Eight Important Facts to Understand About Digital Banking
Contributed by Luigi Wewege At Caye International Bank
04 November, 2021
You've heard of digital banking before and may even be using it regularly. Even so, there may be aspects of this type of banking that you don't know yet. That's easy to change by discussing with a financial expert.
To help you get started, here are some basics about this form of banking and what it can do for you.
1. Digital Banking is More Than Online Banking
If you've considered digital banking to be another name for online banking, don't feel alone. Many people have that perception, and it's not incorrect. Digital banking does include options for online banking. It's just that this type of banking approach offers a little more than managing transactions in an online environment.
The other piece of the puzzle has to do with what's known as mobile banking. Along with the option to visit a bank's website and conduct transactions, a mobile element means the ability to download and install an app on your phone or tablet. That app allows you to manage a wide range of transactions without having to open a browser window. You'll find that offshore banks, as well as domestic ones, have apps to offer their clientele.
2. Broadening Your Options for Institutions
The nature of banking in the 21st century is different than it's been in the past. Well into the second half of the 20th century, the primary way to open and manage bank accounts was to visit a local branch physically. Over time, many banks began to offer a limited amount of support via phone banking. Finally, the advent of the internet led to many brick-and-mortar banks offering websites that made it possible to manage accounts, transfer funds, and even open accounts without having to visit a branch.
Today, it's possible to use a bank that has no physical location. Your banking can be done by accessing a website or using an app. While that's helpful with domestic accounts, it's especially beneficial if you want to open an offshore checking, savings, or time deposit account to enjoy higher interest rates and other perks. Even if the offshore bank does maintain physical branches in one or more countries, you may never have to set foot in one of them.
3. User-Friendly Interfaces
No one is interested in jumping through hoops to manage their accounts remotely. That's why banks of all types make sure their websites, as well as their apps, are easy to navigate. Even if the customer has never used an app before, the structure and the ease of navigation for well-designed apps will have the client feeling right at home in no time.
As people rely more on their phones for everything from shopping to ordering dinner, it's no surprise that they want to easily manage everything from deposits to transfers to making certain transactions have posted. It's all about simplicity, ease of use, and getting things done quickly.
4. Access Funds from Anywhere
It's nice to be able to handle tasks without having to step outside your door. Digital banking allows you to manage many needs from home or anywhere else you might be.
It's important to keep security in mind when using any digital app, particularly when banking. Reputable banks incorporate the latest security technology and measures. These apps let you manage your accounts safely from anywhere as long as you have connectivity.
5. No Waiting in Line
Lines are rarely fun. That's why so many people like the idea of managing tasks in an online setting. You can skip the line to buy tickets to different events, handle the grocery shopping, and stream your favorite TV shows and movies.
This convenience extends to managing your offshore bank accounts. There's no line to stand in, and you don't even need to handle many transactions during regular banking hours. With an app, you can initiate transactions any time of the day or night.
6. Easy Management of Your Offshore Accounts
The simplicity of using an app or a financial website to manage your offshore accounts is nothing to take lightly. You will find that checking on the status of your offshore savings account is just as easy as doing anything with your domestic one. Within seconds, you can view the balance, note any pending deposits, and even see how much interest has accrued in the most recently completed period.
If you need to transfer funds from your domestic checking account to the offshore counterpart, the process will only require a few steps. You may even be able to see your domestic bank processes the transaction quickly and that it's showing as pending in the offshore account within minutes.
7. Generating Account Histories is Simple
There was a time when securing the transaction history with a bank account meant contacting a local branch and requesting one. Above and beyond monthly statements, this type of history usually covered a year or more. If you weren't in the mood to go to a local branch, there was sometimes the option to make a phone call and have the history mailed to the address associated with your account.
Digital banking has ended the necessity of doing either action. By accessing your account using either the website or the app, you can quickly generate a report covering your selected period. Many banks make it easy to save the information in several formats, then allow you to download the report for electronic storage or printing. You'll have the data needed without waiting for the mail to arrive.
8. Transactions Sometimes Happen in Real-Time
Digital banking allows you to transfer funds between accounts you have with the same institution immediately. That means if you want to transfer some of the funds in your offshore checking account into a time deposit or an investment account that you have with the same international bank, you can handle it in mere minutes.
When this is the case, you'll immediately see the debit to your checking account appear in detail. At the same time, a quick check of the investment or time deposit balance shows that the transferred funds are already in place. If you need to move quickly to get the most benefits from your offshore accounts, this one perk makes digital banking a must.
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