In 2024, competition between digital payment platforms and traditional banks became fiercer than ever. The growing demand for convenience, efficiency, and cutting-edge technology has established online banking solutions as leaders in the ever-evolving FinTech world.
In this article, we explore the advantages of digital payment solutions over traditional banks and introduce the best online banking platforms on which you can build your own PayTech product.
An online banking platform is a pre-built payment software designed to provide the foundation and tools needed to develop and operate modern banking solutions, including neobanks and other financial systems.
Online banking platforms provide a comprehensive set of features and capabilities that enable organizations to efficiently set up, manage and scale their digital banking services. In our article on a digital banking platform development you can find more details about must-have features of this platform.
The main difference between online banks and traditional banks lies in the way they operate and offer their services:
The choice between the two depends on individual preferences in terms of accessibility and level of personal interaction.
| Aspect | Online Banks | Traditional Banks |
| Physical presence | Limited or none | Branches and ATMs |
| Accessibility | 24/7 access online/mobile | Limited hours of operation |
| Account Fees | Lower or no fees | May have monthly fees |
| Technology & features | Digital applications | Traditional banking tools |
| Security | Strong online security | Physical security focus |
| Customer service | Mostly online/phone | In-person and phone |
| Convenience | Users can perform transactions 24/7 | Financial operations limited by the bank’s operating hours |
| Transaction processing speed | Faster | May be slower |
| Overhead costs | Lower | Higher |
Online banking and traditional banking services each have their own strengths and weaknesses. Online banking offers the convenience of 24/7 access, allowing customers to efficiently manage their finances from any spot with an Internet connection. Transactions are processed quickly, allowing users to easily check their account balances, transfer funds, and make electronic payments.
In contrast, traditional banks offer the advantage of handling more complicated banking transactions face-to-face with bank representatives. However, it’s important to note that traditional banks may not offer the same robust security measures as online banks.
Digital banking software offers a variety of benefits for both financial institutions and their customers. In the following section, we highlight the key benefits of the digital banking platforms for payment companies:
Pre-developed online banking platforms significantly speed up the development process for payment companies. They provide a foundation of pre-built software and functionality, eliminating the need to develop complex financial systems from scratch.
Using pre-developed online banking software can result in significant cost savings. These platforms often have a set of built-in features, reducing the need for extensive custom development and the associated costs.
By streamlining the development process, payment service providers can bring their products and services to market much faster. This agility is critical in the competitive financial technology landscape. For example, the modular structure of online banking software facilitates quicker development cycles, enabling companies to launch new products and services faster.
Many pre-developed banking platforms are designed to grow seamlessly as your business grows. They provide the flexibility to adapt to changing user needs and transaction volumes without requiring major overhauls. As customer expectations evolve, scalable online banking software allows financial institutions to adapt, ensuring a seamless user experience regardless of the scale of operations
Reputable online banking platforms have robust security features, including encryption, compliance with industry standards, and fraud detection mechanisms that provide a safe environment for financial transactions.
While these platforms are pre-built, they are often highly customizable to meet your specific business needs, brand identity, and unique requirements.
By using pre-developed platforms, companies can minimize the need for extensive setup and staff training in software development, saving time and resources.
Let’s dive into some of the best online banking platforms available in the market and explore their unique features.
The SDK.finance banking Platform is a pre-developed FinTech solution on which banking products can be built. With a range of features and capabilities, SDK.finance provides a robust Platform that enables businesses to build, manage and scale their financial services faster without having to start from scratch.
The main features of SDK.finance banking Platform:
SDK.finance’s banking Platform is a powerful solution, equipped with the tools and infrastructure necessary for organizations to create and expand online banking services effectively.
Finacle Digital Engagement Suite, developed by Infosys (EdgeVerve), is a comprehensive digital banking platform that enables banks to deliver seamless customer experiences across multiple channels.
