Digital Banking Archives

Solid crypto trading strategies are necessary to trade successfully in the crypto market with so much volatility and uncertainty. With various approaches, it can be overwhelming for traders to determine which strategy suits them best. The following are the top 6 types of crypto trading strategies to choose from.

crypto

1. Swing Trading

Swing trading is a medium-term crypto trading strategy involving holding an asset for a few days or weeks to capitalize on price trend movements. Swing traders attempt to enter the market when the price is low and exit when the price reaches a peak. They capitalize on short-term trends to make quick profits over a few days or weeks, ultimately avoiding long-term commitments. They use indicators and technical analysis to identify the precise time to initiate a trade and employ stop losses to limit their losses. They often trade Bitcoin (BTC) or Ethereum (ETH) due to their high liquidity.

2. Day Trading Strategy

Day trading strategy involves buying and selling cryptocurrencies within the same trading day. Day traders typically execute several trades throughout the day and exit all positions by the end of the day. They focus on making small profits from each trade and limit their downside risk with stop losses.

Day trading requires extensive knowledge of technical analysis and can be emotionally challenging due to the need to make quick decisions based on market trends. That is why it is important to have a clear understanding of market structure. For example, if you are interested in Cardano, go through the Cardano price chart to better understand its history.

3. Arbitrage Trading Strategy

Arbitrage trading involves buying and selling cryptocurrency on different exchanges or markets to profit from price discrepancies. Arbitrage traders take advantage of temporary price anomalies by buying cryptocurrency on one exchange and selling it on another exchange at a higher price. With arbitrage trading, traders can make profits without risking their funds since they are guaranteed price differences that occur simultaneously. However, arbitrage traders must act quickly to capitalize on these opportunities.

4. Scalping

Scalping is a popular day trading strategy in which traders buy and sell frequently within short periods of time (seconds or minutes) to capitalize on small price movements. Scalpers try to make small profits multiple times a day. Scalpers need to have a clear exit strategy, as it only takes a small swing in the price against them, and they may end up incurring significant losses. Scalping requires excellent risk management skills and a significant amount of time to dedicate to trading throughout the day. While each trade may only yield a small profit, the cumulative effect can yield significant returns.

5. HODL

HODL stands for “Hold on for Dear Life.” HODL is the simplest crypto trading strategy where investors purchase a cryptocurrency, holding on to it for a long time without selling, despite price fluctuations. Traders believe in the long-term value of cryptocurrencies and often choose stablecoins to minimize the volatility in their crypto portfolio. HODLing is a passive investment strategy that involves minimal effort, as investors must monitor the market for news events that may affect prices.

6. Leverage Trading

Leverage trading involves borrowing funds to increase the size of a trade. It allows traders to amplify profit potential by borrowing money based on their trading position. Leverage traders can enjoy sizable gains on a relatively small investment. However, with proper management, traders can maximize their profits from leverage trading; using tight stop losses, taking advantage of larger margin levels, and diversifying their portfolio by investing in various cryptocurrencies. Leverage trading suits experienced crypto traders with effective money management strategies and an understanding of the risks involved.

Endnote

When choosing a crypto trading strategy, understand each strategy’s risk and reward potential. It is also essential to consider market conditions when selecting a strategy since some may perform better than others in certain situations. Research and understand the crypto markets before engaging in any form of cryptocurrency trading. As with any other investment, always remember to diversify your portfolio across different assets to reduce risks associated with exposure to one asset type or market trend.

Digital Banking

Crypto and Mastercard – Is the Relationship Growing?

ByCFI.co Blogger

It doesn’t matter what your options are when it comes to crypto because it is hard to deny that it is quickly becoming part of our world. We are seeing this quite a lot in the Mastercard network. People from all walks of life are now using cards to buy assets and this is especially the case when you look at the surge in value from Bitcoin. We are also seeing people take advantage of cryptocurrency cards so that they can convert them into normal currencies to spend. To be clear, the current trend is unmistakable.

Source: Pexels (CC0 License)

The Future of Crypto

Right now, we are preparing for the future of payments and crypto. It has been announced that Mastercard is going to start supporting a couple of cryptocurrencies and that this is going to be done directly through the network. At the end of the day, this is a huge change and it is indeed going to require a lot of work. The fact that Mastercard is willing to do all of this is a testament as to how much they are willing to try for their customers.

