What Are Digital-Only Banks And Will They Change How You Bank?

Digital-only banks are leading the way with savings accounts, which is just one of many benefits to help draw in customers to the perks of online-only banking. The technology will undoubtedly continue to transform the way you manage your money, whether it’s having greater control and transparency with your current account or helping to easily budget and save your money.

What Are Digital-Only Banks?

A digital-only bank is exactly what it sounds like. There are no branches packed with bonus-earning managers. Instead, they operate solely through mobile apps, designed to provide a service that is transparent and less product-orientated than traditional banks, giving consumers more control. They depend on technology to operate, so as a customer you can expect the latest features and services before other banks, as well as commission-free spending abroad, real-time spending updates and monthly reports on your finances, on top of the tech offered by traditional banks. Another big perk is 24/7 in-app support, something that traditional banks fall short on.

Money Management

91% of people prefer to use a banking app over visiting a branch, which is one of the biggest reasons why digital-only banks will continue to grow in popularity. Not only do they save you time, but they also offer greater control over your finances. Apps can be used alongside digital-only banks to combine all of your financial information and get tailored advice to help you pay bills on time, save money and know your credit score. As digital-only banks are fairly new they’ve not expanded into all areas yet, so it’s likely that they’ll merge money management technology into their own apps to streamline everything.

The Ability To Freeze Your Cards 

It’s not uncommon to forget your PIN, especially with the rise of contactless payments resulting in it getting used less often, or to think you’ve lost your debit card only to find it a few minutes after calling to cancel it. Digital-only banks offer the option to freeze your cards from making any transactions at the press of a button via the app. You can also get a reminder of your PIN via the app by entering your password or using touch ID, making accessing and managing your money easier than ever.

It’s undeniable that technology will continue to make banking easier and more convenient, with more people using it regularly, particularly as younger generations who use tech the most make up a bigger part of the market.

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