Why Do People Prefer Digital Banking Transactions?
What do you think of online banking? Do you find digital banking a convenient alternative to visiting your local branch? Or does digital banking still need to live up to real banking for you? Over the pandemic, many people have switched to contactless payments and contactless digital banking. But what’s causing this change? What is it that people like like about banking online?
There have been many interesting new banking trends this past financial year. But one trend that just keeps getting more and more popular is digital banking. So, why are more and more people moving towards this style of banking? What is it that’s so appealing about digital banking? Let’s explore this:
More Control
Have you ever bought something at midnight? With digital banking, there are no restrictions on when you can bank. So whether it’s a midnight snack, transferring money to a different account or depositing a check, you can do it any time of day.
What’s more, this control is only growing. Day by day, digital banking apps are starting to offer more features. You may already benefit from features like low-balance notifications or automated saving. Maybe you can even start using a new debit card in your app immediately. And this list of features is only increasing. Soon, you will be able to do everything you need to, banking-wise, from an app.
Greater Convenience
The main benefit of digital banking for anyone has to be the ability it offers to bank from wherever and whenever you want. After all, your smartphone is readily available for 24/7 account access. As we mentioned, mobile banking allows you to deposit checks, transfer funds, check your balance and alert you to overdrafts and transactions. Any time of day or night!
When you go digital, not only is it more hygienic for all involved, but it’s also more secure – there’s no cash to steal physically – and you can keep better track of your digital transactions throughout the day. This allows you to manage your finances better.
More Features
Yes, digital banking typically offers far more features than banking in person. You might not always be able to do things like cashing a cheque or opening some accounts, but digital banking has branched out in recent years. It’s not just online-only banks that can scan your ID, notify you about transactions and even let you use crypto or hold multiple currencies. No – today, things like tracking down your nearest ATM, freezing your card temporarily and sending money in seconds are all standard features with digital banking. But, of course, the one feature that’s hardest to find is a bank that finds that perfect tradeoff between the human and the digital.
Superior Security
The most important feature for any bank has to be security. There have been concerns about the safety of digital banking compared to doing things the traditional way. For example, if you get mugged, you notice it happening. But with early online banking, you didn’t necessarily see the theft until you decided to log back in.
However, nowadays, digital banking is far more secure than using cash. With instantaneous transaction alerts, you quickly pick up on any rogue transactions and deal with them immediately. In addition, banks can spot suspicious digital banking transactions and even block them if the item or location doesn’t look like something you’d buy. Strange transactions may get prevented thanks to biometric authentication and multi-factor authentication.
What about your money existing in a different country with different protection laws? In the past, there were concerns that your money wouldn’t be as safe as it is at home. However, nowadays, most banks are insured by the Federal Deposit Insurance Corporation. A bank insured by the FDIC is less likely to go under, with protection in the event of bank failure.
More Ethical
What do you think of when you think about banking? Nameless, faceless large corporations that take your money and do who knows what with it? Some banks can indeed be dubious, and in the past, some digital banks have been that unknown newcomer. But did you know that many modern digital banks make it their mission to do some good in the world?
Digital banks operate with a reduced carbon footprint thanks to near-zero overheads and no physical high street presence. But some are going beyond this. One mainly green startup is Aspiration bank. This bank plants trees by rounding up every transaction, improving the world with every coffee or big shop. Even their debit cards are made from recycled plastic!
Similarly, Bunq has planted over three million trees on behalf of its customers by planting one for every €100 spent. Bunq also has a wide range of other eco-friendly products.
If you’re more interested in sustainable investing, the app Clim8 enables you to invest your savings into great causes. You can create access to clean water, fund greener energy, or tackle world hunger and more sustainable food. Much better than just banking with the first high street bank you see!
More Accessible
Many local bank branches are closing down. That bank you’ve always gone to down the road for generations is no longer your only option, or maybe not an option at all. Even if a branch is still open near you, the building may be difficult to access or only open for limited hours. That’s where the advantage of digital banking comes in. Digital banking is available 24/7, at any time, place, and in any language. If you feel like opening a new ISA or changing your account type, you can do this right away without needing to book an appointment. If you want to explore your bank’s range of financial products, you can do it in the app without needing to take loads of leaflets home! Just scan your ID in, and your account is open. Whatever you need to do, you can do it quickly and easily with a digital bank.
