Fintechs are becoming an increasingly popular way to manage your money. With a Fintech platform, you can take your money on the go and trust that the encrypted service will keep your money safe. However, banks can supply additional security and are steeped in tradition that cannot be ignored. What are the pros and cons of both services?
Benefits of a Traditional Bank
Probably the best reason you want to put your money in a traditional bank is that you feel it is more trustworthy. This is not completely unwarranted, as Fintechs have just emerged within the last decade. You like being able to go to a physical building to check on your finances. Because of this, it is easier to get customer service. This is helpful in urgent customer situations.
You could also argue that since mobile banking has become more commonplace, you don’t need a Fintech at all. You could see it as having the benefits of Fintech without as much of the risk.
Benefits of a Fintech Bank
On the other hand, one could say that Fintechs are just pioneering the newest form of banking. Fintech banks are better if mobile features are a must for you, which are increasingly popular with younger banking consumers. They also are far more aware of data risks—making them more conscious of data protection.
They also work better for the businessman who is making transactions with people in different countries. Banks can take a longer amount of time to transfer money long distances, but Fintechs can do it almost instantly. For these reasons, a global corporation could prefer to go a digital route.
Mix it Up!
As you can see, there are benefits to both forms of financial management. If you are having some reservations about Fintechs, but do not want to abandon your bank entirely, you might want to diversify! Having your money in two separate places can protect you if your accounts were to be hacked into.
You can use both and make your decision later. People who have decided to transition to a fully digital bank have done so gradually over time, and it has worked for them. But this doesn’t mean you cannot try them at the same time or even stick with a traditional bank. There will always be a market for them.
Hopefully, this has helped you decide what to do with your finances. Both have great benefits and iffy cons. Continue to research and you will figure out which one is right for you.
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