Finacle Digital Engagement Suite features include:
Finacle Suite is a strategic tool for banks to adapt to changing customer needs and preferences, stay competitive and ensure customer satisfaction. With its open and flexible architecture, it helps banks not only meet but exceed customer expectations while maintaining operational efficiency.
nCino Bank Operating System is a cloud-based platform designed to improve banking operations and increase efficiency.
Key features of nCino Bank Operating System
With a secure cloud-based solution, the nCino Cloud Banking Platform covers a wide range of business areas. This platform streamlines interactions between customers and employees, driving efficiency, transparency, profitability and regulatory compliance across all areas of the business.
NETinfo Digital Banking Platform offers a comprehensive suite of digital banking solutions that meet the needs of both retail and corporate customers.
Key features of this platform include:
NETinfo’s Digital Banking Platform provides a comprehensive suite of solutions, serving both retail and corporate banking needs, and offers a range of features that enhance efficiency, security, and revenue generation for financial institutions.
Backbase is one of the most reliable online banking platform providers that enables community banks, credit unions, commercial banks and wealth management firms to deliver a fast, easy-to-use and feature-rich online banking experience across all customer touchpoints.
Key highlights of the Backbase platform include:
Our unified platform covers a range of banking functions, from customer enrollment and service delivery to loyalty programs and lending. It is designed to be open and frictionless, with ready-to-use applications that improve every facet of the customer journey.
Temenos is one of the leading online banking platform provider in the world. The platform is designed to help retail, commercial and private banks manage transactions, risks, corporate loans and much more.
Key capabilities of Temenos platform include:
Temenos’ solution provides the ability to meet the diverse needs of banks in a variety of financial markets and regions.
Fiserv, Inc. is a multinational corporation with its headquarters based in Brookfield, Wisconsin. It specializes in delivering financial technology solutions to clients across diverse sectors, with a strong focus on the financial services industry.
Established in 1976, Fiserv is known for its cost-effective organizational structure and a track record of acquiring core processing companies. Here’s an overview of what sets Fiserv apart:
Fiserv is a trusted partner for financial institutions seeking to navigate the complexities of the modern banking landscape, enabling them to remain competitive, secure and customer-focused. Choosing from a diverse array of online banking platform providers allows financial institutions to tailor their services to the unique needs and preferences of their customers.
Digital banking platforms go beyond basic banking functions to offer a range of features such as mobile banking, personalized experiences, and third-party application integration. By leveraging technology and data, digital banking platforms are changing the way we interact with financial institutions.
The future of online banking platforms will likely be shaped by several new trends and technologies. Below, we present the future trends for the digital banking software industry:
Mobile banking apps will continue to evolve, offering a seamless and intuitive user experience, including features like mobile check deposits, voice-activated commands, and augmented reality-based banking services.
In this digital age, personalization isn’t just about basic data like the customer’s name. Rather, it’s about knowing your customers’ likes and dislikes and developing a unique package of banking products and services for each customer that meets their needs and wants.
Online banks may focus on sustainability and social responsibility, offering environmentally friendly banking options and supporting ethical investing. For example, they may offer green loans or financing options that support environmentally friendly projects, such as renewable energy installations, energy-efficient home improvements, or electric vehicle purchases.
Online banks may expand their reach globally, offering multi-currency accounts and international banking services to cater to the needs of a more interconnected world.
Collaboration with fintech companies and other businesses will lead to the creation of financial ecosystems, where customers can access a wide range of services seamlessly from within their online banking apps.
Developing an online banking platform from scratch can be a challenging task requiring significant financial investment and time.
SDK.finance Platform was created to make this journey much more efficient and cost-effective. Our pre-developed back-end solution serves as a foundation that allows you to accelerate the development process and focus on customer experience and adding new functionality.
You can use SDK.finance`s ready-made Platform to build the payment product on your own, but if you don’t have software developers you can hire our dedicated development team. Our technical professionals have more than 10 years of experience in FinTech and can bring your payment product vision to life more efficiently and faster.
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