Digital banking vs traditional banks

 

 

 

Digital banking is no longer a novelty as more and more customers discover the advantages of doing all their banking online. And both personal and business customers are seeing the benefits. Due to the technology evolving quickly, new features and services are being added all the time, enhancing what we can do with digital banking.  

Traditional banks are seeing that digital banks are a real threat and are responding by trying to offer similar online services. However, for the most part, these are based on an archaic banking model and simply can’t compete in terms of pricing, functionality or added value features. 

 

 

24/7 banking has arrived 

 

At a time when just about everyone has access to the Internet, even on the move, banking online is easier than ever. Now, you can access your account anytime, making money management effortless, which is especially handy if you’re running a business.  

The new breed of fintech companies have made it easier to connect and manage your financial life on more platforms, such as mobile devices and tailor-made apps, so you can connect with customers round the clock. These days, online banking isn’t simply about checking your balance and paying bills – you can do a whole lot more, such as receiving payments from customers.  And because of Open Banking, you can do it all in conjunction with your old traditional bank account. 

 

 

More convenient 

 

When was the last time you took a cheque from a customerProbably not too recently. Because more people are making payments online, there is less need to go to a physical bank to lodge cheques or cash.  

Even ATM usage is falling as contactless payments are being completed more than ever before. The Covid crisis has added to this as fewer people want to handle money due to the risk of infection. This is set to continue when the pandemic has passed.  

Best of all, many new online banking platforms interface seamlessly with other software packages, such as those that handle accounting, taxation and payroll. 

 

 

More choice 

 

Fintech companies, such as KoalaPays, provide customers with more choice than ever before. For example, we offer unique services targeting specific needs of our business customers, and adding more value than a generic traditional bank ever could.  

Our easy-to-use platform allows clients to hold and convert over 20 major currencies, which makes cross-border payments quick and secure. Furthermore, having a fully digital account, makes managing your cashflow and identifying how you can improve your revenue streams easier than ever. 

 

 

Fewer fees 

 

With no costs for maintaining physical branches, online banks are very cost-efficient, especially as many transactions carried out online don’t require third parties, as it is the case with traditional banks. Automation of many banking processes also means fewer staff are needed. All this adds up to considerable cost savings over the traditional banking model – savings that can be passed onto customers meaning fees are exceptionally low and, in some cases, only charged for premium services. 

 

 

Faster and more efficient 

 

Everything is faster and more efficient online and this applies equally when it comes to banking. Since a lot of processes are automated and stored in the Cloud, paper errors are significantly reduced. Even customer support is better. You can get answers to most of your questions by email, through an app or by using a chatbot. 

The traditional banking model has become outdated. Fintech companies have made digital banking faster, more convenient, cheaper and more useful for customers. New functionality makes it easier for clients and businesses to manage their finances in ways that were impossible before and provide new types of innovative services that meet the unique needs of their customers. 

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