A digital only bank provides banking facilities over the digital platform such as mobile, tablets, and the Internet. With the aim of heading towards digitalization & cashless economy, there are major steps that have been taken by the government. Digital only banks not only reduce the paperwork but also help in providing the banking facilities in an efficient manner. This is because people don’t have to wait in long queue for just depositing money and getting their checks cleared.
The biggest advantage of digital only bank is that it will help in growing the Banking, financial services and insurance (BFSI) industry as a whole. This means that it will add to the economy of our country in a significant way.
Below is the list of some of the best digital only banks that one should watch out for in 2019.
All Bank is based in Sandy, Utah. It is considered as the best online bank by many experts. The bank has all the features which a traditional bank offers. The bank has an APY of 2 percent for savings account holders and 0.10 percent APY for the checking account holders.
Discover Bank is based in Delaware. It offers a free checking account. You can even win cash back up to $3000. Customers of discover bank get access to more than 60,000 ATMs in the United States. It has highly competitive rates of savings account and is currently at 2.10 percent APY.
A great feature of opening an account in this bank is that you do not have to pay any maintenance fee or a minimum balance fee. However, there is a drawback too of having an account in this bank. You get charged if you withdraw for more than 6 times in a single month.
Salem Five Direct
This bank is an online division of Salem Five Cents Savings Bank. This bank is based in Massachusetts. It requires a minimum deposit of $100, but it has no minimum balance or monthly fee. The bank has a 2.30 percent APY on savings accounts.
The Radius Bank has its headquarters in Boston. The Radius Bank checking requires $100 to open an account. One doesn’t have to pay monthly fee and no minimum balance requirement. Some accounts of radius bank offer high interest rates, but in that case, you will need to have a minimum balance in order to take advantage of the high rates. The bank offers free ATM card too.
The bank does not charge you for using non network ATMs. The bank is part of a network of thousands of SUM branded ATMs. The bank also issues monthly refunds on fees charged by the non network ATM owners.
The E-Trade bank has its headquarters in Virginia. It is a hub for investors and traders. The monthly deposit is a miniscule amount of $1. However, for the customers who fail to keep a minimum balance of $1000 on an average, a fee of $10 is charged. The bank offers a 2.10 APY to savings account holders.
Capital One 360
Capital One 360 too has its headquarters in Virginia. It is a young bank as compared to other digital only banks. The bank offers interest rates according to your deposits. In order to earn a 2 percent APY, one would need to have a higher deposit in the bank account.
There are other banks too which are to be watched out in 2019. These include iGObanking, CIBC Bank USA, USAA, BankPurely.
Why Should People Shift Towards The Digital Banks?
The pace of increasing population is a major reason why people should shift toward the digital banks. This makes the banking system inefficient as to make it efficient the government is trying their level best. That is the core reason why people will see the push in the digital only bank in the coming 3 quarters of this year. By shifting towards the digital only bank people will have the banks in their pocket which will allow them to monitor their account in real time.
Lists of the services that are being provides by the digital only banks:
1. Digital only bank provides higher interest rate on deposits and fixed deposits as the cost of management is less as compare to physical banks
2. Future spending forecast on the basis of past spending
3. 24/7 availability
4. Automatic monthly, quarterly ,annually spending report
5. Getting loan approved over the internet with online documentation.
6. Only apply for new card or block existing card.
7. Use of artificial intelligence helps the customer to get there problem sorted with minimum time
The Bottom Line
The idea of heading towards the digital only bank will for sure help in boosting up an economy. Though, we will have to take a number of precautions to make it successful. The precautions include:
• Robust rules and regulations for digital only banks and payment wallet.
• Secured infrastructure so that the data would not get leaked. This will help banks to gain customer trust.
• Giving autonomy to banks for handling their bad debts.
• Updating of security patches on daily basis.
• Increase in point of sale machine as it will help them in making promoting the cashless economy.
• Focus on public private partnership model.
Therefore, for the success of digital only bank, they should also focus on the awareness part as they both go hand in hand. If the people are not aware of the services being offered, it would be very difficult for the digital bank to grow. That is the core reason why the entire digital bank spend huge amount of money on marketing and promotion by organizing campaigns for making better public relations.