In the past few years we have all had a lot of upheaval. For me however there are two key things which stick out. Firstly I relocated from London to a small town in the countryside, and then, you know, the pandemic happened.
One of the first financial issues I came across after my relocation was my bank. The bank I was using was up and coming in London and large cities, but where I live, there are no branches anywhere near where I live. The nearest branch to where I live is over a 30 minute drive, and that’s looking it up not in rush hour, and not accounting for parking fees and traffic (a city centre). Whilst the app was improving, you couldn’t at the time pay in cheques via the app like you can with other banks now. Not that I receive a lot of cheques but the odd time some elderly relative sends you a birthday or Christmas cheque or someone who doesn’t do online banking needs to pay you meant that paying in a cheque was a massive mission and involved an almost full day trip. If I’m paying in a cheque I don’t want to be spending a small fortunate in time and money in order to do it. Now I bank with a bank where you pay in cheques through the app – which if you ask me, is magic!
During the pandemic, we had to adjust to doing a lot of things remotely and this includes banking. Banks were forced to change their operating model, closing branches temporarily (and some permanently) and having staff work remotely. Already digital and online banks, thrived as they were already set up to operate in a digital environment. There are many perks of using a digital bank and I believe that model is going to continue to grow as more and more people become used to the technology of doing things online (fear of technology and lack of confidence are common reasons I come across when asking people why they don’t want to use online banking). Other reasons why digital banks are great are:
- Digital banks often are able to provide better remote service as they are set up for this. Whilst if you need to speak to someone on the phone there can be a waiting time, any task you can do online or in the app you can do with no waiting, no queuing in a bank and at all
- They often have lower fees as their overheads are lower.
- The lower overheads can often lead to a higher interest rate as well
- Due to being a digital service, they will be investing more in digital technologies, which in turn can mean your money is safer, and the apps and websites will be safer and more secure too.
So are you convinced yet? If so, find out how to open a digital bank account now and find out what banks are available in your area or territory. Another perk of digital banks is that they also allow you to open a new account much quicker and easier than the traditional method, as you don’t need to make a face to face appointment or go into branch. You can usually fill out the forms online and upload any required ID through the app or from your smart phone. Usually you can get an answer right away as to whether your account application has been accepted.
Let us know in the comments below if you use a digital bank and what your thoughts are.
One Reply to “Benefits of using a digital bank”
Don’t the banks have drive through tellers with the pneumatic tubes that send a capsule to your car that you put your check in and then it sucks it to the teller inside and then she sends your deposit receipt back to you the same way, and any money you asked for? That’s how most people handle checks in the US if they aren’t sending in the digital picture. There is no face to face so Covid didn’t impact that at all. Over here there is a limit to the size check you can deposit via your phone app and its only $2,500 to $10,000 per month, not enough to handle a big check. Those may just be US limitations.