Open Digital Account or Banking Agency?
Although there are thousands of bank branches and they are still on the street corners, city centers and neighborhoods, consumers of financial and banking services are relying less and less on in-person transactions.
According to a Citibank survey conducted in 2018 , nearly half of consumers – including nearly two-thirds of the millennium – increased their use of mobile banking last year, meaning mobile banking is dominating the landscape.
Eight out of ten people are using mobile banking nine days a month, on average, while almost a third use mobile banking 10 or more times a month.
The same survey found that mobile apps for Android and iOS mobile version are among the most used, falling behind only social media applications and weather applications and websites.
If you’re doing most of your banking with your phone or tablet and you’re wondering if it’s necessary to have a physical bank branch in your life, here are a few things to consider:
Convenience of online digital checking accounts
Both types of financial institutions with physical agencies and online banks claim that their main appeal is convenience. And both are right. For example, a local business owner who deals in cash transactions naturally wants a bank that can provide them with fast cash transactions or deposits.
And a person who likes this social part of being able to visit a physical bank – there are people he likes – but this idea that everyone knows him at the bank, or being attended by a favorite employee may not stand the test of time.
On the other hand, an employee or private employee who has his paycheck deposited directly into his account may prefer the facility of a digital account that uses 100% online application to manage his money than a physical bank.
Digital accounts generally allow for quick checking of the balance, making deposits and transfers to other banks simply by taking a picture with your phone and transferring funds to whoever they want and when they want.
There is no waiting in line or worrying about getting into the bank before the end of the banking day.
Security of having a digital account
A common concern is that online banks are not as secure as traditional banks and agencies – and with the ongoing cyber threats every day can leave consumers with less experience in technology very nervous and anxious.
However, protecting your digital account and money information is critical for banks, no matter where or how you make use of the bank (agency or mobile bank), today almost all institutions are storing their data digitally.
So, the thing to check is the level (or, better yet, levels) of security that you are using, usually all online financial institutions offer complex systems to protect against online fraud.
As for your money, the funds deposited are insured by the BC both in physical and online banks.
Satisfaction and convenience
This may surprise you, but customer satisfaction surveys tend to give digital banks a much higher overall score than privately-based branch banks.
When users are comfortable with technology, they love the convenience of the mobile experience and the variety of services available, in many, free of charge.
No, you can not queue up and go with your favorite cashier or get in touch with your manager to personally ask about hiring a personal loan, digital banks do not own an agency , at least most, some have.
However, you can get help whenever you need to use an application or a 24-hour customer service phone number – 0800 and SAC .
Availability of ATM – ATM and Bank 24Hours
Both types of seats make it possible to use just about any ATM in the world. The difference is what you can afford for access to services, financial transactions and withdrawal of money.
Most traditional banks charge a fee if you use an ATM outside the network. Online banks generally do not, for example: you can use any ATM in the world that accepts the Visa or Mastercard fees that can be refunded.
Bank fees and charges
You will probably find that digital online banking is a friendlier place, in general it is, especially if you are not a fan of paying dozens of bank fees.
In addition to ATM fees, overdrafts among others, traditional private banks tend to charge “maintenance” or “service charge” fees, unless you keep a minimum balance in your checking account or make a required number of debit card transactions every month.
Online banks without affiliates have much lower overhead costs, and this usually results in low rates, almost no or no fees at all.
Interest rate on income
Lowering interest rates is attracting savers who invest their money into financial products that pay the most for the use of their resources and financial funds.
While privately held physical banks try to capture savers for traditional savings applications, banks with a digital account offer more flexible and dynamic operations , often offering more competitive rates of return on their accounts, even with money for the checking account.
Changing financial habits
Some people love change. Others do not. If you deal with technology on a regular basis (we’re talking about using a smartphone, and no one needs to study to learn how to use a smartphone), you can probably quickly adapt to a mobile banking application right away.
If you can not – you’ll certainly have to sign checks at the grocery store or pay everything in cash – you may not want to jump to the first mobile bank.
But you can choose to open a second digital account to take advantage of the benefits and get used to this new way of doing banking and business transactions over the phone.
Let your money grow faster in an online account with the highest yield rates and if you think you will lose the personal contact experience, keep a bank account that has a traditional bank branch.
If you like your conventional bank branch and the contact with the people who work there, you can keep that bank account open. The idea of using a counter – where you can apply for a personal loan, car finance or finance a home, get a mortgage or open a savings account – is still attractive to some clients.
But you can do the same thing with a non-traditional option of hybrid box management all by the mobile application and with all the convenience of using the time as you want, a digital account is the way .
With the growth of digital technology and the growing acceptance of online banking, digital and mobile banking, access to banking products and transactions is no longer tied to a physical location or agency.
No matter what is driving your decision making – comfort, cost, or convenience – you can get everything at a financial institution that meets your needs, whatever they may be.
Digital account or Bank with Agency Average 4.7 – 15 votes
At Dora Spenlow, we adhere to rigorous standards of editorial integrity to help them make informed decisions. Some of the products we present are from our partners. Understand how we make money.