Bank has been part of our daily lives, especially when you are doing business, it has an enormous impact on you and your company. And choosing the right bank for your business is very important. When I say choosing, not only on which bank to go to but also whether it will be a traditional bank or a digital bank. 

But wait, what’s the difference between a traditional bank and a digital bank? Traditional banks are brick and mortar banks. A bank that you need to go to physically to do your transactions. While the digital banks are the banks that don’t require your physical presence. You can do the banking transaction anytime and anywhere you are comfortable.

So what is the best choice between the two? 

A traditional bank is a financial institution that operates as a brick and mortar/physical location that may have different branches located in the country, so it will be easier for you to withdraw and deposit your money. They also require you to be physically present when opening an account. You do all your transactions in the bank, while some banks offer limited digital banking services, but you still need to go to the bank if there are issues you may have encountered. 

Traditional banks offer a full suite of financial services, from checking accounts to credit and debit cards, loans, credit reports, etc. However, all of this comes at a cost, and customers can expect to pay a premium for the range of services.

While the digital bank is not just an online bank account. It is a banking company which works completely online. All your account management and banking transactions are done completely online, either in-browser or via the digital bank’s app. There are no real world branches, no physical presence, and no physical banking location. Your digital bank starts online, and stays online. 

Which one do you prefer? Let me tell you the advantages and disadvantages of both.

Traditional bank 

Pros :

1. Withdrawal and deposits
2. Physical branches
3. Saving accounts

Cons :

1. Open an account remotely
2. With account fees
3. With minimum balance requirements
4. Secure role-based logins for multiple team members

Digital bank

Pros :

1. Open an account remotely
2. No account fees & minimum balance
3. Multiple free checking accounts
4. Physical and virtual cards
5. Direct integrations with accounting software like QuickBooks Online and Xero
6. Advanced accounts payable features
7. Mobile banking

Cons :

1. Cash deposits
2. Physical branches

Now that we have compared the two and honestly speaking, I would prefer digital banking. Because why? It’s quick and easy to open an online bank account. 24/7 banking, with more self-service functionality, Of course, Enjoy lower costs with Enhanced security.

What about you? Which one do you prefer? If you need any consultation, please message us at info@uniprohk.com and we will be very happy to help!