The benefits of digital banking largely stem from the fact that these banks root their mission in fixing some of the problems presented in the traditional banking industry. One such problem is that historically, banking has not been accessible to certain types of customers, such as those with low-income or high-risk customers. Digital banks have transformed the application process, making it much faster, with less or no paperwork and completed entirely online. The process usually involves downloading an app, entering some personal details, and confirming your identity. Within minutes your application has been approved, and your account is open – a much more accessible and convenient process than the one offered traditionally.
Fees are a common occurrence with traditional banks and can cost customers hundreds each year. However, digital banks do not have the regulations, expenditures, and dated infrastructures of traditional banks, allowing them to provide an almost entirely fee-free service, often selling themselves as banks with no hidden fees. This also means that digital banks can often offer better interest rates on savings.
Further benefits of digital banks’ service come down to the automated tools and features they offer to help customers make the most of their finances. Real-time spending notifications allow customers to stay as up-to-date on their spending as possible, and monthly spending reports help them see where they could be spending less or saving more. They also offer ways to squirrel funds away into separate areas and round-up features that place spare change into savings. One of the most significant benefits of digital banks is that they are growing quickly and always rolling out new features to make the banking experience more useful and convenient for their users.