Digital banking is the process by which banks extend their transaction capabilities to their customers through various secure digital channels, managing data security, related risk reduction and standardized parts of the banks themselves. In order to exceed customer expectations and improve convenience and experience, this is achieved by combining online and mobile banking services and applying cutting-edge digital technologies such as social media, analytics and creative payment solutions. Access to online banking has resulted in a reduction in transaction processing costs through digital channels, which are up to 20 times cheaper than those in a branch and typically 5 times cheaper than those using ATMs.On the one hand, there has been a loss of the kind of direct engagement that made it possible to understand customer requirements and facilitate the sale of goods and services. On the other hand, banks no longer have such high overhead costs, but neither do they have such a high profit margin. In order to attract customers, banks must differentiate themselves from the competition through consistent innovation, improvement and a focused, tailored offering. As a tool to retain and attract new customers, mobile banking is starting to play a big role in how competitive banks are. Mobile banking is a service that allows users to monitor account balances and transactions, bill payments and open accounts without having to visit the bank. All generations use mobile banking because they have access to the bank at any time and in any place, regardless of branch location or business hours. The paper will describe the history of digital banking, its types and characteristics, and after that the topic will be covered using the example of Zagrebačka banka d. d. d. and its services and compared with the competition. The aim of this paper is to explain digital banking and the services it offers using a concrete example.