The development of digital transactions and online banking accounts over the last two decades has opened up new opportunities while adding convenience for users. Digital banks are no longer just a hobby of geeks and techies but a necessity that everyone uses and benefits from.
Let’s take a quick look at what makes digital bank accounts different and better than traditional high-street banks.
Location and Accessibility
The biggest difference between a traditional and digital bank account is how you open an account and access your funds. Most traditional banks still require depositors to visit the bank in person and open an account physically before they can use any services. Many banks don’t even offer online transactions, and you have to use your credit or debit card to make purchases. You also need to set up and maintain a minimum balance to avoid service charges.
Digital bank accounts can be opened up remotely from your home computer or mobile device. You do need to provide a physical home address for correspondence, but the account opening process can be completed online. Take the example of Varo Money. At this digital bank, where you can open up an account within minutes from your mobile and don’t even need to maintain a minimum balance.
Checking your balance, setting up direct debits, bills clearance and money transfers can all be carried out through a digital device on for your account. Neat!
Innovative Customer Service
Traditional banks still rely on using age old methods for carrying out transactions. These put the customer at inconvenience and the bank in a position of authority. For example processing of checks still requires client signature. If you are looking to create a demand draft, you will need to visit your bank and get prepare it at the branch against balance or cash.
A digital bank sets up an innovative system so that the client doesn’t need to visit any branch locations to perform transactions. Many digital banks have also set up 2fa (Two Factor Authentication) and fingerprint scanner based logins. These security protocols make them far more secure than traditional banks that still rely on signatures that can be easily forged.
No Hidden Charges
Traditional high-street banks have to meet a lot of bank and branch operating costs. To stay profitable, they charge clients for everything from the new checkbook and card issuance to overdraft fee, balance transfer fee and cash withdrawal fee.
In contrast, most digital banks offer their services free. Since they are not operating expensive high-street branches, there is simply no need for them to charge customers unnecessarily.
Take the example of Varo Money. This digital bank does not charge clients any hidden fee, and there is no fee for overdraft, transfers, monthly fee, debit card replacement or foreign transactions.
A digital bank is made for the age of the internet. It offers quick transactions, customer convenience innovative features and very little charges that make it ideal for a modern consumer.