Generation X members and millennials will presumably remember how the traditional banking system was riddled in limitations, time-consuming, and extreme transaction fees. Even worse, you could never be certain of the estimated time when you make a transfer. Creating an account or reaching your transaction history was highly challenging. That’s why most people owned only one account linked to a local bank back then. It was a system at a snail’s pace and destructive to the entire economy, from small businesses to mega-companies. Then something changed the whole game. Internet penetration affected traditional banking and evolved into comprehensive digital banking solutions.
Today, thanks to the continuously changing customer portfolio and the emergence of new technologies, we have utilised online banking at other levels. Instead of waiting in queues and presenting a bunch of documents to transfer some money or open a simple account, digital banking opens the door to a new era where users can have complete control of their cash flow while having full access to all linked services through one single account.
Online banking comes in a myriad of types. Having the basic knowledge of online banking types and how they differ can save you time moderately when you do not know which one to choose. In this part of our article, we have listed the most popular types of digital banking solutions worldwide below:
The name refers to a digital bank with no brick-and-mortar presence and provides its users access to all services by a mobile app. Although most Neobanks do not own an operating licence from a regulatory authority, they may partner with an already existing bank to operate bank-licensed operations. Please note that to create an account on a neobank means an account at the partner bank. Since they do not have a broader scale as licensed banks, neobank services may be limited compared to them.
- New Bank
As completely regulated Neobanks, you can find a rich selection of banking services in this type of digital banking. These establishments operate only online. So in the case of a conflict, you need to get in touch with customer support.
- Challenger Bank
As you may understand from the name, the term “Challenger” indicates a recently launched bank aiming to challenge traditional banking institutions that move inefficiently and are not user-oriented. In contrast to putting one foot in front of the other, challenger banks can be highly competitive, affordable and speedy. Focusing on the user segments can increase the level of services underserved by the other financial institutions.
Maybe Nonbanks can be an excellent example to point out the borders of what is digital banking. These non-banking structures provide financial services such as loans, insurances, or mortgages. On the other hand, they may not accept deposits or offer a savings account, yet they supply straightforward benefits compared to others on the list. Please do a deep search for the services before creating one.
Our state-of-the-art digital wallet, Jeton Wallet, presents a multitude of advantages for both individuals and small business owners. You will have tailor-made solutions for your company, while you can also use more than 50 fiat currencies to hold an account in local currency.
Join Jeton Wallet today and have the exceptional opportunity to step forward for your online business. Create your Jeton account smoothly, have full access to your cash flow and send money around the globe in minutes with the lowest transaction fees. Please remember that together, we are more potent than ever.