Digital banks have made the banks thrive for customer satisfaction and have given the monopolistic banks a tough run. So let us compare the two based on different criteria.
Services & Products
Banking Services-Digital banks offer different products to customers, from opening an account to transferring funds. But, often, bigger loans and larger credit facilities which require a lot of documentation compel the customers to visit the bank. On the other hand, normal banks offer every banking service ranging from cash deposit and withdrawal to sanction of different loans.
Access to Cash Transactions- Unlike normal banks, digital banks provide limited access to physical cash as they don't provide cash withdrawal facilities and often seek collaboration with other parties.
Debit Cards- Normal banks only offer physical debit cards in contrast to digital banks, which offer both physical and virtual debit cards. The virtual card stored on the digital bank account can be used for various online transactions.
Besides that, both digital and normal banks provide money transfers, credit facilities, and savings accounts facilities. However, the aforesaid services take much less time via the digital banks as it is accessible by the customer at their fingertips.
Digital banks usually have lower fees as compared to normal banks. This is because digital banks do not have physical offices like normal banks; hence they don't incur any indirect administrative costs like rent, electricity, staff welfare, etc. Thus, for example, opening and maintaining an account is free with the digital bank Revolut. Even the top-up of the Revolut card with another bank card is free.
Both the digital and traditional banks have 24/7 chat support to address the complaints of the customers. In addition, 24/7 email support is also available to digital bank customers, though only some traditional banks offer such facilities.
Thus, the digital banks address all the issues in real-time, and even critical issues take only a few hours to be resolved. On the other hand, as far as traditional banks are concerned, some complex issues like wrongful debit or unauthorized transactions require the customers to visit the branch the next day to resolve.