One of the fastest-growing segments of the financial services industry is the movement of retail banking customers from traditional banking solutions to new digital banking service providers. To be fair, some of these “new” digital banks are actually just the traditional banks with a new shape and format, and sometimes even a different name.
But make no mistake: Digital banking is quite different from traditional banking and it offers a range of outstanding benefits to consumers and businesses. We’ve outlined six major advantages of digital banking versus the traditional method based on current practices and research.
- Better Pricing Models
Typically, digital banking institutions have much more effective and user-orientated pricing algorithms for everything from overdraft to wire transfer charges. They are much more flexible in terms of pricing and this is so because they understand the real business needs of their clients. But above everting they understand their client’s business models and the demands of the market they operate on.
Yes, we talk about the digital advancements and the way this shapes the business landscape across the world. All this may be enabled by the lack of a physical location for you to visit when you need to do so but also is part of the overall drive on the part of banks to make account management as hands-off as possible thanks to technology.
The more tech handles traditional banking processes for you, the more optimal the cost of services provided by the institution, naturally.
To make it clear, by optimal we do not always mean cheaper. What we mean is that the pricing models are different and custom to end clients but and formed in such a smart and effective way that ultimately enables businessess to expand and grow further in the digital economy.
- Easier Access
While digital banks lack a teller window you can go visit in person, they do tend to have some of the most robust digital interfaces in the form of apps and websites. These central hubs are where you will conduct most of your banking business as well as resolve any issues you might have. The definition “24/7” now gets completely new meaning under the definitions outlined here.
- Time efficiency
Need to make a deposit, bank transfer, account check-up or change information? All that can typically be done via the website or an app. Need to apply for a credit line, loan, or another service? Again you will need to check out the website or use the app. With digital banking, all of the processes are handled online and, because of this, everything moves much more quickly. Decision and business processes too.
- Automated Services
From making regular payments to helping you structure robust business transaction templates, digital banks offer a range of services that really take the pain out of clumsy and inefficient financial management. In addition to this, these automated services can help customers find better banking products than those they currently have.
- Excellent Customer Service
While traditional banks often have excellent customer service, digital banks have to go above and beyond when it comes to making customers comfortable with the format. That’s because digital banks can also rely on and work with really effective KYC standards and procedures. There are of course traditional banks that also apply such standards and procedures.
- Regulations and Standards
Financial or institutional regulations do not come last when we speak of digital banking solutions. Quite the opposite. Digital banking services are also on the radar of regulators and institutions and do overgo the same procedures and regulations as traditional banks.
- One platform. Multiple banks.
You may be surprised to understand the powerful solutions Monneo offers to its clients. But here are the facts. Monneo is a Virtual IBAN provider, working with a network of established European based banks. We can provide eCommerce merchants with multiple bank accounts at multiple banks.
Through our technology platform, we break down legacy barriers and connect online merchants with leading European banks who can provide virtual IBAN accounts and digital payment services around the world. The digital banking solutions we offer are a completely new way for PSPs, ISOs and Gateway providers to deliver digital banking services to online merchants.
Contact our team and learn more about how Monneo can help you and your business with cross-border digital payment solutions or apply directly for your virtual IBAN on our website.