Digital Bank

Definition ∞ A digital bank operates primarily or exclusively through online platforms and mobile applications, offering financial services without traditional physical branch locations. These institutions leverage technology to provide account management, payment processing, lending, and investment services with enhanced efficiency and accessibility. They frequently utilize advanced data analytics and artificial intelligence to personalize user experiences and streamline operations.
Context ∞ The discussion around digital banks frequently highlights their disruptive potential within the traditional banking sector, particularly concerning customer experience and operational cost efficiencies. Regulatory bodies worldwide are actively developing frameworks to supervise these institutions, balancing innovation with consumer protection and financial stability. Continued expansion into underserved markets and integration with emerging financial technologies remain key areas of focus.