From electric cars to virtual reality headsets, technology has managed to have an impact on nearly every part of our day-to-day lives, including the way we bank. And although by now it may feel as if digital banking has been around forever, it’s technically only a relatively new concept for most of us. So what are the key things that you should know about digital banking and is it right for you?
Below we answer some of the most asked questions about digital vs traditional banking including the pros and cons of each and how to know what type of bank is right for you.
What is the difference between digital and traditional banking?
Traditional banking is the type of banking that nearly the whole population would be familiar with. It refers to a bank that has a physical presence, this means that they have brick-and-mortar branches that you can visit, in-person customer service, and branded ATMs. It’s pretty likely that they will also have some online services. Some traditional banks in Ireland include the Bank of Ireland, AIB, and Permanent TSB.
Digital banking is a relatively new concept and refers to a form of banking that is entirely digital and provides online and mobile banking services. This includes an online account that you can check in on and control through your computer or mobile. This type of banking allows people to control their finances and access their accounts from pretty much anywhere with a secure Wi-Fi network. If you are interested in a digital account, find out more about what Money Jar can offer here.
What are the pros and cons of each type of bank?
Before knowing what the right type of bank is for you, there are a few advantages and disadvantages to consider for each.
The pros of traditional banking:
- Face-to-face interaction
- Physical locations
- Cash and cheque deposits
The cons of traditional banking:
- Higher fees
- Up-to-date online services are not guaranteed with every bank
- Facilities operate only during business hours
The pros of digital banking:
- Ease of access
- Lower fees
- Available to those who might not have a traditional brick-and-mortar branch near them
The cons of digital banking:
- No face-to-face interaction
- Usually, no cash or cheque deposit (at Money Jar, we offer a cash lodgement service through Payzone across the country – find out more here)
- Can take some time to get used to!
Are digital banks safe?
Because traditional banks have been around for as long as we can remember, it’s normal to question the safety and security of digital banks. However, it’s important to know that digital banks are just as safe as traditional banks.
If you are considering switching to digital banking, try taking the below steps to ensure you feel completely comfortable from the start.
- Regularly change your password or access pin
- Use multifactor authentication to access your account
- Set up alerts for transactions or withdrawals
- Familiarize yourself with your chosen banks services and technologies
At Money Jar, your account is protected using the most secure technology. We never store your login details and all of your data is encrypted at the database level using TLS 256-bit encryption. We enforce a passcode for app access and biometric authentication for added security. And in the unlikely event you lose your card you can freeze your account instantly using the app. Find out more here.
What type of bank is right for me?
The type of bank that might be right for you will totally depend on what you are looking for from your chosen bank. If you are interested in face-to-face interaction and the ability to physically visit a bank branch, then perhaps traditional banking suits you. However, if you prefer the idea of being able to manage your money from your phone or computer or simply don’t have a local bank branch near you, consider looking into a digital bank that fits your needs.
Interested in making the switch to digital banking? Money Jar is a simple and straightforward approach to a digital account. We make things like setting up a bank account a lot more simple with just a few simple steps.
- Download the Money Jar app
- Register your personal details
- Verify your identity using a standard form of identification
We provide lots of ways to help you stay on top of your spending and make the process of setting up an account easy. Find out more about how we can help you have the freedom to be better with money and anything else you might want to know about setting up a digital account with Money Jar here.
We recognize the importance of an Irish-backed business for safeguarding your money. Your money is always secure and held in Tier 1 Irish bank. Your Money Jar Prepaid Mastercard is issued by PFS Card Services (Ireland) Limited pursuant to a license from Mastercard International Incorporated.
