The main purpose of this research was to find out how digital technologies and internet are being implemented in the provision of banking services from the perspective of commercial banks and users. The goal of the research was to gain a better understanding of digital banking channels and of attributes, habits and preferences of its users. The main data source for researching the users was Eurostat and results of similar previous research. Likewise, for the commercial banks main data source were the results of previous research like the one from the Croatian central bank. Previously mentioned data was analyzed and compared to get a better understanding of the researched topic. Results of the research have shown that Croatia has significantly lower number of internet banking users compared to the rest of the European union members. Most of the users are between 20 and 40 years old. Compared to the rest of the functions, the users place the most value on the possibility of checking their account balance and paying the bills, and they place the least value on possibility of getting notifications about new services. Besides that, security of internet and mobile banking is of great importance for the users, and they mostly perceive them as safe. The users perceive the biggest benefits of digital banking channels in significantly lesser temporal and spatial restrictions in carrying out banking services. On the other hand, commercial banks in Croatia have mostly digitalized their external processes such as payments and settlements and their retail business. The main benefits of that is the attraction of new clients and retaining the existing ones, and better profitability. The biggest obstacles banks face are other business priorities, limited investment and cybernetic security concerns. A good example of digitalization is „Zagrebačka banka“ which offers a huge range of diverse functions on its internet and mobile banking services. Further, its possible to point out several assumptions for the explanation of lesser number of internet banking users in Croatia compared to the rest of the European union members such as perception of security and benefits of internet and mobile banking, internet access, cultural factors and education. In Croatia there is a lack of extensive research on the topic of internet and mobile banking, and digitalization of commercial banks. The existing research is founded upon a small sample size because of which a more detailed data doesn't exist. Future research should focus more on the effects of the COVID-19 pandemic on the digitalization of commercial banks, and on the habits and preferences of mobile banking users.