7 Criteria for choosing the right digital bank

The evolution of digitalization has brought about a new era in the world and the banking system isn’t left out in the new era. Digital banks are evolving every day thereby revolutionizing the way we do everyday banking.  

Compared to traditional banks, digital banks offer more services, opportunities, and flexibility to customers. The incorporation of technology in the banking system has been most beneficial to us as we can access all important services such as depositing, withdrawing, sending, and even applying for loan services with just a click on our mobile devices. 

Another advantage of digital banks is that there are so many of them, giving customers many options. However, this can be a bit confusing at times. But not to worry, there are certain criteria to consider to choose the one that suits you most. I’ll be talking about these criteria in this article.

What is Digital Banking?

Let’s explain what digital banking is first: Digital banking is the incorporation of technology and banking. It’s the process of carrying out transactions such as sending or receiving money, withdrawing money, applying for loans, and many more via a laptop, tablet, or phone.

With digital banking, the old system of paperwork like cheques, demand drafts, pay-in-slip, and more has reduced drastically.

Recommended: Top digital banks in Nigeria

How to choose the right digital bank: 7 Considerations

Given the sheer number of digital banks, you have to make sure you are making the right choice. So here are the criteria you should consider to choose the right one.

1. The credibility of the bank

This is undeniably the first factor you should put into consideration when choosing a digital bank. There is a tremendous increase in digital banking platforms as there are lots of consumers of the service. 

And cybercriminals are working on various schemes to deceive naive and unsuspecting people. One of the ways to confirm the credibility of a digital bank is to confirm if they are registered and licensed by the Central Bank. Another way is to check out their mobile app reviews on Play Store.

2. Offer all digital services

Another factor is that you have to ensure that the bank offers the options to carry out, through the website and the mobile app, any form of transaction you want to perform.

Ranging from sending or withdrawing money to applying for loans to creating mobile wallets, the digital banking platform must enable all these.

Nowadays, even some banks offer the option of opening an account within the comfort of your home.

3. Accessible at all time

The purpose of the advancement in technology is to create ease for humans in every aspect and that’s what digital banking should be, the platform that makes the banking process convenient for everyone.

The best digital banking platform must be easily accessed all 24 hours and must operate all 7 days a week no matter the current situation of things. You should know about the service availability of any digital bank you want to choose before choosing. 

4. Account and Service Options

The account and service options in every digital bank differ.  Ensure that the bank offers the account options you need(either a checking or savings account) and the service options you need(either a personal or business loan option) before choosing or if you need to choose a particular account to have access to some banking benefits.

Additional services such as overdraft protection, treasury or investment protection, and certificates of deposit are also offered by digital banks, check out the banks to know which offers the one suitable for you.

5. Charges on digital services

Before choosing a digital bank, make sure you know the charges rate and interest rates. Some digital banks charge less or simply don’t charge on transactions while some charge more on transactions.

So you must know the banks that offer the options suitable for you. For instance, some accounts don’t charge for transfer but you can only save a limited amount in it and there are some that charge but the amount you can save is unlimited. Therefore choose the one suitable for your needs and pocket.

6. Choice of payment mode

Digital banks should offer options for various payment modes. You must ensure that any digital banking you choose offers you the option to choose any payment method you prefer or provides you with a mobile wallet.

The debit card is gradually losing its usefulness, so you must make sure that the bank you choose offers you the option to perform transactions through other online gateway using PSE or using a QR code.

7. Security 

While you should do your part by using a strong password for your account, the bank must also do its part by providing the resources you need to protect your information on the platform.

One of the forms of security that can be provided by the bank is notification. It’s a norm for every bank to send notifications of payment or withdrawal to customers. As it will let you know if the transaction you perform has been made, it will also notify you when your account is being tampered with or an unknown payment is being made from your account.

Though we don’t get to see this every month, it does happen and you must ensure the digital bank you want to choose will send you a notification anytime you perform a transaction to prevent this.

The form used for most notifications is SMS, but some banks do use the email method. So if you see a notification about a payment or withdrawal you didn’t make, you should complain to your bank to rectify the situation.

Also, if you didn’t get the notification of the payment or withdrawal you make, contact your bank about it.

Bottom line

Digital banks are like the upgraded version of our traditional banks as they offer more banking benefits. However, you must be careful in your choice so as not to wish that you had better stay with the conventional banks. I hope these seven criteria above will guide you in choosing the best suitable digital banking platform for you.