There is a huge revolution that has been happening in the Brazilian and world financial markets. As a result, different types of financial institutions emerge with new proposals at all times, such as digital banks. Thus, many people are confused about the best type to carry out their financial transactions, whether in a digital bank or a traditional bank.

So, with that in mind, we decided to create an exclusive article about these two types of financial institutions. That way, you can see a comparison of the main features of each one.

So, if you are one of those people who are still confused and have doubts about digital banking or traditional banking, this article is for you!

Don't worry, we'll help you and answer your questions! Just stay with us and keep track of all the information we've gathered for you.

Let's go?

As we said, there are an increasing number of digital banks in Brazil. Thus, the proposals of these new banks are often different in relation to the options that a traditional bank offers.

Especially because the customer profile that these two types of banks seek to attract is, in general, different.

So, for those who are in doubt and want to make a decision between a digital bank or a traditional bank, we have gathered the main differences between them and their digital and traditional accounts. That way it will be easier to decide. 

Check out!

One of the main differences between a digital bank account and a traditional bank account starts with the opening process itself. 

Thus, in general, traditional bank accounts will require a bureaucratic process that involves presence at the physical branch, presentation of paper documents and signature of the contract in person.

The innovation of a digital bank account is a fully automated and online application and opening process. So, there is no need to even leave your house to open a digital account! 

In addition, the documents can be sent scanned and the signing of the contract also takes place online. Thus, digital bank accounts are attracting more and more new customers, especially in the current pandemic moment when the ideal is to avoid going to places in person.

Because whenever you opened a checking account at a traditional bank, you had to pay a series of maintenance fees, right? Thus, those who wanted a good package of benefits for their financial transactions ended up paying higher fees.

However, digital bank accounts came to revolutionize this issue of fees as well. That is, with a digital account you can enjoy practically the same benefit packages as a traditional bank checking account, but with lower fees!

So, those who have a digital account can open their digital bank account for free and still have cards with no annual fee and easy and free banking services, compared to what a traditional bank usually offers.

But let's talk more about the differences in banking services below.

As we said, a digital bank usually offers the same package of services that a traditional bank does. However, a digital bank has much more accessible online resources, which allow the customer to easily manage their finances through apps and digital platforms that talk to each other.

Since there are no physical branches in a digital bank, everything needs to be resolved easily through the internet and digital media. That is, there is more autonomy for the customer to enjoy banking services.

Moreover, this is even reflected in the way in which the service to the user occurs. But let's understand better next.

In a traditional bank, what is most common are queues at physical branches. Because if you need to talk to a cashier or your manager, you have to deal with a huge waste of time.

However, in a digital bank you can solve most problems and doubts remotely and quickly. Thus, customer service is always easily accessible on the bank's digital platforms, with high rates of resolution of complaints and good ratings from customers for the service.

Recently, the new fintechs and digital banks are realizing the need to show the importance of financial education, just like us here at Senhor Panda. In this way, another differential of the digital bank is to offer support to the development of the financial education of its customers.

Thus, many already have areas on their exclusive digital platforms to help people with personal finances and other matters related to the world of finance. 

In addition, the applications of digital banks already offer assistance in matters of financial education and provide various information.

But we cannot notice that the traditional bank is also noticing this growth in the demand for financial education. Thus, some banks are already starting to pursue and offer support to finance knowledge for their customers.

Especially in relation to the world of investments and the stock exchange, both the digital bank and the traditional bank are seeking to bring good information to their customers, attracting their investments.

As we said, a traditional bank will always have physical branches to serve its customers. In general, there are those who prefer the option of being able to count on service in physical branches, but the tendency is for this to change.

Thus, the proposition of a digital bank without physical branches is attracting more and more customers. Mainly among the younger audience that has already grown up with the culture of the digital world and is used to solving their problems through the internet.

However, the lack of physical branches with ATMs can make withdrawing cash difficult. Thus, many digital bank customers end up having to pay fees to withdraw money from Banco24Horas ATMs.

However, some digital banks realized this nuisance and started giving free limited withdrawal bonuses monthly to customers. In addition, some banks even offer completely free withdrawals along with digital accounts.

In general, the advantages of a digital bank over a traditional bank will depend on what you expect from your bank. That is, it will depend on your profile as a customer.

However, with the current pandemic context and the growth of the digital world, there is no way to deny the benefits of opening an account at a digital bank. Therefore, we have gathered below what are the main advantages of a digital bank over a traditional bank. 

So keep reading and check it out!

As we said, when you open your account at a digital bank you already realize that you are going to get rid of the old bureaucracy of a traditional bank. That is, your account can be requested and opened without you even having to leave your home.

Furthermore, all documentation and signing of the contract takes place digitally, without the need to send paper documents and travel to sign anything! Pretty cool, isn't it?

When a bank offers to open an account free of charge and without bureaucracy, naturally it already demonstrates that it has more agility in its processes and in customer service. Thus, the digital bank stands out from the traditional bank when it comes to speed of service.

Because, as we said, everything needs to happen online. So, there are no queues and the possibility of forgetting one or another document at home, having to reschedule the visit to the bank branch. Even because there aren't even physical branches in a digital bank, right?

Those who open a digital bank account can also count on the advantages in terms of banking resources and services. First, the digital bank will offer the same services as a traditional bank. However, there is a wider variety of different benefits, such as cashback programs, partnerships, discounts and exclusive offers.

And all directly through your digital bank application! In addition, digital accounts offer financial products with simpler application, from credit cards with no annual fee to personal loans.

But it's not over: the digital bank account also offers the facility of a virtual wallet, and some banks, such as Nubank, offer direct income on the value of your account balance.

Thus, the money that would remain there in the balance without paying off in a traditional bank checking account, can pay off as a fixed income investment with some digital banks.

That's the most important question: with all these differences in terms of benefits, fees and services, should you choose a digital bank or a traditional bank? 

Well, basically it is impossible to deny the influence of fintechs and digital banks in the Brazilian financial market. Therefore, it is necessary to pay attention to the difficulties that opening a current account in a traditional bank can bring, if that bank does not keep up with the news in the world of finance.

So, what we mean is that a digital bank in general will always be ahead of the traditional bank when it comes to:

But, of course, there is the issue of security. Because a traditional bank can give greater confidence to the customer so that they leave their money with them. However, even in this regard, the option of a digital bank can be interesting.

Because there are digital bank options that are arms of a traditional bank. For example, both Banco Santander and Bradesco invested in the creation of digital banks, Superdigital and Next.

This way, you can have all the benefits of a digital bank, with the solidity that a large traditional bank like Santander and Bradesco can offer. Very interesting, isn't it?

So, we conclude that from now on, the customer will always find greater advantages, in terms of opening an account and credit card, in a digital bank and not in a traditional bank. However, traditional banks are still the favorites when it comes to financing.

So we come to the end of our exclusive article on the features and benefits of digital banking and traditional banking, and which one would be the best choice for you. So hopefully now it's easier to decide!

But if you still have some doubts, check out our content with a lot of information about finance, financial products and banking services. Until later!