How Do Online-Only Banks Operate Without Physical Branches?

Australians are increasingly entrusting banks that they cannot physically visit with their money. The idea of this may be intimidating if you are used to going into your local branch and talking to a teller. However, digital banks utilise innovative technologies that are working tirelessly to keep your money safe, accessible, and growing. Learning the inner mechanics of these banks will give you the confidence to take advantage of the unique services that they offer. You will learn how digital banks like ING Australia operate and how this can be beneficial to your wallet!

The Shift to Digital-First Banking

For decades, the traditional banking system was the brick and mortar branch. Customers were able to perform all banking functions at these locations. However, in the past few years, the way that consumers bank has shifted dramatically. People now want to be able to manage their money right from their smartphone during their daily commute or when they are at home.

Online banks were developed to meet this demand. They took the unique approach of eliminating the brick and mortar branch altogether. Instead, they focused solely on providing the consumer with the ability to manage their money online.

Cost Savings Infrastructure Translates to Savings

The infrastructure that traditional banks utilise to manage the brick and mortar branch is extremely expensive. Traditional banks have to pay for the upkeep and maintenance of the building. In addition to this, they also have to pay for the employees that manage the branch.

Online banks do not have to deal with any of these expenses. Since they do not have to pay the millions of dollars it takes to maintain these brick and mortar branches, they are able to offer these savings back to the consumer. This is why digital banks are able to offer significantly higher savings rates.

The Technology Stack Powering Your Money

A digital bank’s foundation is based on state-of-the-art cloud computing. Conventional banks typically operate outdated legacy systems that are costly and time-consuming to maintain. Digital banks, on the other hand, utilise cutting-edge cloud computing that allows them to grow rapidly and roll out security patches instantly.

Another area where digital banks excel is user interface. Digital banks invest heavily in user-friendly interfaces. Every element of the digital bank’s user interface is designed specifically for a smartphone. This allows for a highly responsive and intuitive user experience that can handle complex transactions with minimal taps and swipes.

Handling Customer Service and Cash Deposits

One of the primary concerns that a new user of a digital bank may have is how they will be able to access customer service or deposit cash. Digital banks, or online banks, have a solution for this. Digital banks provide top-notch digital customer service. In addition, digital banks have partnered with a number of companies that provide a solution for depositing cash. One of these companies is Australia Post. With Australia Post, you are able to deposit cash into your online bank account by visiting a nearby post office. This helps bridge the gap between physical money and digital banking.

Making the Right Banking Choice for You

Selecting a digital bank also offers unique benefits, which include higher savings rates and reduced fees on a daily basis. The mobile banking experience is also much more superior than what is offered in traditional banking apps. However, the drawback is that there is no opportunity for personal interaction if you want to discuss your financial issues with someone in person.

With the advancement in digital banking, it is being recognised that digital banks are not only highly secured but also profitable for consumers in Australia!