Mastercard and their Philosophy

The philosophy of cryptocurrency is very simple. It is really all about choice. At the end of the day, Mastercard isn’t here to try and push cryptocurrencies. They simply want to try and enable customers as much as possible. They also want to try and help merchants too. At the end of the day, it is all about choice and it is also about digital value, whether this is through traditional value or digital value. They do this in whatever way they want.

They ultimately believe that it is your money and you can do with it whatever you want. Mastercard believes that it can create a lot of opportunities for merchants and shoppers, as this is going to help them to transact and deal with an entirely new form of payment.

Crypto and Casinos

What’s interesting is that casinos across the world are now accepting cryptocurrency. Cryptocurrency is now one of the various online casino deposit methods for a lot of websites and it is not hard to see how far it has come either. People love the idea that they can now play around with Bitcoin online without having their online gambling experience compromised, and this is major, to say the least.

Helping Concepts to Flourish

People have said time and time again that they want to try and help concepts to flourish. They want to help people to reach their potential and they also need to help encourage guardrails. They want to enable customers to move any digital value that they have, in a way that suits them. They believe that ultimately, it should be their choice and that support should be given on any network where possible. Mastercard has come out to say that not every cryptocurrency is going to be supported on the network. Sure, stablecoins are way more regulated and they are also much more reliable when compared to what has happened in the past, but that being said, compliance still needs some work. It is expected that the ecosystem as a whole is going to start to rally around the assets and that stability and reliability is going to be brought to the forefront. It’s those stablecoins that Mastercard hopes to try and bring into the network.

Achieving the Right Result

So what are Mastercard looking for? They are currently seeking four key items. First of all, they need to make sure that they implement consumer protection and that they focus on privacy as much as possible. Next, they have to make sure that they meet strict compliance protocols. By doing this they can then snuff out any illegal activity so that they can stop deception from becoming an issue within the network.

Know Your Customer is going to be implemented as well and this is going to help snuff out any deception that could well take place within the network. These digital assets do follow local laws and they also follow local regulations within the sector. Of course, last of all, people will want to try and use assets like this for payments and that is one of the main criteria. To reach the network it is important for crypto assets to offer a high level of stability so people can use it for a vehicle of spending and not for any kind of investment.

Digital Banking

Bitcoin for Beginners: Everything You Need to Know

ByCFI.co

More than 106 million people worldwide use cryptocurrencies. Despite the rapid adoption of cryptocurrencies in recent years, many people still have very little understanding of them. Of all the cryptos we now have, Bitcoin is still the most popular, so if you want to get into crypto, Bitcoin is where you should start.

So what is Bitcoin, and why has it become so big? This Bitcoin guide covers what Bitcoin is for beginners and will get you started in the world of crypto.

Bitcoin for Beginners

Bitcoin is a digital currency that was invented in 2009. At the time it had a value of less than 1 cent per coin and has since seen all-time highs of almost $70,000. Bitcoin is traded using blockchain technology, where everything happens through a decentralized ledger. This means that no government or financial institution can control it in any way.

All transactions on a blockchain are recorded, and anyone can view the information. Bitcoin is secured with cryptography, which involves complicated algorithms to validate transactions.

Because there’s no central authority that controls Bitcoin, users can create accounts without making their identities public. You can make transactions without having to worry about anyone tracing them back to you.

The History of Bitcoin

Perhaps one of the most interesting things about Bitcoin is its origin. Despite all the things known about it, the actual creator remains a mystery.

When it was released in 2009, credit for the creation of Bitcoin was given to Satoshi Nakamoto. This, however, is not a real person, and the creator’s actual identity remains unknown to this day. There’s even speculation that “Satoshi Nakamoto” is a group of people rather than an individual.

One of the details specified in Bitcoin’s whitepaper is that the purpose of Bitcoin is to serve as a “peer-to-peer electronic cash system” independent of any central authority. Many people believe that this is a direct response to the financial crisis of 2008 so that regular people don’t risk suffering as a result of the greed of financial authorities and large banks.

Since Bitcoin’s creation, thousands of other cryptocurrencies have been invented with varying levels of success. Some have become very popular and valuable, but Bitcoin still stands at the top.

How to Buy Bitcoin

If you’re interested in buying Bitcoin, there are a few ways you can do this. The most common method people use is a crypto exchange.

