Part of the widespread technology in our lives appears in the banking sector. This technology has recently begun to shift all traditional banking processes to online banking.
Digital banking relies basically on the automation of web-based processes and services and may include APIs that allow the creation of enterprise-wide services to provide banking products and provide Transactions. It provides users with access to financial data through desktop, mobile and ATM devices. Perhaps you’ve dealt with Digital Banks before, or you would prefer to try it. So, let us mention the pros and cons of Digital Banks.
The Pros of Digital Banks
Digital banks are open for business anywhere there is an internet connection. If internet service is not available, customer service is normally provided around the clock via telephone. Real-time account balances and information are available at the touch of a few buttons. This makes banking faster, easier, more efficient and even more effective because consumers are able to always stay on top of their account balances.
Also, updating and maintaining a direct account is also easier. It takes only minutes to change your mailing address, order additional checks, and checks for current interest rates.
2- Open all time
The big advantage of online banking is that you can access it wherever you have an internet connection. There are no time restrictions as an internet branch is always open for business.they are open 24 hours a day, 365 days a year.
3- Save Time
Internet banking means all transactions are carried out in the comfort of your own home. You do not have to search for a parking space, battle rush-hour traffic or waste time in a queue for a busy bank teller.
4- Transfers ability
Accounts can be automatically funded from a traditional bank account via electronic transfer. Most direct banks offer unlimited transfers at no cost, including those destined for outside financial institutions. They will also accept direct deposits and withdrawals that you authorize, such as payroll deposits and automatic bill payment.
Online accounts are easy to set up and require no more information than a traditional bank account. Many offer the option of inputting your data online or downloading the forms and mailing them in. If you run into a problem, you have the option of calling or emailing the bank directly.
One advantage of using online checks is that the payee’s information is retained, which eliminates having to re-enter information on subsequent checks to the same payee.
The Cons of Digital Banks
Digital banks are subject to the same laws and regulations as traditional banks, and accounts are protected by the FDIC. Sophisticated encryption software is designed to protect your account information, but no system is perfect. Accounts may be subject to phishing, hacker attacks, malware, and other unauthorized activity.
Some digital banks may not offer all the comprehensive financial services, such as insurance and brokerage accounts, that traditional banks offer. Traditional banks sometimes offer special services to loyal customers, such as preferred rates and investment advice at no extra charge.
In addition, services such as notarization and bank signature guarantee are not available online. They are required for many financial and legal transactions.
A traditional bank provides the opportunity to develop a personal relationship with that bank. Getting to know the people at your local branch can be an advantage when you need a loan or a special service that is not normally offered to the public. A bank manager usually has some discretion in changing the terms of your account if your personal circumstances change. They can help you solve problems such as reversing an undeserved fee or service charge.
Your banker will also get to know you and your unique needs. If you have a business account, this personal relationship may help if you need capital to expand. It’s easier to get the bank’s support if there is someone who understands your business and can vouch for your operating plan.
Sometimes a face-to-face meeting is required to complete complex transactions and address complicated problems. A traditional bank can host meetings and call in experts to solve a specific issue. In addition, international transactions may be more difficult or impossible with some digital banks.