What is a digital bank?
A digital-only bank is one that provides all its banking facilities online and through app platforms on mobile and tablets. Digital banks have no need for physical branches and their services are provided using automated processes and real-time updates and offering customer support through in-app chat, for example.
While we know that many of us still prefer to visit high street bank branches, there’s a proven audience, largely consisting of millennials, who are interacting regularly with digital-only bank apps.
Digital-only banks tend to provide certain features and benefits to their users that are particularly attractive to millennials, for example spending forecasts, alerts and savings pots.
Why use a digital bank?
Because digital-only banks are primarily operated through an app, users can have greater control and clearer visibility over their finances.
Up-to-the-minute spending updates, monthly reports, commission-free spending abroad and the ability to instantly freeze and unfreeze cards are just some of the benefits to using a digital-only bank. A digital-only bank may also offer features like bill-splitting, instant PIN changes and even the ability to trade cryptocurrency.
Digital banks and challenger banks are the ones staying ahead of the game with innovative features to help you stay on top of your finances, so it’s likely you’ll be the first to benefit from the latest banking innovations