There are several large exchanges available such as Coinbase, Binance, and Kucoin. For the most part, these are all relatively similar, but they do vary in terms of the cryptos they sell, the fees they charge, and certain smaller features. Take a look at some different exchanges so that you can decide which one is best for you.

Once you’ve settled on an exchange you need to create an account. Depending on the one you’ve chosen, you might need to provide ID for verification before you can start trading. You can add a payment method, with the easiest being a debit/credit card, but wire transfers and some other methods are also possible.

You can then start buying your crypto. You’ll have the option to buy Bitcoin or a range of other cryptocurrencies. Bear in mind that there will be a fee for every transaction, so look at the payment details on each purchase to see how much it is.

Remember that the value of any crypto goes up and down, so buying at different times will affect how much Bitcoin you get, even if the transactions are just minutes apart.

Selling Bitcoin

If you decide to sell any Bitcoin you own it works similarly, but you choose what to sell it for. You can sell it for a fiat currency (dollars, euros, etc.), different cryptos, or stablecoins. Again, like when you’re buying Bitcoin, the price will change with each transaction.

Stablecoins are useful if you want to hold your finances on the blockchain, but not as crypto. Stable coins are pegged to the US dollar, so unlike Bitcoin, the price doesn’t change, and they will always be worth the same dollar amount.

Storing Bitcoin

When you buy crypto it will be held in your account on the exchange you’ve used. You can keep it here, but most people prefer to transfer it to an external wallet for security purposes.

Soft Wallet

A soft wallet (or hot wallet) is a digital wallet that you can usually use as a browser extension or a smartphone app. They’re free and more secure than exchanges.

When you set up a soft wallet it will give you a 12-24 word seed phrase. If you ever lose access to your wallet you’ll need your seed phrase to get it back, so make sure you make a note of it and store it securely.

You shouldn’t save a seed phrase to your computer or anywhere else someone might be able to access it. If someone gets your seed phrase they may be able to steal all of the crypto in your wallet.

Cold Wallet

A cold wallet (or hard wallet) is a physical device that you can store crypto on. Like a soft wallet, these use a seed phrase, but they also have to be connected to a computer physically for any transaction to take place.

When it comes to strong Bitcoin, this is the most secure option. A hard wallet isn’t essential for everyone, but if you have a large amount of crypto then it’s generally a good idea to have one.

The Future of Bitcoin

As more people and organizations are adopting Bitcoin, it seems that it will only grow from here. Various retailers already accept crypto, and there are even Bitcoin ATMs all across the US. CFI.CO covers all things finance, helping you stay up to date with the latest information.

For more about Bitcoin for beginners, click here to visit our website and sign up for our newsletter.

Digital Banking

Sports sponsorships by crypto apps skyrocket in the past year

ByCFI.co Blogger

The sports sector has become the ideal target for some of the best crypto apps seeking growth. Some of the largest players in the cryptocurrency sector have announced strategic deals with sports clubs, leagues and organizations to attract new audiences.

Best crypto apps scramble for sports partnerships

The crypto space has grown significantly over the past year, and sports franchises have been open to securing deals in the world of cryptocurrencies. Some of the most reputable athletes have also pocketed deals, such as being brand ambassadors of some crypto projects or accepting their salaries in crypto assets.

Last year, some of the largest crypto sports sponsorships were recorded. The sponsorship deals were worth around $1.2 billion in total. One of the greatest sports deals secured last year was by Crypto.com. The exchange acquired naming rights for the Staples Center in Los Angeles for $700 million. They also spent another $210M in a major deal with UFC.

However, Crypto.com is not the only crypto app tapping into sports deals. FTX has also secured several major deals, including the naming rights to the Miami Heat arena last year. FTX also invested $210M for a sponsorship deal with TSM.

Other top exchanges like Binance and Coinbase are also investing in the space. Binance, the world’s largest exchange by trading volumes, was the major partner for the Africa Cup of Nations (AFCON) tournament. Coinbase is also the cryptocurrency exchange for the NBA.

Regarding the number of sports sponsorship deals secured, eToro stands out, having secured 36 sports deals with football teams based in Europe.

Football attracts more deals

The crypto industry is yearning to attract sports enthusiasts by marketing during major competitions. For instance, Super Bowl, the most televised sports event in the US with an over 90 million audience, attracted advertisements from leading crypto exchanges.

Football has attracted more sports deals than any other sport. At least 56 sports partnerships have been with football clubs, tournaments and players. Football is one of the most-watched sports globally, and it makes sense that crypto apps are focusing most of their attention here.

