramount. Both digital and e-banking provide security, but digital banking may require higher security measures to secure more complex transactions.
• Technology compatibility: Before choosing, consider the compatibility of your bank with your existing systems and technology. Make sure that the digital or e-banking you choose integrates well with existing systems and workflows.

During the selection process, consider carefully researching your specific digital and e-banking options, including features, service fees, customer reviews, and bank reliability.

IV. Interactive digital banking solution of CMC TS and Backbase

To meet the needs of businesses for a convenient and modern banking solution, CMC TS has cooperated with Backbase - a technology company providing the leading digital engagement banking platform in the world. is a partner of more than 120 major global financial institutions. The advantages of the solution can be mentioned as:

4.1. Omnichannel experience optimizes customer touch points

The interactive digital banking solution of CMC TS and Backbase allows customers to interact with the bank through many different channels such as mobile applications, websites, ATMs, chatbots.

This creates a flexible and convenient experience for customers, allowing them to access financial services at any time and from anywhere.

4.2. Cost effective with core system

CMC TS and Backbase's interactive digital banking solution is built on a powerful and flexible core system.

This system helps to optimize the management and operation of the bank, while reducing costs and increasing operational efficiency.

4.3. Ready

The solution of CMC TS and Backbase ensures high availability, meeting high transaction volume and user traffic load.

The system is designed to be stable and reliable, while meeting the bank's real-time and scalability requirements.

4.4. Strong growth potential

CMC TS and Backbase's interactive digital banking solution is built to support the bank's strong growth.

The system is flexible scalability and integrates new technologies such as artificial intelligence (AI), blockchain, and Internet of Things (IoT), to meet new requirements and trends of the banking industry.

V. ABBANK cooperates with CMC TS and Backbase to transform digital banking

On April 6, 2023, An Binh Commercial Joint Stock Bank (ABBANK) signed a cooperation agreement with CMC Technology and Solutions Corporation (CMC TS) and Backbase, to transform the digital banking experience for millions of customers in Vietnam.

ABBANK has set a goal of providing customers with financial solutions tailored to their needs and convenient and friendly experiences on a modern digital platform.

In 2021, ABBANK has developed a 5-year transformation strategy, in which digital transformation is considered an important factor to achieve success in implementing the banking strategy.

ABBANK's digital transformation strategy focuses on enhancing customer experience across digital channels and consolidating digital products and services through an advanced digital banking platform.

ABBANK has also partnered with McKinsey Vietnam, a leading consulting firm in the world, to design the technology architecture and long-term implementation roadmap.

A comprehensive set of Interactive Banking Platforms including Digital Onboarding, Digital Banking, Digital Assist and Digital Engage.

By using this platform, ABBANK will be supported in multi-channel service activities, helping to increase the ability to attract and retain customers, consult and access financial services and solutions.

In addition, the platform also helps to personalize and improve customer experience through comprehensive customer identification and focus on ABBANK's retail and corporate banking businesses.

ABBANK has established a close cooperation with CMC TS, a longtime business partner and leading technology solution and service provider in Vietnam, to ensure the achievement of project objectives on time and budget.

CMC TS has experience and in-depth understanding of the banking and finance industry, as well as integrated solutions and digital transformation data.

CMC TS's team including digital banking experts and project managers, solution architects, application developers and quality management managers participated in the project to support ABBANK to build a secure and user-friendly banking platform.

With the support from CMC TS, ABBANK has built a safe and user-friendly digital banking platform and created a better user experience.

CMC TS's deep understanding of the banking and finance industry and the ability to integrate technology solutions have played an important role in meeting ABBANK's requirements and goals in the digital banking transformation. .

If your business is looking for a perfect solution like ABBANK, please contact CMC TS immediately via website cmcts.com.vn or email cmctsinfo@cmc.com.vn.