Digital Banking vs Traditional Banking
The best way to understand what digital banking is and how it works is by comparing it with the system and requirements of traditional banks.
Digital Banks
It should come as no surprise that digital banking is slowly becoming the new way to bank. After all, you can now access everything thanks to the digitization of numerous major consumer services. Digital banks, on the other hand, offer more than just accessibility.
Pros of Digital Banking
Instantaneous Dealing: Most of the time, mobile banking lets you make quick and efficient financial transactions, whether you’re doing it to pay bills online, send money to someone, or shop for something. What’s more, these transactions come with notifications that are provided to customers, to assure transparency and security. Also, to let them know in advance of service outages or routine maintenance so you can use other transfer methods.
Contactless Payments: QR codes, NFC, virtual cards, and other contactless payment options are available through mobile banking. With just a tap, you can use your phone to pay online or in-store.
Convenience: With wireless connectivity, you can use online or mobile banking to conduct your banking transactions wherever you are. This means that there will no longer be bank lines or paperwork. You can access your money at any time to pay bills, make payments, transfer funds, or make payments.
Security: Multiple levels of security are used in digital banking to ensure that your funds and information are safe. PIN authentication, which includes your phone password, fingerprint lock, and transaction passwords/PIN, provides a unique level of security to protect your account.
Reasonable prices: Users of mobile banks can take advantage of a variety of free financial services. There are no additional fees for making transfers, downloading bank statements, or checking your account balance.
CONs of Digital Banking
Digital banking may not be an option for you if you prefer bank visits because, in most cases, digital banks don’t have physical branches across the country. All of their services can only be accessed online.
Because digital banking does not provide live customer service, the only way for you to file and submit grievances and suggestions are through their online platform, customer chat services, emails, and company phone numbers.
On account of telephone burglary, your whole assets might be in danger on the off chance that you don’t answer to your monetary supplier quickly. This is due to the fact that if the wrong people have access to your email and your SIM card, your money could disappear in a matter of seconds.
TRADITIONAL BANKING
Physical locations are an option for customers to avail services and products, with bank employees in person to assist you in traditional banking.
PROs of Traditional Banking
Actual Visits: For those who are wary of online transactions, traditional banks are the best option. Visits in person are offered by traditional banks during specific office hours. You can conduct a variety of financial transactions there, such as opening an account, making cash deposits and withdrawals, using ATM services, making international transfers, and so on. Additionally, you can store your most valuable belongings in a safe deposit box.
Financial Security: This provides the opportunity for face-to-face communication and human interaction, which lowers the risk of fraud and identity theft and enhances the overall customer experience. In addition, hackers, impersonators, and other security threats to your account information or money are virtually nonexistent,provided that you take the necessary safety measures.
CONs of Traditional Banking
Transaction costs: For a variety of financial services, such as maintaining an ATM or checking your balance, traditional banks charge a fee. Transferring funds to other banks involves additional fees. You must always maintain a certain minimum balance for some accounts.
Complications in handling complaints from customers: Albeit customary banks offer up close and personal client support, they sometimes set aside more margin to determine client grievances than in-line banks. The processing of this procedure also necessitates a number of forms and bureaucracy, which requires more time.
Availability: Traditional banks adhere to operational working hours. As a result, you need to plan ahead of your bank visits. Depending on the services you require, you can only seek assistance within these operational hours
Similarities of Digital Banking and Traditional Banking
The two approaches to banking are not all that dissimilar. There are processes, activities, and products that both provide to their customers
Both offer financial decision-making and money management tools. Both come equipped with a wide range of features that can assist users in better comprehending their finances and making sound financial decisions.
Both traditional banking and digital banking offer online or mobile device access to their services. You can move money from one account to another with traditional and mobile banking.
Customers of both digital banking and traditional banking can set up automatic payment plans so that funds are transferred on a regular basis until the goal or deadline is met.
