Question

Virtual bank is defined as a bank which primarily delivers retail banking services

through the internet or other forms of electronic channels instead of physical branches.

(300 word)

Answer 1

A financial institution that handles all transactions via the Web, email, mobile check deposit and ATM machines. By not having the overhead of physical branches, people expect a virtual bank to offer higher interest rates on their accounts.

The Virtual Banking is the provision of accessing the banking and related services online without actually going to the bank branch/office in person. Simply, availing the banking services through an extensive use of information technology without any requirement for the physical walk-in premises is called as virtual banking.

All transactions in a virtual bank are handled entirely online, whereas "online banking" is an Internet-based option offered by regular banks.

Virtual banking combines the best aspects of self-service in mobile channels and direct “at the window” service. This is a new channel of communication with the client. The client contacts the bank employee virtually, through video, audio and chat channels, while maintaining the direct contact option. Thus, the smartphone or tablet becomes the tool of use in client-bank communication.

The client uses the virtual connection to connect with a bank employee, and this employee assists him at every stage of the transaction. Thus, the customer is able to finalize almost every operation (e.g. the submission of a loan application). The employee in the Video Call Center has access to the client’s account data and can perform various operations for him. An Online Expert can help the client fill out an application, edit data or open a savings account via video. This is thanks to the interactive screens allowing both the consultant and the client to modify the parameters of an offer, work together on an application, upload photos of signed documents or remotely authorize and authenticate (e.g. using voice biometrics). They do not have to return home to get a document they forgot and then go back to the bank to finalize the operation. Instead, they can prepare documents, take photos and transfer the necessary files in a much more relaxed atmosphere.