What is Digital Banking? Why Should International Businesses Have One? (2025)

With so many banks to choose from and different forms of opening a bank account, opening a regular bank account is the most difficult choice for businesses setting up foreign companies and doing cross-border business.

Nowadays, many businesses choose to open accounts with digital banks because of their superior benefits over traditional bank accounts in many aspects.

Let's find out with GLA in this article what digital banking is, whether opening an online bank account at a digital bank is really the right choice for businesses, and the benefits that companies can take advantage of to gain a competitive advantage in 2025.

1. What is digital banking?

Digital Banks are a form of providing financial services entirely on an online platform, eliminating the dependency on physical branches.

Instead of going to a physical bank to conduct transactions, customers can use a mobile app or web portal to manage their accounts, transfer money, pay bills, or even apply for loans 100% online without having to go to the bank. 

3 main characteristics of digital banking in countries that businesses need to know:

• Completely online: Digital banking is a 100% online bank with no physical branches, all services are provided remotely.
• Cross-platform compatible: Businesses can access the bank on smartphones, tablets or laptops, supported mainly via email, phone, online meeting
• Government licensed: Digital banks must be licensed by the government and meet very strict security and financial safety requirements to be allowed to conduct financial activities such as Digital bank license, Major Payment Service Provider of Singapore or MSB license of the US.

Typical examples of digital banks include Revolut Bank and Barclays Bank in the UK.

In Vietnam, Techcombank, Vietcombank, Timo, and BIDV have also developed strong digital banking applications to meet domestic and international needs.

2. What is the difference between e-banking and digital banking?

Many concepts such as digital banking, electronic banking (E-banking), Internet Banking and online banking services are often used interchangeably, causing confusion for users. 

Although they all operate on the internet, each type has a different nature and function. The following comparison table will clarify the two concepts.

3. Why should international businesses consider opening an account with a digital bank?

Besides the option of opening a bank account with a physical bank in Corporate countries like Singapore, USA, Hong Kong, Malaysia, Thailand etc., opening a digital bank account would be a strategic alternative because of the following benefits:

3.1. Save on opening costs and operating costs 

Physical banks have very high account opening costs and mandatory account maintenance requirements, which are often challenges faced by small and medium-sized businesses doing business internationally. 

1. High transaction fees.
2. High account management fees.
3. High foreign exchange fees.
4. Depreciation fee if balance does not meet maintenance threshold for corporate clients.

Digital banks do not have the above problems, Businesses can easily open accounts with no management fees, no hidden costs, save money when receiving, paying, transferring multi-currency (USD, HKD, SGD, RMB).

3.2. Transfer and receive multiple currencies easily, quickly and safely

In a global business environment, companies are constantly faced with the need to transfer and receive multiple currencies from customers, partners and suppliers located around the world.

This is a big challenge if using traditional financial methods: 

• High conversion fee.
• Processing time is 3-5 days.
• Cash flow management is difficult.
• Lack of flexibility, many manual steps.
• Must open multiple accounts for each currency

Digital banking is an effective solution, helping businesses process multi-currency transactions easily, quickly and securely. Applying modern technology and laws that allow easier payments, digital banks allow

• The company may keep, Send and receive payments in USD, EUR, GBP, SGD and many other currencies without opening multiple bank accounts.

For example, a business can pay a supplier in China in CNY directly from its account without going through its bank, and receive USD from the US within 24 hours. 

• Fast money transfer time within the day with modern technology such as enhanced SWIFT or exclusive network of local banking partners.
• Competitive foreign exchange rates, compared to physical banks.

3.3. Easy account opening process

Unlike traditional banks abroad with their classic, multi-layered processes and difficult verification requirements, digital banks apply the latest changes in security laws and advanced network technology to help the account opening process be 100% digitized, shortened. opening time

3.4. Modern security technology

Similar to physical banks, to receive a financial business certificate, digital banks are required to meet financial security information security requirements. 

In particular, as digital banks, online security technologies are highly invested in by companies, helping to reduce the risk of fraud and security risks, providing a pleasant experience.

The clearest demonstration of digital banks' commitment to safety and data protection is online bank GXS: this is the first electronic bank in Singapore to be awarded by the Infocomm Media Development Authority (IMDA). Data Protection Trustmark (DPTM)

3.5. Enhance customer experience

Unlike physical banks, digital banking services operate almost 24/7, allowing businesses to serve customers anytime, anywhere. 

In particular, the account opening process is not as complicated as a physical bank, allowing the company to own an account in 2-4 weeks or 2-4 days.

In particular, companies can receive direct support from Account Managers for their problems and difficulties in just a few minutes.

3.6. Easy accounting with digital banking

With integrated tools and real-time visual data connections, digital banking helps businesses manage finances more effectively, minimize errors and save time.

In addition, businesses can easily connect digital bank accounts with international accounting software such as QuickBooks and Xero, making cash flow management and corporate tax compliance easier.

4. Which companies are suitable for using digital banking?

Digital banking is not only suitable for individuals but also an ideal solution for many types of businesses.

Companies that benefit most from digital banking

1. The company needs to transact regularly in multiple currencies and needs to transfer money across borders.
2. Company doing export business, cross-border e-commerce.
3. Startups and tech companies need investment capital.
4. The company has international customers and partners so it needs an easy, fast and affordable money transfer service.

5. How does GLA support businesses in opening digital bank accounts?

With experience in supporting businesses to effectively manage their finances with successful digital bank accounts, GLA will support businesses to open at least 1 account with a digital bank. reputable, licensed in Singapore, USA, Hong Kong, etc. until success:

• Digital banking consulting best suited to company needs, with high success rate.
• Prepare appropriate and accurate documents and information to increase the possibility of opening.
• Work with bank specialist, resolve issue.
• Support working with bank specialists, handling arising problems.
• Support opening bank account with physical bank when needed.
• Consulting and supporting registration of international payment gateways such as Paypal, Stripe, etc.

6. Frequently asked questions about digital bank accounts

Highlights

• Digital banks are banks that operate 100% online, have no physical branches, are licensed by the government and provide services similar to traditional banks.
• E-banking is a part of physical banking, providing users with basic functions through the app.
• Opening an account with a digital bank helps save costs, shorten money transfer time with high security.
• Companies working with foreign customers and partners, with high cross-border transaction needs, and the need to receive multi-currency money quickly should consider opening an account with a digital bank.