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What are digital banks? is a common question in recent years, since there has been a growing demand for this financial product. Because they are simple and practical, many consumers are interested in opening a digital account. Check it out below. 

What are digital banks? 

In recent years, Brazil's financial market has undergone a number of transformations, one of which has been the creation of digital banks. This raises some questions among consumers, such as: what are digital banks?

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As its name suggests, a digital bank is a financial institution that does most of its financial operations online. Through these platforms, customers can access their bank account balance, carry out financial transactions and more. 

What's more, there's less bureaucracy involved in opening an account. Unlike traditional banks, customers don't have to go to a branch in person, but simply send all the necessary data and documents via the official app. 

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What is the difference between fintech and digital banking?

Although digital banks are adapting to deliver quality services and solutions to customers, the transformation is slow. For this reason, it is possible to observe that most of them still have a rigid structure. 

On the other hand, fintechs are constantly working to deliver quality services, investing in cutting-edge technology. Above all, these companies are considered startups, young institutions looking for space to build a new business model. 

Through technological development and investment, fintechs aim to grow rapidly. Most of the time, banks partner with these companies, adapting their services to something current and of quality. 

Startups are able to take advantage of a good number of customers from traditional financial institutions. In addition, these companies have the opportunity to validate and raise brand awareness. 

How digital banking works

In general terms, digital banking works like traditional banking, the only difference being that financial services and operations are carried out online. In addition, the process of opening an account is less bureaucratic.

Through the official digital banking app, customers can carry out financial transactions via PIX, payments and other operations. Some institutions offer investment services, such as fixed-income and variable-income securities. 

Another feature of digital banks is customer service. The whole process usually takes place through the app itself. Customers can contact professionals via chat, phone or email. 

If you need to make a deposit into your digital bank account, there's no need to worry. Access the bank deposits area in the app, issue a boleto and make the payment. The money will be available in your account within one working day. 

Withdrawals are also available, in most cases free of charge. If you need to make a withdrawal from your digital account, the procedure is simple: go to a Banco24Horas network and withdraw the desired amount. Remember to read the rules about this service. 

What are the advantages of digital banking?

As mentioned above, digital banking works just like traditional banking, but without the bureaucracy of opening a digital account. But that's not the only advantage the model has. Check them out below:

  • Easy account opening;
  • Possibility of taking out loans;
  • Access to free transactions, deposits and withdrawals (check the institution's rules);
  • Convenient access to invoices and bank histories;
  • Possibility of making investments;
  • Bill payments and bank slips;
  • Easy to contact customer support;
  • among others. 

It's important to check the availability of the services mentioned above, such as unlimited free withdrawals and financial transactions. This is because, in some cases, there is a limit to completing these services for free. 

Another advantage of digital banks is the possibility of opening your account without leaving home. Unlike traditional banks, where you have to go to a branch in person, the process is done on the institution's official app. 

Because of this, digital banks are known as virtual banks. But each one has its own characteristics and advantages, so it's important to get to know the model before hiring it. 

How to open a digital bank account

The process of opening an account with a digital bank is usually simple and practical. After all, unlike traditional financial institutions, there's no need to go to a branch in person. 

Anyway, if you want to avoid all this bureaucracy and enjoy the benefits of digital banking, there are some documents and information required when opening an account. Check them out below:

  • Full name;
  • CPF number;
  • Date of Birth;
  • Official Document with Photo (CNH or RG). 

Depending on how quickly customers fill in their details, the process is completed within a few minutes. In some cases, it is necessary to wait until the credit analysis has been completed. 

These are usually the documents requested when opening a digital account, but the institution may ask for more information. In short, it's important to evaluate your digital banking options before you take out these documents. 

Evaluate all the features and benefits the bank offers. There are many digital banks on the market today, so it can be difficult to find one right away. 

To make the process easier, think about what financial solutions the company needs today and in a year's time. Free institutions usually charge a lot of fees, but make sure you can afford to keep the free services and solutions in the long term. 

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