Digital Banking Solutions for SMBs

By TechFunnel Contributors - Published on October 30, 2020
Article explains the types of digital banking solutions

Figuring out the right kind of digital banking solutions for your small and medium businesses can be a hassle. The banking industry is gradually becoming complex due to mobile banking and personalized services. In this article, we’ll discuss what type of options are available for SMBs when it comes to finding the right fit with digital banking solutions.

Types of Digital Banking Solutions

  1. Core Banking

    Core banking is a type of banking service that’s provided by a networked group of bank branches where customers can access their bank accounts from any of the group of branch offices. Core banking services include: floating new accounts, servicing loans, calculating interests, processing deposits and withdrawals, and customer relationship management activities.

  2. Mobile Banking

    This type of banking has been dominating the banking industry in the 21st century. Banks offer mobile banking so customers can remotely access their accounts and conduct other financial transactions through a mobile device or tablet. For more information about mobile banking check out our other article here.

  3. Internet Banking

    Just like mobile banking, but on a bigger screen. Customers can have access to their bank through the bank’s website and conduct transactions. Although both platforms are similar to use in digital banking, online banking heavily relies on the internet more than mobile banking.

  4. Doorstep Banking

    Doorstep Banking, or DSB, is a service that provides customers with cash deposits, withdrawals, cheque deposits, or making demand drafts. This can all be done through a facility provided by your bank as it can save you from making a trip to one of the local branches to conduct routine banking activities.

  5. Cheque Truncation System

    Another type of system commonly used in India. The Cheque Truncation System uses an image-based clearing system to clear out cheques faster. This makes the physical transfers of cheques to process quickly and clear up any frauds or any misplaced cheques within transit.

  6. Enterprise Reporting

    With enterprise reporting, you are extracting, processing, organizing, analyzing, and displaying data within a company. To organize data into charts, tables, and other visualizations, companies use enterprise reporting tools to execute such tasks.

  7. Data Archival and Retrieval

    Data archiving is when data that’s no longer actively used gets moved to a separate storage device for long term retention. Hence, data archival. As for retrievals, data that’s archived are indexed and have searching capabilities, which is how they are located and retrieved.

  8. Anti-Money Laundering

    Also known as AML. This refers to financial regulations and procedures that prevent anyone from committing crimes such as money laundering. With anti-money laundering money laws, people cannot disguise illegally obtained funds and claim it as legitimate income. They can also enforce a limited range of transactions and overlook any type of illegal financial activity.

  9. Mandate Management System

    This type of solution is designed to help create, amend, and cancel mandates for NACH debit and credit transactions. It’s an online system that handles incoming data from one destination to another after the data has been processed and validated by the NPCI. This type of solution is commonly used in India and is also known by the term, MMS.

( Also Read: What Is Digital Banking: Definitions, Benefits, and the Future )

Enabling the Transformation of Digital Banking

Once you get the hang of understanding the idea of digital banking, it’s time to cover solutions that will help transform digital banking into your company.

  • Integration of the Ecosystem

    One way that digital banking can be applied is through the ecosystem. Because it’s not commonly practiced in the U.S. or U.K., it has challenges of being adopted into transforming digital banking. However, countries that do integrate financial ecosystems benefit from it due to these following values:

    1. Reduction of friction between related services
    2. Leverage of network effects
    3. Integration of customer data across a series of services

    Because of these values, banking ecosystems have successfully expanded and flourished. For more information, read more about innovative financial ecosystems here.

  • Optimize Operations

    Another way to implement digital marketing is through the optimization of your operations. It’s obvious that customers receive satisfaction with digital banking because of how convenient it is. Because of this, optimizing digital banking with operating models will run successfully within different industries, business lines, and regions. According to the Boston Consulting Group, there are three different operation models that your company can follow:

    1. Digital as Business as Usual Plus
    2. Digital as New Line of Business
    3. Digital Native 
  • Reinvent Your Customer Journey

    The fastest way to keep the satisfaction of customers is to comply with their needs. In this case, digital banking has reinvented how customers shop online. Through digitization, bank providers have to figure out how to improve customer experience. Creating a digital version of this said journey creates an increase with cross-selling and relationship building, which can save you some big bucks.

  • Leveraging Data

    When you enable digital banking, you’re also using the power of data analytics. Using this to your advantage will help you recognize any errors and create solutions for your consumers. The main goal is to understand the wants and needs of consumers, hence why the power of using data can be of great use to you. According to the Boston Consulting Group, “Data mining can help banks and credit unions reinvent themselves as partners that offer highly tailored solutions to their clients, rather than suppliers trying to push products that might not match consumer needs.”

  • Meeting Regulatory Requirements

    When making changes and improvements, it’s important to apply consistency. When you meet regulatory requirements in digital banking, it’s just as similar when you meet a set of policy guidelines for a company or organization. One way to implement these ideas is to learn from fintech companies to see how each one has the ability to meet regulatory requirements when it comes to digital banking.

  • Build A Digital Driven Organization

    Lastly, one of the biggest transformations you can do with digital banking is to establish an organization that’s digitally driven. After all, this is a digital age where it’s common to treat digital features as a priority. When setting up an organization like this, you need to have the following components: articulated strategies, funding, talent, agile working habits, and organizational culture that isn’t afraid of taking risks. Despite the amount of work and effort put into this, we can assure you that it’s worth the risk. When banks begin to digitize, it’s been said that they have the ability to achieve a 20% in revenues and a 30% decline in expenses.

Benefits for Your Business By Digital Banking

  • It’s Faster to Market

    When marketing digital banking, you’re increasing the number of engagements and revenue of your SMB. There are plenty of digital banking platforms that are available just to prove it.

  • Provides Great Convenience and Efficiency

    Due to its convenient 24/7 access, digital banking will improve the efficiency of your SMB. Installing this feature into your SMB will definitely change up the game for your business, especially when higher transaction activity will most likely occur.

  • Drives more collaborations with Open APIs

    Fintechs are becoming more open to collaboration with banks. It’s seen as an opportunity to connect and strengthen relationships between banks and businesses because it will enhance payments and the reputation of corporate services.

  • Manageable Growth with Proven Scalability

    With more digital banking solutions, your SMB will make the use of IT being less complicated and more flexible in growth. Because of increased revenue, your SMB scalability will go up. Another perk about digital banking solutions is manageable growth, which becomes easier once you seek the right digital banking solution for your SMB.

Final Thoughts

By now, you have an understanding that banking providers in the small and medium business market continue to make critical baby steps in converting into the digital world. However, this doesn’t stop banks from providing digital banking solutions. When there’s a will, there’s away.

Hence, there are plenty of options when it comes to struggling SMBs that hold uncertainty about what’s the best way to effectively bank.  Just remember that in the end, there are plenty of benefits that come with digital banking solutions. It’s convenient and sustains performance in profitability. What more can ask for?


Aileen Padua is an aspiring social media coordinator. She is currently majoring in Advertising at Fresno State University. With her understanding about the power of social media, Aileen is passionate about preserving and enhancing the image of one’s reputation in the public eye.

TechFunnel Contributors | is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicated to sharing unbiased information, research, and expert commentary that helps executives and professionals stay on top of the rapidly evolving marketplace, leverage technology for productivity, and add value to their knowledge base.

TechFunnel Contributors | is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicate...

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