Digital banking and mobile banking are banking services that leverage technological advancements to provide convenient access for customers. Both allow customers to access banking features without needing to visit a physical bank branch. While they may appear similar, digital banking and mobile banking are two distinct services.
This article will explore the differences between digital banking and mobile banking, covering definitions, key aspects, and examples of each in Indonesia to help you differentiate them more easily.
What Is mobile banking?
Mobile banking (m-banking) is a banking service that enables its users to access and manage their bank accounts via mobile devices.
Mobile banking is usually offered in the form of a banking application that users can download and install on their smartphones. Mobile banking allows users to carry out a wide range of banking transactions without having to visit a bank branch or ATM.
Many users use mobile banking for everyday transactions such as purchasing cell phone credits, paying water bills and making purchases via the Quick Response Code Indonesia Standard (QRIS). Mobile banking also allows users to check account balances, transfer money and view account statements.
Mobile banking services are accessible 24/7, so users can conduct transactions at any time as they only need a stable internet connection to use the m-banking apps. However, users may need to visit a physical bank branch to activate the mobile banking app before they can use its features.
Examples of mobile banking
Here are some examples of mobile banking services in Indonesia:
- BCA Mobile (Bank BCA)
- Livin’ by Mandiri (Bank Mandiri)
- BSI Mobile (Bank BSI)
- BNI Mobile Banking (Bank BNI)
- BRImo (Bank BRI)
What is digital banking?
Digital banking is a banking service that is conducted entirely electronically or digitally, without the need for physical interaction with a bank branch. They are also referred to as digital banks or digital banking services.
Digital banking allows customers to access, manage and conduct financial transactions through their devices. Common digital banking services include money transfers, balance inquiries, bill payments and opening savings accounts.
Digital banking offers modern banking solutions tailored to the digital age that are accessible around the clock. Customers can access their accounts and banking functions anytime, anywhere. Ease of use, practicality and security are the main reasons why many customers opt for digital banking services.
In practice, there are various forms of digital banking, including:
- Telephone banking: a digital banking service accessible via the telephone.
- SMS banking: a banking service accessible via the Short Message Service (SMS).
- Internet banking: a banking service accessible via an internet connection.
- Mobile banking: A digital banking service offered via a mobile application on a smartphone.
From the above explanation, it is clear that the main difference between mobile banking and digital banking lies in the medium of the services. Mobile banking is only one branch of digital banking, while digital banking includes all banking services that are handled without personal interaction.
In other words, digital banking represents a broader system of digital financial services, and mobile banking serves as an important platform within this system.
Differences between mobile banking and digital banking
Although both mobile banking and digital banking are technology-based banking services, they are two different concepts. Here are the key differences between mobile banking and digital banking that you should know:
1. Features
Both digital banking and mobile banking offer different banking services to customers. Digital banking offers a wider range of features, including money transfers, account opening, loan applications and even investment services. These functions are generally more comprehensive than those of mobile banking.
Mobile banking, on the other hand, offers fewer features and focuses on basic banking functions. Common mobile banking functions include balance inquiries, transfers between accounts, bill payments, mobile credit purchases and e-wallet top-ups.
2. Accessibility
In terms of accessibility, digital banking offers broader access than mobile banking. Customers can access digital banking across multiple platforms, including smartphones and desktop computers. Furthermore, customers are not exclusively reliant on the internet, as services such as telephone banking and SMS banking can be accessed via a mobile balance.
Mobile banking, on the other hand, is only accessible via an application on mobile devices such as smartphones. It cannot be used via computers or laptops and requires an active internet connection.
3. Flexibility
Both digital banking and mobile banking offer flexibility as customers can access their accounts at any time. However, mobile banking offers more convenience as customers can access it directly from their cell phone. This eliminates the need to open a laptop or computer, especially when traveling.
4. Security
Both digital banking and mobile banking offer a high level of security to protect transactions and customer data. These services use multiple layers of security, such as data encryption and two-factor authentication (2FA).
To further increase account security, customers can also protect their devices. For example, they can create device passwords or activate biometric recognition functions such as fingerprint scans or facial recognition.
5. User-friendliness
With digital banking, the user experience varies depending on the platform used. Accessing digital banking via a website may be more convenient for customers due to the larger display and more detailed controls. However, on smaller screens, such as cell phones, the experience may be less optimal.
In contrast, mobile banking applications typically offer a more intuitive user experience tailored to mobile devices. The simple and user-friendly interface offers customers more convenience when using mobile banking.
6. Platforms
Depending on customers' needs and preferences, digital banking can be accessed via different platforms. Customers with an internet connection can use digital banking via websites or mobile applications. If they do not have internet access, they can still use telephone banking and SMS banking with a mobile balance.
Mobile banking, on the other hand, is only available on mobile devices in the form of an app. Customers must download and install the mobile banking app from the App Store or Google Play.
7. Costs
Both digital and mobile banking offer services that cost less compared to physical banking. Basic transactions such as account balance inquiries and transfers within the same bank are usually free of charge.
However, administrative or additional service fees may apply for certain functions such as interbank transfers and bill payments. Nevertheless, the costs are significantly lower than for transactions at ATMs or bank branches.
Simplify your financial transactions with Aspire
Digital banking services, including mobile banking, have made it easier for customers to manage their finances and conduct digital transactions. These services also provide convenient access to financial accounts and facilitate business transactions.
