Digital banking is just one part of the overall picture of the transition to online banking. The switch from traditional to internet banking has been slow but continues to gain momentum as development further progresses. This means that different parts of your banking experience can now be accessed on the internet including your personal banking accounts, online direct debits, online loans, and the ability to make online bill payments.
All these services can be performed through your computer, laptop, or mobile phone. However, this change in online banking also transformed the way people manage their finances. Now, the internet provides many people with a much better and more convenient means of managing their money. There are many options out there when it comes to digital banking. Before you pick a digital bank, always make sure to do your research.
You can start by comparing your options. Sites like www.topmobilebanks.com/ allow you to easily compare some of the most popular banks. If you aren’t familiar with mobile banking, here are some of the things you should know about mobile banking.
Reduces The Chances Of Encountering Counterfeit Bills
The royal mint estimates there to be about 30 to 40 million counterfeit bills in circulation today. Many people come across counterfeit bills when doing an everyday transaction and don’t even realize it. Using counterfeit notes affects everyone around you and can seriously damage the economy. One reason online banks and their users don’t have to stress about counterfeit money is because all their transactions are digital.
Helps Reduce Crime
Many criminals use counterfeit bills and fraud to cover their tracks and clean their money. Many people are unaware of it but fraud costs the average individual around £100 per year. If you stop using banknotes and move to digital banking, you can decrease fraud in your area since most criminals need to have a large sum of cash available to them in order to do what they want. Using digital banks will also make it easier to track criminals since large sums of money being distributed would be more noticeable online.
Adds Financial Security
Losing your wallet can be a huge inconvenience and headache, the only thing worse than losing your wallet is losing a wallet full of cash. If you’ve ever lost money, then I’m sure you are familiar with the horrible feeling that comes with it. One of the biggest disadvantages of carrying banknotes is that if you ever happen to misplace them, drop them on the street, or get robbed, then you know that the money you had at the time is gone for good. Digital banking has changed the consequences of all of the horrible circumstances previously mentioned. Since you won’t be carrying cash and only have your card, your money can be kept safe in your account. Most bank cards require you to have a secret pin in order to use them. If, for some reason, someone manages to use your card, your bank will be able to cancel your card, issue a new one, and refund your money without a problem.
Benefits People Living In The Countryside
If you have ever lived in the countryside, you should know that most of the population in that area won’t have a bank close to them. In order to get to a bank or use any banking services, one would have to find the nearest town with a bank in it. If you’re lucky, you’ll be able to find one within an hour’s drive but a lot of people end up having to drive multiple hours just to be able to use their banking services. UK Digital banks have made banking for the rural population a dream come true. If you live in the countryside and choose a digital bank, you will have the peace of mind of knowing you no longer have to travel to access your account. This is especially helpful in times of emergencies when you need fast access to your money.
Makes Banking Services Easier
Most people have had a traditional bank account and are aware that in order to do any transactions or use any of the bank’s services, you would first have to drive to the bank, stand in line, and wait for your turn. Some banks only offer their services if you set an appointment and that would mean having to wait to get what you need. Digital banks have changed banking by allowing you to do all banking services online. Seeing your bank statements, making transfers, paying bills, and cashing checks can now all be done from your phone with a simple touch of a button.
Makes Tracking Expenses Easier
Before digital banking, tracking your expenses meant going over all your bills and statements one by one until you finished. This is a very time-consuming task and could be a huge headache. That is especially true if you happened to make a mistake or overlook something. If these were to happen, you would then have to start all over again until you got it right. Digital banks have changed this by allowing you to see everything online. Most banks have a search option that allows you to find any expense in the blink of an eye. Most of these digital banks also have additional features that help you with tracking expenses and help do the math for you. This would mean less time and headaches for you.
Helps You Pay Bills On Time
Have you ever been in a situation where you feel like you’re forgetting something but you’re not sure what? You keep thinking and thinking without coming to a conclusion. Later on, you realize that you forgot to pay your bill and when you do, it’s too late. You’ve already incurred late payment fees which, in itself, is such a huge burden. If this has happened to you, then mobile banking is definitely for you.
Online banks offer great tools that help you keep track of your bills. These tools will send out alarms and reminders to ensure that you don’t forget to pay your bills ever again. Digital banks will also help you keep a record of the bills paid to avoid multiple charges and to have proof of payment just in case there is an error in your provider’s system.
Allows You To Send And Receive Money Instantly
If you’ve ever had to wire money then you are probably aware of the problems that can come with that. When you wire money, you have to make sure that every detail is correct. If not, the person you are sending the money to won’t be able to claim their money. Making this mistake can cost a lot of time and can be a huge headache to get resolved. Online banks help reduce the probability of user errors that come with sending and receiving money. Online banks usually have a list of the contacts you provided that allows you to send money with a click of a button. This makes sending and receiving money a lot safer and faster.
Is Eco Friendly
The UK is known to use about 12.5 million tons of paper annually. This means every family in the UK is using 6 trees worth of paper every year. This can be devastating to our environment in the long run. Recycling a ton of paper can help conserve enough energy to power a 3-bedroom home for a year.
The banking sector is responsible for sending out about 4.2 billion paper documents every year. With the global climate problems we are having, many businesses are making the environmentally conscious choice of going green. Digital banks are a good example of some of these businesses. They don’t have physical locations which means they minimize the number of resources they use. They also offer paperless statements and everything is digital so you won’t be wasting paper and contributing to the global problem.
Is Available 24 Hours
One of the main disadvantages of traditional banks is that they are normally only open during certain business hours. Banks usually open at around mid-morning and close around 5 o’clock. Unfortunately, this also means that most banks are closed on weekends. One of the reasons this is a problem is because financial emergencies can happen at any time. Online banks are the solution to this problem because they are accessible 24/7. These banks don’t have physical locations so they don’t need as many employees to provide the same services as traditional banks, this allows for banks to hire fewer people to do the same amount of work and allow them to have services available around the clock.
Can Make Saving Money Easier
Most online banks have programs that are dedicated to helping you save money and benefit from interests on that money. These programs work by helping you keep track of expenses, help you see where you can cut expenses, and help you create a savings goal. Once you have set your savings goal, the program will automatically transfer a set amount of money every week into a savings account. Doing this will help you save money without thinking about it. The money you have saved in this account will then sit and compile interest making you more money in return. If you struggle with making a budget and saving money, then digital banking can be a great tool for you.
Web-based services have replaced the traditional way of banking. It is now slowly becoming the primary method of transferring funds between clients, friends, and colleagues. They allow individuals and businesses to conduct transactions without having to physically visit a bank. By using internet-based services, you are able to transfer money directly from your account into the recipient’s account without having to leave your home. This service enables your friends and family to save time, money, and effort. There are many advantages associated with using digital banking including saving money, being more environmentally friendly, and having banking services available at the touch of a button.