This paper reinvents Freire's concepts of 'banking education' and 'literacy' within the context of the exponential growth of digital instruction in the 21st century. We argue that digital learning (i.e. online or technology enhanced) undoubtedly increases access to education globally, but also can intensify some of the worst problems described in Freire's banking model. Accordingly, we draw from postdigital theory to scrutinize the specific structures and functions of common digital Learning Management Systems (LMSs) used by schools (i.e. Blackboard and Google Classroom) to reveal a type of learning that further exacerbates the teacher-student dichotomy without liberating either party in a Freirean sense. We then use a Foucauldian lens to bring an awareness to how the accelerated use of these systems at scale, in part caused by the COVID-19 pandemic, can further entrench a data-driven, dehumanized educational experience which increases corporate profitability perhaps over the needs of students. Finally, we use these insights to modernize Freire's concept of 'literacy' by building on Critical Medial Literacy (CML) in order to help educators address LMSs, (mis)information facilitated by digital content, and schooling in a (post)pandemic and postdigital world.