Digital Bank

[davis196]

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 can't think of any pros when it comes to using a digital bank instead of a traditional bank. In both cases you just give your money to the bank and expect the bank to pay you interest after a certain time frame. What happens when the bank goes bankrupt? Some bank deposits are guaranteed by the government in case of the bank going bankrupt. Are the deposits in a digital bank guaranteed by the government? What if the digital bank doesn't have a full banking license? What if the digital bank lacks good customer support? What if the digital bank finds  ways to block your account and keep your money? Does this make it worth it to deposit money in a digital bank just because it offer higher interest rates?
Both digital and traditional banks kinda suck in my country. The interest rates are so low that it's not worth it to save money in a bank account.

[m2017]

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. 

Yes, there is a digital bank in my country, but I am not their customer.

Digital or not, a bank is still a bank, that is, a commercial organization making money from your money. The conditions that digital banks provide are still not the most favorable for users, but in some cases, this may not be the worst solution.

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? 

This may be due to cost savings on renting offices and premises.

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

The advantage is that you save time, because you don’t need to go to the service office, stand in line, and all issues related to the bank are resolved at home on the couch.

At first glance, digital banks look like the next step in the evolution of banks, but whether this is actually the case must be assessed by how these banks will fulfill their obligations under unfavorable conditions, such as financial difficulties and bankruptcy. 

[harapan]

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?

Online banking usually comes with low fees charge for transactions,Digital banks offer major advantages in terms of service availability and feasibility,and they provide 24/7 access to ones businesses and online activity by offering full online services for their clients and customers.Digital banks as the name implies,they're quicker to adapt to newer technological system that corresponds to the digital age in the society.In one way or the other,digital banks have similar benefits as bitcoin to fait and its so fantastic to notice the positive impact they offer.

I don't really know about any negative feature of using an online bank.One of the things that make them offer higher interest rate to thier customers is because of the exhibition power and impact that they intend to introduce.Consider bitcoin as an example,bitcoin saw the challenge people face with fait banking system and it eventually came to rejuvenate and transform the living standards of people.Online banks are offering useers what traditional banks are unable to fix,thereby, online banks are using their counterparts lapses to outsmart traditional banks in customers engagement and popularity.

 While digital banks offer several advantages, traditional banks still have a significant role to play,normally,there is supposed to be an existing one that operates to other people's choice of decision and convenience.But digital banks are recently taking over in my country.
Majorly,the inventors of this online banks have initially suffered and endured the failures from traditional banks,so that's where the change emerged from.

[kingvirtus09]

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.

If there is a risk in a traditional bank, in a digital bank, the risk is doubled or more. I have some acquaintances who put a large amount in the digital bank, and there came a time when there was a problem that someone made a transaction that he did not make, and there was still 11k that was taken out of his digital bank.

Then the worst part is that he has nowhere to run because he can't get close to the digital bank that he trusts. He also said that he doesn't remember that he had a link that was clicked because he said that he only uses it for online transactions most of the time, such as online shopping, grocery shopping, and money transfers.

[Republikcoin.com]

If there is a risk in a traditional bank, in a digital bank, the risk is doubled or more. I have some acquaintances who put a large amount in the digital bank, and there came a time when there was a problem that someone made a transaction that he did not make, and there was still 11k that was taken out of his digital bank.

Then the worst part is that he has nowhere to run because he can't get close to the digital bank that he trusts. He also said that he doesn't remember that he had a link that was clicked because he said that he only uses it for online transactions most of the time, such as online shopping, grocery shopping, and money transfers.

The risks of saving money in a digital bank are like that, because every saver must really protect his device from unknown links so that his device can remain safe from any attacks. Even though I have never saved money in a digital bank, when I think about risks like this it can at least give me a little insight that saving money in a digital bank also has heavier risks even though it is also accompanied by better security. However, traditional banks also have quite a few risks because the bank's escape and the burning of the building they own can also be a very significant obstacle for customers.

[kryptqnick]

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?

In my country, there are a couple of banks that are the most used and well-known, and one of them is actually a digital bank. Like you're saying, there are no physical bank departments, and everything is done online. If you want to order a physical debit card, it will be shipped to you, and everything else is just something you do in a smartphone app. I like it because it's very convenient, more user-friendly than online-banking of traditional banks, and there are fewer questions asked or issues with making payments via this bank. As long as a digital bank is highly reputable within a country, I think it's fine to use it.

[BABY SHOES]

Digital bank,? I've heard about this.

If they don't have a building will people believe them? Then this looks more anonymous especially giving high interest rates, maybe this will be exactly the same as conventional banks except that now digital banks are widespread and of course offer high interest rates.

Surely digital banks will be supervised by the government so this is no different from conventional banks but they are in terms of high interest that may be their advantage and easier access from mobile.

