Big banks vs digital banks
The UK banking industry is still run by the Big Four, including HSBC, Lloyds, Barclays and NatWest / Royal Bank of Scotland. However, UK digital banks are becoming very competitive in this space. New ways of delivering financial products and services as well as innovative technologies have earned them recognition in the industry.
While many traditional banks are also doing their best to offer services online, the neo and challenger banks are better able to capitalize on the latest technology. They are unaffected by clunky computer systems, long-standing traditions and historic ways of delivering services. As a result, they can easily meet the unique needs and requirements of their customers. Some of the new features and services provided by digital banks over their Main Street counterparts are:
- Splitting the invoice
- Expense reports
- No withdrawal and payment fees abroad
- Instant notifications
- The functionality to lock and unlock cards via apps
- 24/7 assistance service
- Future spending projections
- Spending limits for certain purchases
- In-app account creation and approval in minutes
- Specific backup pots
- Robust identity and verification processes
- Limits for problematic expenses like online gambling
Advantages and disadvantages of mobile / app-only banking
All types of banks have advantages and disadvantages, and apps-only banks are no different. The best part is that the pros outweigh the cons.
Benefits of app stores only
- No paperwork is required when opening a bank account
- You can manage it all from the palm of your hand
- A low exchange rate
- Reduced transaction fees
- Advanced money management tools and real-time expense notifications
- Lost or stolen cards can be frozen from the app
Disadvantages of app stores only
- Only a few app-based banks offer overdrafts or un-arranged loans
- Need a smartphone or tablet to use
- Dependent on mobile data or internet connection
- Difficult to deposit checks and cash
Is it time to move to an app-only store?
The rate at which app-based banks have dominated the banking world is a clear indication of people’s enthusiasm for the potential of making finance easier and more accessible. However, this is still a relatively new concept and requires some consideration before making the change in its entirety.
Personally, I like to manage my bank on app only, in collaboration with my traditional bank, thus ensuring that I can take advantage of all the features offered such as favorable foreign transactions and advanced money management tools. , but my traditional bank is close at hand. should I deposit cash, pay by check, or access some of the advanced banking facilities like overdrafts and loans that are rarely available with an online bank account.
While there have been several significant advancements with app-based banking, there isn’t yet an online banking that offers all the useful features you might need throughout your life.