Going Digital for Your Banking Needs: Is It the Right Choice for You? By Justin Knepper
Some people are wary of going digital with their banking needs, but what they don’t realize is that there are many benefits to having a digital bank account. One of the main advantages is to have access to your money from anywhere in the world. Digital banking also makes it easier for international transactions. Defining Digital-Only Banking A digital bank (sometimes known as an online bank, Internet-only bank, virtual bank, or neobank) exists solely online without physical branch networks.
by digital banks. In addition, because they focus on technology rather than physical branches, digital banking provides superior online security. Frustrations with Traditional Banking According to some estimates, almost half of Europeans and Americans are frustrated with their banks, with nearly a third complaining that banks aren’t looking out for our interests. It’s mostly about the costs and fees which consumers don’t expect and traditional banks aren’t upfront about.
Digital banks are fintech (financial technology) companies that provide banking services via apps, software, and other technologies. These firms generally specialize in specific financial products like checking and savings accounts. Digital banks have a lot of bells and whistles, too. A digital bank is likely to give you access to services that traditional banks may still be developing—such as budgeting tools, instantaneous spending notifications, or even investing opportunities. They have caused major upheavals in the banking industry by allowing for interconnection and competition, bucking tradition with seamless online experiences and low- or no-fee services. Capability of Digital Banks vs. graphic: Adobe Stock Online Banking Traditional bank’s online banking (and mobile banking) provides numerous possibilities that cater to the needs of most customers, including keeping track of account balances, transferring money, paying bills, and setting up automatic payments. Setting fraud alerts and even opening new accounts and applying for credit are all possible via the Internet for many banks. Budgeting tools, real-time spending notifications, investing solutions, and superior online customer experiences are just a few of the advantages offered 20 Portugal Living Magazine
Traditional banks have a reputation for charging fees for everything—from overdraft expenses to monthly operational charges. One of the most significant flaws or disadvantages of traditional banks is the poor interest one’s savings earn. There have also been decreases in banking branches in recent years, as big banks attempt to achieve lower costs. With the reduction of bank branches has come a decrease in cash machines or ATMs. Many clients have been inconvenienced by fewer accessible sources of money.