[Youngkhngdiddy]

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?

Online and digital banking allow users to access their accounts and manage their finances anytime and anywhere with an internet connection. They can perform various transactions, such as transferring funds, paying bills, and depositing checks, without visiting a physical branch. With online banking, users can complete banking tasks quickly and efficiently. They can avoid long queues and waiting times at physical branches, as most transactions can be done with just a few clicks or taps. It also services are available round the clock, providing users with the flexibility to manage their finances at any time, including weekends and holidays. This accessibility is particularly beneficial for individuals with busy schedules or those living in remote areas. Digital banking platforms often provide users with comprehensive tools and features to track their spending, analyze their financial habits, and set financial goals. This can help individuals gain a better understanding of their finances and make informed decisions.
 They are also some disadvantages of using the digital bank, I guess that’s why everything in the world is in equilibrium, whatever has an advantage must also have a disadvantage. Using online and digital banking requires basic technological literacy and access to stable internet connectivity. Individuals who are not comfortable with technology or do not have reliable internet access may face difficulties in fully utilizing online banking services. While online banking systems strive to ensure security, there is always a risk of data breaches, hacking, or unauthorized access to user information. Cybercriminals may attempt phishing attacks or employ other methods to gain access to sensitive data.

[SatoPrincess]

 Online and digital banking allow users to access their accounts and manage their finances anytime and anywhere with an internet connection. They can perform various transactions, such as transferring funds, paying bills, and depositing checks, without visiting a physical branch. With online banking, users can complete banking tasks quickly and efficiently. They can avoid long queues and waiting times at physical branches, as most transactions can be done with just a few clicks or taps.

Traditional banks have mobile bank apps that allow you to make all the transactions you mentioned. In my country, most of the banks have accounts on social media platforms where you can reach customer service and resolve issues without having to go into a bank. So what exactly is the benefit of using a digital bank here?

Digital banking platforms often provide users with comprehensive tools and features to track their spending, analyze their financial habits, and set financial goals. This can help individuals gain a better understanding of their finances and make informed decisions.
 

And traditional banks don’t?

[ringgo96]

Digital bank,? I've heard about this.

If they don't have a building will people believe them? Then this looks more anonymous especially giving high interest rates, maybe this will be exactly the same as conventional banks except that now digital banks are widespread and of course offer high interest rates.

Surely digital banks will be supervised by the government so this is no different from conventional banks but they are in terms of high interest that may be their advantage and easier access from mobile.

Currently digital banks are developing a mission to be able to compete with conventional banks, which is a big problem for them is the trust of customers in them because some of the digital banks do not have buildings, but there are also advantages because they are easily accessed by users via mobile phones and higher interest rates so that it will be easy to attract customers, and now everything is facilitated through mobile networks so that digital banks will quickly develop in all over the world.

[Oasisman]

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?

Too risky.
I guess everyone is well aware of all these digital banks popping out of nowhere and offering huge interest rate and huge credit limits. But most of the huge credit limit offers are just click baits. I saw a lot of ads in social media platforms and even Google play are showing stuff like these.
Well, the reason to this is that because they are still new compared to the established physical banks, they will need something that would attract investors, savers, and other people who needs banking services. Though this is a great and convenient banking innovation, but still it's too risky entrusting your money over a company that has no physical establishment. Instead of using these online banks, I'd rather use the online banking apps from my local bank. They have the same online functions though, both are convenient to use, but my local bank is far more reliable.

[Albarq]

l think banks in digital nowadays are competing at the forefront, right
compared to traditional banks
by prioritizing faster transactions in your hand more easily, by providing high interest

but security issues in digital banks are a consideration

What's more, our balance is quite large, and transactions are difficult in areas where the internet doesn't reach.

[Hewlet]

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?

one of the major factors most users of digital banking consider that makes them prefer it to the traditional banking system is basically due the the convenience they provide and the stress free nature it has. Most traditional banking institutions have been known to be prone to series of network issues and poor customer services whenever you visit them for some minor issues and what's happening is that mobile banking apps are just improving on the weaknesses of tgw traditional banks to there own advantage.

You know, as the world continues to evolve by the day, decentralized systems has come to gain dominance over the traditional and outdated system of making financial transactions and whatever appears as a source of liberation from the over regulatory policies of most traditional bank is going to gain public acceptance regardless of whatever additional cost it might involve.

[EarnOnVictor]

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?

Perhaps, you are overemphasizing this, and those companies I believe you called Digital banks are Fintechs also providing banking services. I don't know a bank these days that has not gone digital, but the fact that those Fintechs providing the banking services often conduct and conclude almost all their transaction online makes them unique, but some call it odd since they are used to the bricks-and-mortar style.

