Digital-only banks or mobile banks are an alternative to traditional brick and mortar banks. Mobile banks don’t have any branches and offer services through online accounts only. They are known to be more customer-oriented, and customers can manage their mobile-only bank accounts online or through an app. While the apps are safe, they can still be prone to cyber attacks and all usual safety measures for bank details should be followed.
All the services that a traditional bank offers are available online. An account with a digital bank is a good option for those who don’t use cash often and rarely need to visit their local bank branch. Digital banks are known as disruptors and challengers in the banking space. There are several top mobile banks available for customers to get an account with. A digital-only bank account has many benefits over a traditional bank. We’ve listed a few for you below:
Simple process of account creation
Customers can easily create an account with mobile banking. Usually, a number of documents such as proof of employment and identification need to be provided to a bank branch, but with the help of technology, these can be uploaded and verified online automatically. This saves the customers’ time and reduces the hassle. It is also possible for the digital bank to gauge the customer’s financial behaviour and decide whether the application is accepted or rejected.
Accessibility
One of the most obvious reasons people prefer digital banks is the accessibility and convenience. No one has to visit a local bank branch. Balances, periodic payments and transfers can all be done on mobile apps or on a computer from the comfort of one’s home.
This digitization also means that banking services are available 24/7 to customers. Many mobile banks provide full-time support such as live chatting, which results in effective resolution of issues.
Better fees and rates
Since digital banks don’t have a physical brick and mortar infrastructure, their overhead costs are fewer than that of a traditional bank. This allows them to provide higher interest rates on savings. Fees for keeping an account open, making direct deposits, paying by debit card and others are usually not involved with a digital bank. Digital banks usually do not have a minimum balance requirement or service fees.
While traditional banks are trying to build a smooth online experience and investing in improving and launching their apps, digital-only banks still have an edge because of their online-first approach. There are still features that might be difficult to get with digital banks such as personal relationships, depositing and withdrawing cash, making international transactions, and more. So, both traditional and digital banks have their own distinctive advantages that a customer should consider to get the best banking experience. If someone opts for a mobile bank account, they should be aware of tips for a safe banking experience. Mobile banking is gaining popularity and being aware of the innovations can be beneficial for the customers and their finances.
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