Digital Bank

[Rruchi man]

Cons:
Mostly not insured.

Always verify the insurance status, so you do not use a digital bank that have faked their insurance status.

Probably bad and slow customer service.

So far because I have had an experience with using a digital bank for more than a year, I can say that their customer service is not always slow and sometimes even faster than the customer service of normal banks. The digital banks that I've used, have actively had customer service agents on their on their social media platforms for complaints, and also on their core lines.

Are you sure they don't have building in your country? try to search the bank in google maps, you might find it in the other city because that's what happen in my country.

Digital banks have physical offices, but not as many offices as the normal banks do. It is for the simple reason that most of their services are online. If they start opening up many physical branches, then they are no different from the normal banks that already exist.

[oktana]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it.  In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that?  Also, what is the pros and cons of using digital bank instead of traditional bank?

A centralized bank that doesn’t have a physical address doesn’t sound so safe. Like Apocollapse asked, are you sure that they don’t have a physical address? Because even centralized cryptocurrency exchanges like Binance, etc have physical addresses registered with the government. And I really do not believe any government would approve a bank that doesn’t have an office.

In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.

They are probably doing that because they want to attract more people to use them instead of the traditional banks.

[tyz]

what is the pros and cons of using digital bank instead of traditional bank?

A few pros and cons which came in my mind.

Pros:
- Accessible online or through mobile apps, allowing you to manage your finances from anywhere.
- Often have lower fees compared to traditional banks.
- Use the latest technology for secure and innovative services.

Cons:
- Don't have physical branches, so in-person services are not available.
- Thus, lack of personal touch.
- Require a stable internet connection and may not be accessible during technical issues.

[angrybirdy]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it.  In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that?  Also, what is the pros and cons of using digital bank instead of traditional bank?

Mostly digital banks here in our country does have headquarters building like Maya, Gcash, Seabank and ING. That's true they have higher interest rate than traditional banks because they only consume lesser operating expenses due to limited headquarters and employees in every country. if you ask what are the differences between a digital bank and a traditional bank, all I can say is that digital bank is a user friendly and prioritize the digital conveniences while the traditional bank offers wider range of banking services. Since we're in digital era, Digital bank is one of the most convenient way to store money and to use as one our basic needs when it comes to payment transactions, It is paperless, speed transaction and Easy access of our bank accou nt.

[btc78]

Do you mean banks that offer digital services? I do know some banks that have physical branches but also have digital apps where you can make transactions as well.

But if you mean “banks” that are purposely and solely digital then yes it is something very common in my country. It’s kind of like a crypto wallet except you are storing fiat in it. We commonly use it to pay digitally. We can also transfer from and to banks. I didn’t know that not a lot of countries have this.

[Poker Player]

I am familiar, as I would say I have only been using online banking for more than 10 years. And I think that's the global trend. Going to a physical branch to update the passbook and things like that is very 20th century. Normally they do have buildings, usually a central office that you can go to, but they don't usually have the typical network of offices where people go in person to do the formalities. And if you think about it, why? Transfers, payments, purchase of financial assets, contracting loans and cards, I can do everything online. I don't need to go to a physical branch for anything, and even less knowing that they will try to sell me what is convenient for the bank as if it were convenient for me.

[Pi-network314159]

what is the pros and cons of using digital bank instead of traditional bank?

Digital bank is the easiest ways to financial freedom, the world is evolving and we are evolving with the latest technology. A time shall come when most of what we usually see as important will turn inrelivant because people have find an alternative way than the others. Just like people will prefer to put their money on bitcoin than Puting it on local bank where there is no much volatility. The bank keep on reducing your fund through SMS charges and bank maintenance fee but in cryptocurrency there is nothing like maintenance fee, or even sending money to someone and complain that the money was unable to reach the receiver, but in crypto currency any amount send is equal to the amount recieced except for transaction fee. But after that the Price changes due to Bitcoin growth.

