The world has gone digital, so it should come as no surprise that the world of banking has joined it. Large banks and small banks are offering more and more digital products to their clients, but even more interestingly has been the birth of completely digital banking institutions. These companies have added another dimension to the banking world and will likely change the way that future generations interact with the industry.
But how much do your clients really understand about digital banks and digital bank products? More importantly, does your staff know the difference, and do you? Here is a basic rundown of the two concepts that might help shine a light for you and your team.
A popular example of a digital bank is Ally. Ally is an online-only bank with no physical locations. Since so many people depend on the debit and credit functions of banking, a digital bank can meet many of their client’s needs, however, it leaves no options for depositing cash and offers no face-to-face customer service. Additionally, many online banks don’t have their own ATM’s which can make getting access to cash difficult, though some have fee reimbursement available allowing you to use another bank’s ATM. For many banking clients, digital banking is still a little too far out an option to consider, especially as traditional banks often provide all of the same conveniences while still offering access to easy cash depositing and withdrawal and in-person customer service.
While most of your clientele will be unfamiliar with the concept of digital banks, they’ll all be acquainted with digital banking products because they likely take advantage of them in your business. This includes any of the online or mobile services. Some popular examples are your website which allows clients to access their account information, transfer funds between accounts, and even make changes to their account details. Many banks also offer mobile applications which allow their clients to execute those same tasks and more but from the comfort of their own smartphones. Digital banking products give traditional banks the competitive edge against the newer digital banks on the market. They provide clients with convenience and flexibility while still offering the dependability of a traditional bank with all it’s branch locations and personalized customer service.
As the banking landscape changes and digital banks become more and more common, it’s up to traditional banks to fight for a competitive edge by venturing into new territory. The more digital products and convenience you can offer to your clients, the less likely they’ll be swayed to leave for the greener pastures of some online-only institutions. Things change quickly in the online world and it is up to us to keep our eyes on the future and make calculated and strategic digital advancements to ensure that we’re providing our clients with the best service on the market.
.png){kind=small}
