Digital banking: Advantages and disadvantages Is it worth having one?

Digital banking is a type of service that has been gaining more and more space in the market, not only in Pak, but also in all countries of the world.

Having an account in a digital bank is not very different from having an account in a physical branch, the differential of this service is that everything you need to do, you will do it through the internet, using the bank’s website or application on your cell phone.

After opening an account in a digital bank, you will no longer need to go to a branch to do any banking service.

You will check your balance, your account statement, make money transfers, pay your bills and any other type of thing you do in a bank using your cell phone or your computer.

The digital banking options even allow you to make check deposits in your account through images, in addition, you can also make deposits by generating boletos in the bank app.

Only cash withdrawals cannot be done fully digitally, for obvious reasons. But there’s nothing to worry about, just use the digital bank card, which will arrive at your address after opening the account, to make withdrawals at any 24-hour ATM.

And normally, banks don’t charge any fees for this and don’t even limit the number of withdrawals you can make in the month.

But let’s face it, these days you can pay pretty much anything with a card, so withdrawing cash might not be that big of a need.

 How do digital banks work?

A digital bank works in a very simple way and opening your account is usually very easy.

The first step is to register, sending your documentation through photos and your data. All this is done on the website or app of the digital bank you choose.

Usually, within a few days, after an evaluation of the documentation, you receive a contact from the Bank, with your account details and you can start making your transactions on the website or in the app.

One of the biggest advantages is that an account opened in a digital bank is that these banks do not usually charge fees for any type of transaction. In some cases, it is even possible to make investments in this type of bank, which will yield even more than in traditional banks.

Perhaps you are now asking yourself how a digital bank maintains itself then, and the answer is simple: through investment in stocks and investments.

This type of bank does not charge a fee because it manages to save a lot, since it does not have expenses with a physical structure, it needs to hire fewer employees, it does not spend so much on equipment, among other things;

As a result, there is practically no need for the digital bank to charge fees from its customers. Profits are guaranteed depending on the applications.

Advantages of digital banks

The advantages of the service of a digital bank have already been almost all listed above. But if we can talk about the main ones, it would be especially two:

  1. You won’t have to pay any fees to have all the banking services you need at your disposal;
  2. You will never need to wait in line at a bank to solve your problems;

Oh! But what if I have a problem with my account? Don’t have a physical agency to solve? Perhaps you are questioning yourself. Well, if you have a problem with the bank, in a few minutes you can solve it through the online support of the app or the website.

It is important to note that not all digital account services available on the market are actually fee-free. Before opening yours, it is interesting that you research to make sure of this. However, we can say that most digital banks do exempt customers from fees.

In addition to saving time, no longer having to go to a physical branch and saving money, since there are no fees charged, there are other advantages related to digital banking services, such as:

  • Easy and uncomplicated access;
  • Access to services any time of the day, any day of the week;
  • Innovation with access to all the services of a traditional bank completely online;
  • Unlimited withdrawals from the 24-hour Bank network;
  • Transfers to the same bank are unlimited;
  • Transfers via DOC or TED to the same bank or not, are also unlimited;
  • You pay your bills and bills at no additional cost and without having to leave your home;
  • Check your account balance and statement without paying fees and without leaving home too;
  • Make all transactions over the internet, using your phone or your computer, without paying fees for it;
  • You have a debit card for purchases and withdrawals available at no cost and you can request the credit function as well;

In addition, there are some digital banks that allow you to make investments in investments easily and without leaving your home. These applications usually even offer a higher yield than keeping your money in your savings account.

Disadvantages of Digital Banking

Not to say that everything is rosy, a digital banking service can have its downsides as well. But being honest? Perhaps they do not exceed those of a traditional bank.

Most of the points that can be seen as negative in digital account services are more based on prejudice than real problems.

Most people may be a little suspicious of digital banking services, after all, they are a relatively new option on the market and a lot of people still don’t know.

Another factor that may worry the user is the fact that digital banks do not have a physical branch, but as we have said before, if you have any problems, it is easy to solve them through the support of the application or the bank’s website.

Another disadvantage in relation to digital banking is the absence of physical branches, with this, not everyone offers cash withdrawal.

While this may seem like a problem, it’s not that difficult to get around the situation.

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