[Fuso.hp]

Whether the bank is digital or physical, you must first ensure that the bank you are depositing money in is safe to deposit your money. If your digital bank is authorized by the central bank of your country and if that bank is more reliable and secure, you can keep your money in digital bank. However, currently all physical banks have introduced digital banking services to further increase their banking services, as well as mobile banking services, so that even if you keep money in physical banks, you will get all kinds of benefits. If you get all the facilities including digital banking by keeping money in physical bank then it will be safe for you to keep money in physical bank.

[sekalitas]

Anyone who is familiar with digital bank?

I've used that before. In my country, I used Bank Jago, and it was very convenient for me because I really need easy online access everywhere and anytime.

In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that? 

Based on my internet research, digital banks offer more than traditional banks to satisfy liquidity needs and attract customers. However, it's important to note that deposit interest rates in Indonesia are not guaranteed by the Deposit Insurance Corporation (Lembaga Penjamin Simpanan, or LPS) if they exceed the LPS's stipulated limits.

what is the pros and cons of using digital bank instead of traditional bank?

Pros:

• More affordable transaction costs
• Can be accessed anytime and anywhere
• Easy account opening process

Cons:

• Highly dependent on internet connection
• Risk of fraud with various modes
• Uncontrolled spending due to ease of transactions

Overall, the pros of digital banking still outweigh the cons.

Source:

• https://infobanknews.com/penuhi-likuiditas-bank-digital-ramai-ramai-tawarkan-suku-bunga-tinggi/
• https://keuangan.kontan.co.id/news/tawarkan-bunga-tinggi-bank-digital-optimis-targetkan-pertumbuhan-dpk-tahun-ini

[letteredhub]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it.  In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that?  

When you just arrive into a market environment anew for you to be recognized and giving that patronage from a users that have already been captured by an existing competitors you have to initiate certain features and offers that isn't found with those of others that were in the environment before your arrival, and that's exactly what these online banks are doing against the backdrop of traditional banking. And they seem to have one of the fastest reliable network for transactions than traditional banking does. Etc.

 

Also, what is the pros and cons of using digital bank instead of traditional bank?

I just mentioned one pros above as fast network transactions, also they have daily bonus or interest they give customers something traditional bank does not do, less charges and many more.

One cons I have looked into about online banking is that it doesn't fit in with the elderly for use, so it's youth friendly innovation than elderly. Another thing is that when a user face problem its only online you have to stay on to solve it as there's no walk-in office to lay complain since most of these online banks doesn't have a physical branch yet situated in the places they operates.

[Volimack]

Banks provide loans to earn high interest. Traditional banks are offering higher interest rates of return than their counterparts as their profit margins are limited here as commercial banks offer much lower interest rates. The advantage of digital bank is that customers will save time as they do not have to go to the bank. Many times customers have to go to the bank and sit in the queue to get the service. But you don't have to do that here. They will also save time traveling to the banks will be able to provide services to customers at a lower cost.

[kingmanbs]

Traditional banks used to give loans only to rich people to see what they have left.  At that time, loans were not given to the poor.  And nowadays in digital bank the rich don't look at the poor they give loans on interest so that they can earn crores of rupees.  There are also many industrialists who keep money in the bank so that they can double that money, digital bank used to double that money by delivering it to people to double the money.  This is how digital banks are being established or they are evolving

[TheUltraElite]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it. 

There are a few non-banking lenders from where I live, but have not heard of the digital banks yet.

In my country, they are offering higher interest rates returns compare to their traditional bank counterpart. 

Most of them might turn out to be bad eggs. Why invest in them when traditional banks already exist? A high interest rate is always a red flag when a traditional bank is already struggling to pay back its depositors with low interest rate.

Anyone knows the reason why they can do that?  Also, what is the pros and cons of using digital bank instead of traditional bank?

It might not be true in the first place, you should check on your local users to see whether they have info or if they are using that bank. Remember that whenever you have some quick and free money, you will be losing more than you invest.

