What is different about mobile banks to traditional banks?

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I get the fact that mobile banks are all done via the internet and apps but is that the only difference? With my traditional bank I can do almost all my daily banking via its app? So why would I switch to a mobile bank apart from the fact I get a cool looking card?


In: Economics

3 Answers

Anonymous 0 Comments

Just basing this on ads (so I don’t suggest taking it at face value). The primary selling point of mobile banks is that they can offer higher interest rates than traditional banks just because the savings bought on by the lack of brick-and-mortar infrastructure are passed on to their clients. The mere handling of loads of physical cash around is already a costly endeavor involving armored vans, endless security measures, vaults and auditors.

Mobile banks also used to have an edge because they had optimized cashless payment channels whereas in traditional banks, you had to fill out a form and wait for 1-2 banking days just to register a merchant. Nowadays, the old banks are catching up though.

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