What is Digital Banking? List of Digital Banks in Philippines.

The development of technology 4.0 has brought many benefits to the development of industries. Digital banking is one of the excellent succession of this era. So what exactly is digital banking? What useful features does the development of digital banking come with? Which digital banks should you choose in Philippines? Let’s find out through the article below.

What is Digital Banking?

Digital Banking is a form of online banking expanded to meet the transaction needs of customers. All payment services, money transfers, etc. will be done online through smart devices connected to the internet.

Digital-Banking

When using digital banking, customers do not need any documents and do not need to go to the bank. You can make transactions at anytime, anywhere you want.

Features of Digital Bank

Digital banking helps customers experience convenient and flexible features. These include utility services for customers on digital banking applications such as:

  • Transfering money inside and outside the system quickly and easily.
  • Easily paying service bills, dining, shopping
  • Being able to have term deposit or demand deposit with interest rates and track your savings book online easily
  • Borrowing a loan when you have a quick financial need
  • Using the bank’s associated services such as investment, insurance, etc. right on the digital bank.

There are also a number of other convenient features and services on digital banking that customers can choose from.

Benefits of Digital Bank

When using Digital Banking, customers will receive many benefits, such as:

  • Making online transactions without going to the bank, which will save a lot of time, effort and travel costs for customers.
  • The speed of development, upgrading and expansion of digital banks is much more convenient with hight accuracy than that of traditional banks.
  • The security of digital banks is higher than that of traditional banks. Any transaction is done securely with an OTP code – this is the second layer of absolute security by digital banks with customers.

These are the great benefits when using the digital banking system that customers receive.

See also: What is a PIN code? The importance of ATM PIN

Compare Digital Banking and E-Banking

Similarities

Digital banking and e-banking are both aimed at online transactions through the internet.

Differences

E-banking: Towards account management, balance query, money transaction inside and outside the bank, bill payment, etc.

Digital banking: It is the digitization of traditional banking activities. Just using the digital banking system, customers can transfer money, deposit savings with term and demand, manage personal accounts, and borrow bank loans.

In general, digital banks are expanding and meeting the transaction needs of customers.

The importance of digital banking for life

In increasing modern life, the use of digital banking has helped people a lot.

  • Simple procedure, no card opening fee
  • Compared to traditional banking services, registering an account with a digital bank is more convenient. Customers only need to register directly on the website and confirm the information via email. This will help customers complete the procedure quickly and easily. Especially, you can save the most on card opening costs and other transaction costs.
  • Easy transaction and deposit.
  • When making transactions on the digital banking platform, customers will be free of charge. You can easily make a deposit at CDM machines at specific places belonging to the digital banking system. You can also easily make an transfer, which save you time.
  • All operations can be done online
  • All banking transactions, money transfers, payments, money deposit… are done online. Customers only need to own a phone connected to the network to easily make transactions. This will help customers optimize time and space. Because at any time, anywhere can make transactions. This is the strength of digital banking services to attract customers.

Digital-Banking

List of digital banks in Philippines

ING Philippines

Launched in 2018, ING Philippines was the first digital bank in the Philippines to be covered by the PDIC. With this insurance, along with its notably high interest rate, the neobank has secured many Filipino users since.

Up until now, ING continues to find new enrolments regularly. It is one of the few digital banks in the Philippines that provides free and real-time money transfer services. On top of that, ING also offers a physical card that users can use to withdraw money from various ATMs without charge.

Minimum initial deposit: None

Savings interest rate (p.a.): 2.5%

Maintaining balance to earn interest: None

CIMB Bank PH

A couple of years after CIMB’s launch in the country, the bank has already gained millions of enrollments. By partnering with GCash, the bank has provided one of the easiest ways to open a digital bank account in the Philippines.

Its convenience of use aside, CIMB also provides interest rates that are higher than that of traditional banks. No wonder so many Pinoys have turned towards this bank to grow their savings!

Minimum initial deposit: None

Savings interest rate (p.a.): 0.50-2.60%

Maintaining balance to earn interest: None

Also read: Mobile Banking Hacks: 6 Ways You Can Avoid Bank Transfer Fees

Tonik Digital Bank

A trailblazer in our local fintech industry, Tonik prides itself as the first neobank in Southeast Asia. Distinguishing itself from other known digital banks in the Philippines, such as ING and CIMB, Tonik has no affiliation with any physical banks anywhere in the world.

Being an exclusively digital bank, Tonik ensures minimal operating costs. Currently, it offers the highest interest rate for savings accounts in the country. Tonik also provides users with a Time Deposit product, where they can expect up to a 6% interest rate per annum.

Minimum initial deposit: None

Savings interest rate (p.a.): 1.00-4.50%

Maintaining balance to earn interest: None

Notes when using digital banking

The digital banking system is being widely promoted in the market today. However, when using digital banking, you need to pay attention to the following issues:

  • Carefully choose the appropriate digital bank, especially digital banks that are not long-term banking products.
  • Do not reveal your account or password to anyone.
  • After using a banking transaction, you need to log out of the device.

Conclusion

We have explained what digital banking is and the necessary information related to it. Hopefully, the above sharing will help customers to have a basic knowledge before using digital banking. Wish you have the best digital banking experience!

See also: What is bank teller? What do bank tellers do?

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