What is “digital banking”?
Imagine you’re shopping and need to transfer money to cover a transaction. Maybe you need to pay the babysitter on a Sunday. Or you’re out of town and want to check your balance. What are your options? Drive across town to a branch? Try to navigate your financial institution’s telephone banking system? Like many consumers today craving convenience, you might try a convenient alternative to traditional banking channels: digital banking.
“Digital banking” is simply a form of banking you can do online. Consumers have been using digital banking services for years. In fact, according to Forbes, about 76% of consumers have used their primary bank’s mobile app in the past year for everyday banking tasks like depositing checks and checking their balance. Digital financial services can include web and apps that let you access accounts, open new cards, and accounts, pay bills and even deposit checks.
Let’s take a deeper look at the benefits of a digital banking experience.
Who offers digital banking?
Nearly every financial institution offers digital banking. From large traditional banks to credit unions like Greater Alliance, you can find online banking services almost anywhere you want to bank. Keep in mind that having an account at a traditional bank or credit unions still allows you the option of a physical branch when you prefer, in addition to the latest digital banking services.
Types of digital banks
There are four main types of digital banks: new banks, neo banks, beta banks and nonbanks. Each offers a similar array of services that can look identical to users. The difference is how they’re set up in terms of licensing and partnerships.
New banks are essentially the direct competition to large traditional banks, like popular national chain banks. New banks offer the same services and operate in the same way as traditional banks—except they operate only online and focus entirely on being user-friendly.
Neo banks don’t need a banking license. Instead, they partner with financial institutions to put their services online. Customers will need to have an account at the partnering financial institution, then they can use the fee-free services and user-friendly website and app of the neo bank.
Beta banks offer digital financial services using the banking license of their parent company. These usually offer fewer services but are available to a lot of people.
Nonbanks have no connection to traditional banks. Instead, they provide financial services independently from banks.
What are the biggest benefits of digital banking?
There are many advantages to having an account with a digital bank. Some of the top benefits of online banking include:
24/7 access to your accounts
One of the greatest benefits of digital banking is 24/7 access to your accounts, with no need to consider bank holidays or business hours. With a digital banking app, you can manage your accounts anytime, anywhere, and even deposit checks, move money between accounts, pay bills and apply online for a loan.
Simplicity and ease
Digital banking experiences are usually built to be highly user friendly, for all ages. You should find most digital banking apps and sites intuitive and easy to use. Common banking tasks like mobile check deposit often include on-screen instructions to make the whole experience simple, even for those who aren’t tech-savvy.
Are digital banking security concerns keeping you from trying online and mobile banking? There’s always a risk in putting your information online, but digital banking platforms are some of the most secure available. That’s because financial institutions often have entire teams devoted to ensuring customer information stays secure and use proven measures like encryption and multi-factor authentication to keep your financial information safe in their digital banking platforms.
What do digital banking services include?
Online banking and mobile banking apps let you do many of the everyday tasks you’d normally do at a branch. With digital banking from Greater Alliance and other digital banks, you can:
- View your statements and financial documents anytime, anywhere
- Pay bills in a couple minutes, with just a few clicks
- Connect accounts from other financial institutions to see all your financial information at a glance
- Transfer money quickly to cover expenses or pay anyone virtually
- Deposit checks virtually without having to travel to a branch
- Chat with support staff securely to get quick answers to questions
Digital banking is one greater way to convenience!
At Greater Alliance, we recently upgraded our digital banking experience to include the latest features in digital banking—all at your fingertips. Opening an account and enrolling in online banking is easy. Contact us today to start banking digitally.