A lot of our community members ask us how Bettr will differ from the mobile banking or digital banking their current bank offers. So, we thought we’d put together a blog post that explains the differences between mobile banking, digital banking and virtual banking.
Most traditional banks offer a banking app that you can download to your phone. Once you’ve gone into your closest bank branch to link the mobile banking app to your bank account, you can use it to complete basic transactions – like EFTing money, checking your balance and buying airtime or electricity. This is mobile banking, or cellphone banking.
Mobile banking has been available in South Africa since 2011, but in the last 7 years, cellphone banking has not evolved much in terms of its capabilities. Cellphone banking has given us a taste of how banking can fit into our on-the-go lifestyles, but there are limitations which mean branch visits, queues and paperwork are still a reality.
Digital Banking, online banking or internet banking has been around for more than two decades now. The earliest form of internet banking was logging into your bank account through a bank’s website to complete transactions. Before there were mobile banking apps on our phones, this was the only way to access a bank account digitally. The game has changed significantly since then.
Digital Banking is now a term used to describe any banking activities that are completed using a digital device – whether it’s a desktop computer or a mobile banking app. People save online using saving apps, pay for their coffee by scanning a code, and companies pay their staff with app internet banking. These are all forms of digital banking.
Bettr is a virtual bank – the entire bank exists online. There are no branches and there is no paperwork to sign. To open a bank account, you will need to download the mobile banking app. By submitting your details and completing the security checks, you are assigned your virtual account. Your card, linked to your virtual account is delivered to your door, and you’re ready to start virtual banking.
There are many benefits to virtual banking. For starters, many of the costs that a traditional bank have, are eliminated. There are no buildings that need to be rented, maintained and manned. Many of the processes – from opening an account to freezing a lost card – can be done through the app without support. These savings mean the customer saves as we won’t need account fees to cover these expenses. Virtual banking also gives account holders control of their money anytime, anywhere.
We believe virtual banking is the future of how we work, play and save our money. That’s why we’re building a virtual bank. Our community is helping us every step of the way, sharing what they think a future bank should offer. If you want to have your say, sign up to our community.