The advances that technology has opened up many economic opportunities to different sectors of the market. One of these sectors is banking, which has begun to get heavily involved in the digital world. Now it is the banks that are going digital.
Digital banks are no longer a novelty at all, more and more customers are joining them for the many advantages they offer. As technology is constantly evolving, new services and functions have been added to these banks, improving digital banking in general.
Traditional banks have realized that they have a big competitor and that they are a threat, so they have started offering their services online as well. Even digital banks have made their way not only as an alternative to traditional banking, but as the favorite option of many when it comes to managing their finances.
What is FinTech in banking?
Fintech is the combination of the words ‘finance’ and ‘technology’. This is a term that is used to describe the changes that are occurring in new technology, with the main objective of improving the use of products, their delivery and automating financial services.
This technology helps entrepreneurs, business owners and consumers to manage their finances in a simpler way, together with a commercial process that is carried out digitally.
This is a technology that was integrated to completely digitize banking. To access digital banking and online accounts, for example, you will need to have a computer or smart device.
Today, fintechs have changed the perspective of the services that a bank must offer. Different services are now included, such as the use of cryptocurrencies, foreign currencies and the possibility of viewing and making Forex transactions.
Digital banking or traditional banking?
The main objective of both services is to offer financial services to their clients. Banks today rely on a financial system that is made up of different old-fashioned and traditional procedures, as they lack a certain agility and speed. Every day consumers demand much more, so financial solutions have been sought to help meet their needs.
When it comes to being advanced and innovative, traditional banks are not on the same page, since they are falling behind. Digital banks, along with their online accounts, are evolving much more, taking a step forward to new technologies.
Customers have preferred to use them, mainly because they do not have to go to a branch to carry out their procedures, but also because of the ease of carrying out different transactions and their much lower prices.
Are digital banks an alternative to traditional banking?
The modernity that technology has had has opened many opportunities to different sectors of the market. One of these sectors is banking, which has begun to get involved in the digital world. Now it is the banks that are going digital.
Some technologies such as blockchain, big data or the cloud have shown that their usefulness is incredible, but on many occasions they tend to be threats to the great powers of the financial industry.
These potential threats are known as “fintech”. This term is a combination of the words ‘finance’ and ‘technology’.
In previous years, fintech was known as a term that described the backend systems that were used by financial institutions, and that were not so focused on users. You should keep in mind that fintech is associated with the term ‘digital banking’, since it is one of the types of financial technologies that exist.
Digital banks are no longer a novelty at all, more and more customers are joining them for the advantages they offer. As technology is constantly evolving, new services and functions have been added to these banks, improving what digital banking is.
Traditional banks have realized that they have a big competitor and that they are a threat, so they have started offering their services online as well. However, they are still a somewhat old banking model, with digital banks being an alternative to traditional ones.
What is fintech?
Before we start, you must be wondering what the term fintech means and what it is about. As already mentioned, fintech is the combination of the words ‘finance’ and ‘technology’.
This is a term that is used to describe the changes that are occurring in new technology, with the main objective of improving the use of products, their delivery and automating financial services.
This technology helps entrepreneurs, business owners and consumers to manage their finances in a simpler way, together with a commercial process that is carried out digitally. This is a technology that was integrated to completely digitize banking. To access digital banking and online accounts you will need to have a computer or smart device.
Some advantages and disadvantages of digital banking
This technology helps entrepreneurs, business owners and consumers to manage their finances in a simpler way, together with a commercial process that is carried out digitally. This is a technology that was integrated to completely digitize banking. To access digital banking and online accounts you will need to have a computer or smart device.
Online banking allows the customer to carry out all their transactions and operations using a mobile phone, computer or tablet. This is very easy and fast way for banking. One of its great advantages is that operations can be carried out at any time of the day. Since it works 7 days a week and 24 hours a day, without having any restrictions.
With online accounts there is greater transparency. When contracting this type of online service. It is necessary that the contracts and conditions of use are displayed on the bank’s website, so that users can understand much better and the information is clearer.
On the other hand, the great danger of digital banking is that some do not have an official banking entity. That is why many scammers have emerged, taking advantage of the knowledge that customers have, to transfer them to other pages that are not the official ones of the bank itself.
In addition, in order to access these digital accounts, it is essential to have a smart or portable device, becoming a disadvantage for people who do not have these devices. In online banking there is no interaction with people, which is why many users have become reluctant to this type of banking, since they prefer personal treatment.
How to open a digital or online account?
Opening a digital account is a very easy process that does not take much time. This is something that you can do from home, since you will not need to go to a bank office. To open the account, you have available the bank’s website or its application. Here are some of the most common steps you have to do to create your digital account:
Access the online bank from the website or through the app.
Fill in the form they ask you for, where you must put your ID, email, mobile number, etc.
Verify your identity through a selfie, video call or transfer.
Sign the contract and confirm it by SMS.
Activate your account and the card you are going to associate, either with a purchase or at the ATM.
Sure, the specific procedure varies depending on the bank or financial institution. If you are not sure which digital bank to choose, we recommend reading this guide on banks with online accounts, which explains much more about the subject, with details of the banks with the highest reputation and best benefits.