are digital banks the future of banking ?

a large number of banks have come up in usa , europe and other parts of the world which don’t need new atm machines to work with .

• they use the existing automated teller machines
• have no physical branches – they exist on your phone
• allow payments via google pay and apple pay
• money can be transferred via a phone number
• no physical cash needed
• can tell you how much and where your money is being spent , in nice summarized graphs
• can automatically earmark funds for saving
• allow trading in stocks , crypto and commodities
• basically an entire bank in your phone
• the convenience of FIN TECH – the rising star in the venture capitalists funding

some names are ( this is by no means an all inclusive list )

• revolut
• monzo
• n26
• chimes
• starling
• monese
• curve
• transferwise
• aspiration

the need for cash printed by the government , depositing it in atm machines , providing security to move the cash , pollution from transportation vans , replacing soiled notes with new ones , cost of 30,000 us dollars per atm machine , operating system to run the computers inside , cc tv cameras for safeguarding the cash , sensors for detecting when the cash is about to get depleted – all these costs can be saved.

hopefully , the central banks and the governments realize the potential of this , pass on the savings to the customers in the form of higher savings rates .

at least then , the people will start saving more 🙂