Online and Mobile Banking Tips for Beginners

The digital age is changing how we do banking. Nowadays, consumers want to carry their bank in their pocket, and that’s exactly what digital banking promises. All you need is an electronic device with an internet connection, and you can do everything from paying bills to wire transfers from anywhere and at any time.

How Does Digital Banking Work?

Digital banks offer partial or complete banking services through a website and a mobile app. These online platforms may eliminate the need for you to step into a brick-and-mortar branch.

Some digital banks have a physical counterpart. Most traditional banks extend their services to online platforms. However, some banks are digital-only or neo banks, which means they don’t have physical branches.

Think about your personal needs and preferences to choose the right digital bank. Here are some tips to get you started:

1. Easy Account Opening

While some banks require you to visit a branch, others offer online bank account opening with just a few taps on the mobile app. It’s worthwhile to choose a digital bank that cares about your convenience from the get-go.

2. Higher Interest Rates

Some digital banks, neo banks, in particular, offer high-interest rates on savings because of competition and price pressure. They also have reduced overhead costs because they lack physical branches and can provide better rates than traditional banks. Try comparing the interest rates on savings of different digital banks.

3. Minimum Requirements

If you struggle to maintain the minimum balance requirements in your local bank, digital banks can solve this problem. Choose a digital bank with a low minimum deposit and balance requirements. Some digital banks offer zero balance savings accounts to their customers. 

4. International Compatibility

Make sure your digital bank supports you on your international travels. Look for low forex markup, cost or loading, and other charges. The bank should also have an extensive ATM network and help you locate an ATM near you easily.

5. Features

These days, digital banking apps come with a variety of innovative features that traditional banks don’t typically have. Examples include savings tools, personalized financial advice, budgeting tools, etc. Try choosing a feature-rich app that makes managing your finances an easier job.

6. Investment Options

Some digital banking apps and websites offer investment options to provide you with a hybrid platform. Examples may include mutual funds, ETFs, stocks, etc. This way, most of your financial goals are combined and managed through one app. It’s also easier to invest your savings when you’re managing both tasks through one platform.

7. Automation

If you struggle to remember things like paying your bills on time, try going for a digital bank that can automate your financial tasks—for instance, automatic bill payments, auto-saving, auto-investment, etc.

8. Customer Service

Good customer service becomes an even greater priority for digital banks because there’s little to no physical interaction. Make sure to read reviews and observe how the bank responds to you on email, phone, social media, etc., before you make the choice.

9. Safety

Digital transactions through an app are safer than carrying cash or cards around. However, even though digital banks have cyber security measures in place, you should be mindful of your account’s security. Never share your account details, and beware of calls and emails from scammers.

10. User Experience  

As with any app or website, user-friendliness should be one of your top concerns. A digital bank may have attractive rates, but it may not be worth it if the website freezes, the app hangs, or you have difficulty navigating the platform.

Online and mobile banking help you hold the reins of your finances. If you’re still making frequent trips to your local bank, try giving digital banking a chance and take advantage of the benefits.