Mind you, they are not 100% online, they have physical offices but it is not like those commercial banks that will have their bricks-and-mortar virtually everywhere possible. Theirs is limited, and also optional, however, they must have their headquarters somewhere, as it is mandatory by the law.

Warning: You should never deal with them if they are not in your country or any country without a traceable regulation by the central bank and also insured to avoid the loss of funds. I have been dealing with two of them in my country for about 4 years now with no serious issues to date. They solve my banking issues as fast as possible and are polite, needless to say, I hardly have a single issue with them in a long period. I also noticed that their technology is better than the regular/commercial banks. I believe that since they know they are mostly online, they invested so much into it.

Lastly, contrary to your view, the fact that they are not operating the bricks-and-mortar type of service does not mean they are not employing staff and spending huge money for setups and maintenance. They also have a huge team of customer support staff and I've seen one before, they are in their hundreds in a single building. Though I am not in the system, tech-savvy guys and companies are not taking it lightly with them when it comes to billing.

[fuguebtc]

Both digital and traditional banks kinda suck in my country. The interest rates are so low that it's not worth it to save money in a bank account.

What do you expect from the bank? High interest rate and safety? If banks can pay high interest rates, all people will deposit money in banks to earn interest and not need to work, and how will the national economy develop ? Banks are just places for us to store savings or provide financial services such as loans and mortgages when we need money to work . Don't expect passive income from it and don't criticize banks when they offer low interest rates because they are doing business, not charity.

[Kriptogram14]

Both digital and traditional banks kinda suck in my country. The interest rates are so low that it's not worth it to save money in a bank account.

What do you expect from the bank? High interest rate and safety? If banks can pay high interest rates, all people will deposit money in banks to earn interest and not need to work, and how will the national economy develop ? Banks are just places for us to store savings or provide financial services such as loans and mortgages when we need money to work . Don't expect passive income from it and don't criticize banks when they offer low interest rates because they are doing business, not charity.

The bank is a place to store money, not a place to make a profit, if we really have a lot of savings, we apply for a deposit to the bank so that our money in the next few years will benefit from the results of turning over money at the bank, but there are terms and conditions too, for those of us who have low incomes , we just need to save money, as small savings, but banks also have monthly interest deductions for account book balances and ATM card fees, usually MSME entrepreneurs apply for credit with the lowest interest, because banks now have credit services for entrepreneurs MSMEs and lower middle class, the aim is to help small entrepreneurs to increase the business capital they have, with interest that is quite small compared to normal credit, the interest can be many times higher, but be careful if you start playing with the bank, just don't let us get ripped off. poor by them, because they only look for customers, not relatives, don't let us fall into the world of playing interest until we become bankrupt and lose money.

[Natsuu]

Digital banks are like traditional banks but without the fancy buildings which saves them a ton of money. That's why they can offer better interest rates. Convenience, lower fees, and those sweet interest rates. But you might miss out on in-person help and there could be security risks. It's a trade-off between convenience and personal service. If you're cool with doing everything online and want to earn more on your savings, digital banks are worth checking out. Im very skeptic when it was first advertised in our country but by the time I use it, it was very convenioent. Ofcourse i did mu research first. Just make sure you're okay with the potential downsides before making the switch

[AYOBA]

People keep money in digital banks not because they expect to earn from it, because centralization is simply for saving money when you need it and getting it back, as opposed to a physical bank or physical investment, where you will benefit from saving your money. That is why many individuals prefer to utilize their money in a real bank, where no one will charge or remove fees for the bank's maintenance.

But to be honest, online banking has benefited many people nowadays since whatever you want to accomplish, online banking is much easier and faster than physical banking because you can do it from home and operate your bank without visiting any actual bank. Before consumers had to to find a physical bank branch to complete their transactions, but with online banking, that is no longer necessary, technology has made life easier in every way.

[cxtreenal]

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?

Through the traditional bank, you had been standing in line for a long time and used to deal with money .... After a while you got the chance and the waiting end. And now you are going to the booth and doing the transaction without any trouble. In this case you have to pay some annual fees. Even with your cellphone you can make money transactions. And the first ideology of the digital currency is probably from Cryptocurrancy (Bitcoin).

[alani123]

The worst thing with digital banks is that they will often have an abundance of customers and lack of good service. They aren't forced to provide services with a quality assurance as high as bricks and mortars banks. Usually these banks are domiciled in a different jurisdiction than you, and in case they do something wrong, you oftentimes can't even report them.

For safekeeping money I like to utilize a local bank. Yeah sometimes digital banks will offer savings accounts with higher interest too. Make sure with these services though that you're covered by the deposit guarantee scheme. Because oftentimes they'll try to mask an investment type service as a bank account, which isn't nearly as protected. Also don't base your everyday transactions too much on these banks otherwise a cut off from their services might affect you severely.