Digital Banking: Your Future Simplified
Nearly two-thirds of the U.S. population uses digital banking services, of which 27% exclusively tend to their finances online. What’s even more interesting is that approximately 80% of millennials claim to use Digital Banking in contrast to less than 50% of baby boomers who dabble in the service. The increased popularity of Digital Banking within younger generations signals an important shift from brick and mortar centered institutions to ones operating online. Nonetheless, regardless of where you keep your money, this new financial climate demands your attention as it boasts the potential of great benefits that are otherwise unrealized in Traditional Banking.
What is Digital Banking? Digital Banking refers to banking institutions who offer their services online. Among its many benefits over a traditional bank include efficiency and simplicity. You would never have to visit the bank, wait in lines, carry cash on hand, or fill out lengthy paperwork. If that isn’t convincing enough, you’d be pleased to find out that it’s relatively easy to sign up, check your balance, and access real-time analytics that correspond to your spending habits: an easy way to monitor your spending and adhere to a budget. Some banking institutions even partner with block-chain technologies that offer access to crypto payment services. The flexibility and efficiency of Digital Banking ultimately offers you an easy way to manage your finances from anywhere in the world. Even so, it's important to acknowledge some potential drawbacks associated with this emerging financial technology.
While Digital Banking is undoubtedly a critical step forward in the fintech space, it brings up a few concerns that are yet to be completely answered. First off, managing finances digitally opens the door to cyber security threats. There is always the possibility of data breaches and fraud. In fact, financial fraud is considered the number one internet crime worldwide. As such, it's important to err on the side of caution when signing up for a digital banking service. Always check with local banking authorities regarding the reliability and safety of a digital bank. Another cause for concern is customer satisfaction. While there is great benefit in having your money at your fingertips, there are times when you may require assistance: including questions regarding your money, offered services, and app features. This is an area where Digital Banking falls short. There are limited opportunities to have questions answered through a certified source.
Unlike in traditional banks, where you can ask the banker and other associates about any pending questions. Moreover, there is a level of trust and rapport one builds in person that is hard to garner through digital means. In summary, until the gap between Digital Banks and clientele can be stitched, alongside with any looming security threats patched, it may noy be worth making the switch to Digital Banks.
What Does This Mean for the Future:
Digital Banking is undoubtedly a growing space that has the potential to replace traditional banking. Among the various utilities it offers and efficient technologies it presents, it also allows you to save countless hours that would otherwise be spent at a brick and mortar bank filling out paperwork and waiting in lines. However—even with all its glamorous appeals—it is still worthy to note that Digital Banking has its fair share of faults and whether or not you are ready to make the switch rests in your personal preference.