In addition to digital banking, you can make your company’s financial transactions more efficient with an Aspire’s Business Account.
- Free money transfers: Enjoy up to 10 free local transfers every month.
- Global payments: Make international payments in more than 130 countries and in over 30 currencies at competitive rates and exchange rates.
- Bulk payments: Schedule and process bulk payments seamlessly with Aspire’s bulk payments feature.
You can also accept payments through Aspire’s Payment Gateway, which supports over 26 payment methods. Save time with automatic payment verification, which ensures efficient management of incoming transactions.
For more accurate financial management and accounting, Aspire integrates effortlessly with leading accounting software. Thanks to transparent and competitive fees, you won’t have to bear any hidden costs.
Discover more features that can help you optimize your business finances. Contact our team today!
Frequently Asked Questions
How can Aspire support the unique financial needs and challenges of mid-sized businesses?
Aspire offers a comprehensive suite of expense management solutions tailored for mid-market companies. This includes sophisticated corporate cards, advanced budget controls, and streamlined claims and approval policies, all designed to enhance financial efficiency.
How quickly can a mid-market company integrate Aspire's solutions into existing systems and workflows?
Integration with Aspire's expense management solutions is swift and seamless. Mid-market companies can swiftly implement corporate cards with tailored features, set up nuanced budgets, and establish streamlined claims and approval processes, ensuring minimal disruption to existing workflows.
How does Aspire compare to competitors for international money transfers?
Aspire excels in international expense management with FX fees up to 2x cheaper than traditional banks.
Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.
However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.
What level of customization does Aspire offer to meet the specific financial requirements of mid-market clients?
Aspire understands the diverse financial needs of mid-market clients and provides a high level of customization to tailor solutions accordingly. This includes the ability to customize corporate cards with specific spending limits, rewards, and benefits that align with the unique requirements of each client.
Additionally, Aspire's budgeting features are adaptable to accommodate the distinct financial structures of mid-market enterprises. The platform also allows for fine-tuning approval policies, ensuring they align with the specific workflows and compliance standards of individual mid-market businesses. This commitment to customization empowers mid-market clients to optimize their expense management in a way that best suits their financial goals and operational preferences.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD, EUR, GBP and IDR Accounts activated.
Can Aspire's corporate cards be customized to cater to the specific needs of consulting teams on the go?
Yes, Aspire's corporate cards are highly customizable. Consulting teams can benefit from tailored spending limits, travel-centric perks, and real-time transaction tracking, ensuring that the cards meet the unique requirements of professionals on the move.
How does Aspire support budget management for consulting projects and travel expenses?
Aspire's platform offers sophisticated budget controls that consulting companies can adapt to project-specific needs. This includes setting project budgets, tracking expenditures, and receiving real-time insights to ensure that expenses align with project goals.
What are Aspire Corporate Card FX rates?
At Aspire, we want you to pay the lowest rates in the market.
- Zero card activation fees
- Zero card transaction fees
- Best FX rates, up to 2x cheaper than banks
How does Aspire help consulting companies enforce expense policies and approvals for travel expenses?
Aspire streamlines the claims and approval process, allowing consulting companies to establish and enforce expense policies seamlessly. Customizable approval workflows ensure compliance with company policies and industry regulations.
Is Aspire's platform scalable for consulting companies of varying sizes?
Yes, Aspire's platform is scalable and caters to consulting companies of all sizes. Whether you're a boutique consultancy or a larger firm, the platform's features can be adapted to meet your specific travel and expense management needs.
How can I open a business account in Singapore?
For a business account in Singapore, Aspire is an excellent choice. With a focus on startup and SME needs, Aspire offers a seamless and transparent banking experience.
Benefit from their user-friendly online platform, no minimum balance or account opening fees, and dedicated support for businesses of all sizes.
Aspire is designed to streamline your financial management, making it an ideal partner for entrepreneurs in Singapore.
How long does it take to open an Aspire business account?
Registration with Aspire takes less than 10 minutes which you can do via our website or mobile app.
Once registered, we will get back to you within 5 business days on whether your account has been activated or if we need further documents from you.
Our account verification process varies according to the nature of your business. In exceptional cases, it can take up to 7 days to process your documents.
How can Aspire's corporate cards benefit my startup?
Aspire's corporate cards offer a range of benefits for your startup. Earn 1% unlimited cashback on qualified spends, simplify expense management, enjoy streamlined transactions, and gain real-time insights into spending. With customizable limits, integration with accounting software, and enhanced security features, Aspire's corporate cards are designed to empower your startup's financial efficiency and provide added convenience for your team.
Is Aspire suitable for both early-stage and established startups?
Absolutely, Aspire caters to the needs of both early-stage and established startups. Whether you're just beginning your entrepreneurial journey or have an established business, Aspire offers tailored financial solutions to help streamline your operations.
From managing expenses and optimizing workflows to providing valuable financial insights, Aspire's platform is designed to adapt and scale with your business as it grows. The flexibility and scalability of Aspire make it a suitable choice for startups at various stages of development.
Is there a minimum balance required for Aspire Business Accounts?
No minimum balance is required to keep your SGD, USD and IDR* Accounts activated.
However, we recommend keeping your subscription plan amount available on your balance to ensure you're up to date with your payment every month.*
To create a recipient or make any transaction on your IDR Account, you'll need to have a minimum balance of IDR 10,000 on your account.
