Banks as financial institutions offer various financial services, and their activity consists in mediating money and credit transactions. The development of new technologies has brought about significant changes in all branches of the economy, including the banking sector. The application of IT technologies in banking enabled faster and simpler banking operations andthe offer of a whole range of new products and services. Modern banking is based on the application of digitization in the performance of banking operations. Although it brings many advantages, there are also disadvantages that can be seen in the risks of using the Internet, which banks try to solve by applying the most modern security measures. The paper presents the development of modern banking, the difference between traditional and modern banking, self-service banking, distribution channels of modern banking, its advantages anddisadvantages, i.e. modern banking in general with a presentation of modern banking services on the example of Hrvatske poštanska banka, a joint-stock company.