What is a digital bank that Gen Z likes to use instead of going to the bank to
make transactions. Currently, there are many digital banks present,
but only about 5 digital banks are the ones I feel most satisfied and
encourage you to use.
To know what those 5 banks are, please read the article below.
What is digital banking?
Digital Banking is a banking application running on mobile devices that can
meet most users' needs. Such as opening an online account, transferring money,
receiving money, depositing savings, withdrawing money at ATMs can all be done
right on the digital bank without having to go to the bank.
Digital banking is gradually changing the business model of many banks. In the
past, banks took products and services as the focus of development, when
applying digital technology. Banks must focus on customers, customer
experience is the most important thing of a digital bank.
Why does Gen Z prefer to use digital banking?
The generation that uses digital banking the most is Gen Z, ie the generation
born between 1995 and 2012 (some say 1997-2015). Here are the reasons why
digital banking attracts modern young people:
#1. Maximum cost savings
Don't think that young people spend money wastefully, they know how to spend
money when paying attention to every small fee of the bank. With digital
banks, they are free of a lot of fees such as money transfer fees inside and
outside the system, account management fees.
Instead of having to pay the balance fluctuation fee month via
SMS, Gen Z chose to change the balance via a digital banking application.
Because the phones of this generation always have a 4G or Wifi connection.
Some digital banks even waive cash withdrawal fees at any ATM in US, such
as digital bank.
#2. Stay at home and do everything
All the transactions that a young person needs are almost met by a digital
bank.
If you need a bank account, just download the banking app from CH Play or App
Store. Then register an account and authenticate your identity using eKYC
technology integrated inside the digital banking app, and you will have an
account that can be used immediately.
If they need to save money, Gen Z only needs to choose to open a savings
account, then transfer money to that account. Select the term and the interest
rate will be displayed in full. Click “Agree” and the deposit is done.
And yet, if Gen Z needs a physical ATM card, just agree to issue the card, the
physical card will be delivered to the customer's house in 3-5 working days.
Others choose to open virtual cards instead of physical as usual, because they
only use online.
#3. Pay all consumer bills
Electricity, water, wifi, cable, postpaid subscribers, phone card top-ups...
all of which customers can use digital banking to pay. Some digital banking
applications even actively save invoices and when the payment period is due,
they will actively notify users.
With just a phone, digital bank and internet connection, young Gen Z people
have done everything to solve their financial needs.
Compare Internet Banking, Mobile Banking and Digital Banking.
There are some terms related to digital banking that I want to clarify with
you a bit. Currently, in the banking and finance industry for online
transactions, there are 3 forms: Internet Banking, Mobile Banking and Digital
Banking. I will analyze each product one by one.
#1. Internet Banking (Electronic Banking)
Internet Banking is the first form of bringing online transactions closer to
people. Users only need to have an electronic device such as a laptop, phone,
tablet and an internet connection. They open a browser and enter the bank's
URL, log in to their account and make a money transfer. At the same time can
use other simple services on it.
The key of Internet Banking is to use it through the browser on the device
such as Chrome, Safari, Internet Explorer ...
Currently, this form of transaction is still operating normally, the user
experience is much better than before. However, business users probably use
more than personal users.
#2. Mobile Banking (Mobile Banking)
Since mobile phones became popular in 2010, banks have launched mobile
applications one by one, making login and start-up operations quicker.
However, Mobile Banking is like wrapping all the features on the web into an
app for users to download. Even in the past, banks also provided different
Mobile Banking and Internet Banking login accounts, causing many difficulties
for users.
In order to use Mobile Banking, users must go to the bank to register an
account, personal information and identity before they can use it.
#3. Digital Banking (Digital Banking)
Later on, banks began to realize the explosion of mobile devices and the
ecosystem around it. Should gradually switch from Mobile Banking to Digital
Banking. It can be said that Digital Banking is an upgraded version of the
previous Mobile Banking.
With Digital Banking, customers can do everything with it as mentioned above.
However, there are two more forms of Digital Banking.
- Digital bank issued by traditional banks: Is the official application of the bank, utilizing 100% of the bank's own resources to develop.
- Third-party digital banks combined with traditional banks: Some fintech technology partners have available technology and marketing resources. Then, these fintechs combine with a certain bank to take advantage of that financial platform to make a digital banking application.
Notes on using digital banking
- Actively protect personal information, absolutely do not give OTP codes to anyone, including bank employees.
- Do not open too many digital banks at the same time because it will make you easy to forget your password and you should not open too many for anything. Just 1 digital bank is enough.
- Do not lend your phone to others without having advanced security levels installed for digital banking apps or any other financial apps.
- Some foreign organizations are impersonating digital banks. Before opening a digital bank account that is not listed above, learn carefully about the origin of that application. Avoid losing money.
Thousands of bankers will lose their jobs because of digital banking
The growth of digital banking has raised concerns about the employment
situation at banks. Banking is one of the industries with a large number of
employees to meet the service needs of customers.
However, since the advent of digital banking, the basic services of digital
banking applications have replaced bankers. In the future, certainly, with the
development of technology, digital banks will do more things than that. For
example, some banks are moving to integrate Trusting Social credit scoring
technology to provide unsecured loans to customers.
The reduction in the number of banking personnel is certain to happen in the
future. Even the near future.
Only 5% of digital banks in the world are profitable
Many people wonder why digital banking offers so many free services. Is it
profitable for their digital bank to take risks for such media campaigns?
Digital banks in the world are also struggling to attract users to use their
platforms. There are currently 249 digital banks operating in the world, only
13 have reached the breakeven point. And 10 of them come from countries in
Asia Pacific.
Related: gen z banking apps,best banks for gen z,chase digital banking attitudes study,gen z banking trends,gen z fintech,generation z the future of banking,millennials and banking statistics,banking and payments for gen z