Understanding the Rise of Digital Banking

The world is undergoing something of a banking revolution right now. A new wave of digital banks has entered the market in recent years, challenging the traditional banking model and disrupting the status quo. Focusing on providing a predominantly mobile app experience, a digital bank has no physical branches, which has drawn a huge amount of attention to this new face of banking. 

Technology has improved so many different aspects of our lives in recent years making even the most simple tasks more convenient. From your device, with just a few taps, you can have food delivered to your house, order a taxi, send important business emails and have live video chats with friends and family in real-time. As more people are embracing digital technology and all the benefits it has to offer, it is no wonder that more people are making the move to digital banking. 

Let’s take a look at just a few reasons why digital banking has become so popular in recent years.  

Lower Fees And Better Rates

Because digital banks have much lower overheads than traditional banks, they can pass these savings on to the customers, offering better rates and lower fees. Many traditional banks have a range of arbitrary rules and fees such as those associated with keeping your account open, making deposits to your account or using your bank cards. Digital banks, on the other hand, are less likely to charge you for these fees, saving you more money each month. 

Improved Online Experience

While it’s true that nowadays many traditional banks offer online banking, the range of services you can access is typically far less than a digital bank. Digital banks are designed to be used solely online or via an app so the user experience has been given a lot of consideration. With an improved digital banking experience, you can carry out your day-to-day banking tasks with ease, without ever having to visit your local branch, or even leave your home! 

Card Management

Another reason that digital banks are becoming more popular is that they allow you to manage your cards with ease. Instead of having to register your cards with a third-party application, you can store your digital cards in your online banking app so that you can conveniently tap and go when you’re shopping. With this feature, you will be able to make payment with ease when you’re on the go and keep track of your spending in the app, which will update your balance in real-time. 

24/7 Access

If you want to visit a traditional bank outside of their normal working hours, it can be very difficult. For people who are busy during the day, it can almost be impossible to get to your branch during their opening times and when you do get there you can be waiting in line for longer that you would like. Digital banking eliminates this issue, allowing you to access your accounts and complete transactions 24/7, 365 days a year. With unlimited access to your financial information, you will be in more control of your business finances moving forward. 

Digital Banking Is Here To Stay

Offering a more convenient banking solution, easy access to banking services and financial data and lower rates and fees, the rise of digital banking is set to continue. As more people realise the benefits of digital banking over traditional banks, we can expect more people to join in the digital banking revolution. Compare different digital banks to find a provider that can offer you the services that you need at the best price and get started in the exciting world of digital banking.

Chung Nguyen

Chung is a seasoned business journalist with a focus on sustainability and corporate social responsibility. With over 15 years of experience covering the world of finance and economics, Rachel has established herself as a respected authority on responsible business practices. Throughout her career, Chung has interviewed some of the most influential leaders in the corporate world and has covered major business events such as the World Economic Forum and the United Nations Climate Change Conference. She is also a regular contributor to leading business publications and has won several awards for her work. Chung's passion for promoting sustainable business practices has also led her to author a book on the topic.