Digital banks have been around for more than a decade, and now they seem to outperform traditional banks in many areas. Millions of people prefer these modern banks because of their unique features: they allow you to access any banking products and services via your mobile device while being just as secure as the traditional options. In this article, we are going to analyze this phenomenon, explain why these digital banks are so popular, and give you several reliable options to consider.
About digital banks
The first digital banks appeared around 2008, but now they are pretty close to becoming more popular than traditional banking institutions. These companies provide banking services online: you don’t have to visit any office, everything from loans to insurance is just a couple taps away. Such banks are quite convenient while being very secure: financial regulators make sure they have to comply with the same strict requirements applied to any other bank. They are especially useful for people who travel often or work as freelancers.
These digital banks make everything much easier: you can open an account, verify it, and send some money abroad in just a couple minutes. They are usually much more flexible, too: you can manage all of your products or customize them right on the go. Moreover, they tend to have lower fees since they don’t have to charge extra to pay for offices and their employees. However, choosing a neobank may be rather difficult: each of them has its own set of features, products, and conditions. To help you out, we’ve arranged a list of the top 3 best digital banks with their pros and cons.
SoFi is a USA-based digital bank with a wide range of services. It has low fees, some investment and savings options, and products for business clients. However, the bank is available only to US citizens, so it’s not actually international.
Revolut is an international digital bank known for its low fees, cheap transfers, and nice savings plans; the service also allows UK citizens to invest in stocks. However, it is monetized through paid plans, so prepare to pay subscription fees.
Wise is another popular digital bank. It’s popular for especially low fees, cheap transfers, a convenient multi-currency wallet, and high security level. But there are no loans at all, and the array of products is rather limited.