[BD Technical]

Digital bank is now over in all countries and the efficiency of digital bank is currently high because in digital bank your money is not in hand but your money depends on numbers only.  The higher the number of rupees, the higher the value of rupees.  Moreover, the effectiveness of your digital bank in all countries has increased because everyone's needs and facilities have increased because it has become very easy to send money from one country to another.  Nowadays, sending money is very easy because if you send money from one place to another through digital currency, the money is paid very easily and within seconds.  So there are digital bank risks and all but little if any as far as I know.  But everything is right and wrong but with your profit.  There is a possibility of loss because if your bank account gets hacked then it is not possible to lose your money or your capital.

[|MINER|]

Digital banking has many advantages, the biggest advantage being its ease of access.  Physical banks like Hassel have to suffer.  Digital banks do not have to suffer such hassles.  Interest in digital banking is high and it is easy to use.  Although it has many advantages, it also has some disadvantages.  Many countries have hard to find ATMs or transaction centers.  That is not available everywhere.  There is also a possibility of bankruptcy.  There are pros and cons to using it, but I think the pros outweigh the cons.

[Churchillvv]

I have experience with digital banks I use them alot.

in my country there are alot of network issues with traditional banks, they tend to offer low customer service compared to digital banks, this digital banks response to transaction faster and easier than traditions banks, right now most people are using this digital banks often because of how fast it can deliver your transaction.

But the big truth about them is its never safe, if you lost your money, in some situations it could be gotten back through some know process but there are prone to bankruptcy. They can be scams etc but the only way to manage with them is by having only smaller amounts with them for fast transaction but when it comes huge money that needs to go for a traditional banks it more safer there.

[Mr. Magkaisa]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it.  In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that?  Also, what is the pros and cons of using digital bank instead of traditional bank?

        -   I haven't tried digital banks, but according to my research, their fees are lower compared to traditional banks, but some are also higher. Then another good thing is to use the digital bank in places where there are not many traditional banks but there is a data connection, so you have internet.

It's just that when it comes to services, it's not good because they don't offer any services; unlike traditional banks, you have someone to talk to and complain to, while digital banks don't.

[kentrolla]

Yes it's quite popular nowadays and it's good compared to traditional banking and usually they are owned by any of the traditional banks themselves or few may be independent, it's easily adoptable by people who knows how to use internet. Basically where you don't have paperworks and manually stuffs done through the banks branch are no longer required as everything happens through the app and it gives you better insights of where you spends and they have some nice investment plans and suggestions it looks more like wealth management application. They have better offers and more rewards compared to the traditional banks.

I have mentioned link of one such successful digital bank for your reference:
https://jupiter.money/

[Mrbluntzy]

Anyone who is familiar with digital bank?  All I know is that, unlike traditional bank, they do not have the bank building hence saving them from all costs related to it.  In my country, they are offering higher interest rates returns compare to their traditional bank counterpart.  Anyone knows the reason why they can do that?  Also, what is the pros and cons of using digital bank instead of traditional bank?

Digital bank which are the mobile money service companies (mms). They are really plenty in my country but people uses the ones that are more popular and some of them grown to become micro finance banks and no longer mms, they also have the mission to become a standard chartered bank in the future. The advantage of those digital bank is that customers will get their transactions processed so fast while standard bank can have some issues at times. The digital banks too are fast in attendending to dispute transactions but if you visit a traditional or standard bank, you might have to waste your time sitting and waiting for your turn to reach. The disadvantage of those MMS company is that some of them doesn't have a complete license to function as financial system and therefore if they collapse, it will be difficult for custers to get back their money.

[Sebas.tian]

If you are saving your money in the digital bank, you are not different from those that is saving for Traditional bank because all those digital bank owners do the same charges with the Traditional bank. If you have money you don't want to use in five years time, I will advice you to invest the money in Bitcoin and you will make a good income when the price of Bitcoin increase higher in the future.  I discovered that potential investors don't save huge amount of money in the bank to last more than one year, because they know that there is no much profits that will follow the capital at the end than to invest the capital in Bitcoin and be sure for huge income.