However, partnerships with football clubs have also attracted attention from regulators. For instance, Arsenal was banned from promoting its fan tokens last year. Liverpool fans also criticized the club’s decision to release a non-fungible token (NFT) collection.

Sports players are also venturing into crypto

Sports players are also entering the crypto space. Odell Beckham Jr, an NFL star, became among the first marquee sports players to receive a salary in Bitcoin. Around 8 NFL players accept part or all of their salaries in digital currencies.

After signing for the Jacksonville Jaguars last year, Trevor Lawrence agreed to take a huge share of his $24M signing bonus in several digital currencies, including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL).

Bitcoin has particularly become the top option chosen by players who want to receive their wages in digital currencies. However, fan tokens are also becoming a favourite, with Lionel Messi accepting PSG fan tokens after joining the French club last year.

Digital Banking

What Is Digital Banking?

ByCFI.co

There are now 14 million people in the UK who have a digital-only bank account. 76% of citizens have also used an online banking service in the last 12 months. But, do you know what these services are?

Both digital and online banking have some major differences. Read on as we answer the question “What is digital banking?”

What Is a Digital Bank?

A digital bank is a financial institution that has all of its operations online. Services that were previously available at physical branches can be undertaken in browsers, mobile applications and digital environments.

They do not have brick-and-mortar premises but exist solely through digital means.

What Is Digital Banking?

Digital banking involves transforming all activities, processes and banking products into digital transactions. This allows them to be done anywhere with internet access, making banking much easier for the consumer. Most services are 24 hours and do not require a staff member to be present in a bank.

Obtaining Records and Statements

Transferring Funds

Withdrawing Cash

Bill Payments

Account Management

Monitoring of Transactions

There are also many advantages for the bank itself. As many processes can be automated, it reduces human error and the labour required for repetitive tasks.

What Is the Difference Between Digital and Online Banking?

These two terms may seem interchangeable. However, there are two key differences between them.

Online banking works through internet access. It has several basic banking products and functions. However, the system has limitations and it can not expand to add further services to consumers.

You would find this in use with traditional institutions that have added internet banking as an additional service. It works alongside their other operations.

Digital banking is more in-depth and flexible. It has API, automation and web-based service at its core. This means it can provide more security and cost-efficiency.

A digital bank exists solely online. You don’t have branches you can walk into to make deposits and consult staff face to face.

If you want the ability to expand and add extra features, then digital banking is key. Metrics and analytics taken from it can help improve the customer journey.

There is a third option: Mobile Banking. This is when banks create a designated application so that customers can perform services on their mobile devices.

Benefits of Digital Banking

Digital banking has several benefits. It is changing at a rapid rate bringing advantages for consumers, business owners and the banks themselves.

Increased Accessibility

Digital banking means residential customers, businesses and their employees can access banking anytime. All they need is a device and internet access. They can approve expenses, make purchases and transfer balances.

This can take place anywhere. It may be in the office, on a commute or on a business trip. With the addition of mobile banking, it becomes even easier.

Improved Customer Experience

A well designed digital banking system also creates a better user experience. Chatbots are often available to assist customers with any problems or queries. This improves customer service while minimizing the workload of staff in the bank themselves.

Not only can tasks like scheduled bill payments be set up, but tools for financial management are also provided. Statistics on spending and saving along with financial planning are available.

Central Account Management

With digital banking, all departments can be accessed from one location. This means you don’t have to deal with different representatives. With mobile banking, you can even download multiple apps to represent your different accounts.

Lower Costs

Fully digital banks operate with lower overheads as they have less staff and no physical premises to operate from. They can offer higher yields on savings, lower interest rates on loans and reduced fees as a result. This is often done to attract customers who may normally get put off by the absence of a physical store.

Benefits to Employees

From small businesses to large corporations, digital banking can provide a huge opportunity for employees. With digital banking for businesses, you can assign several corporate cards to employees who may need access to faster means of purchasing to do their job.

With real-time metrics and analytics monitoring, business spending also becomes easier. Reviewing spending by category and approving purchases or expenses instantly is an advantage. Policies can be created and individual thresholds set for individual employees on spending.

By providing financial autonomy, you empower your individuals. At the same time, you also retain control over the finances of the business.

Limits of Digital Banking

While it has many advantages, digital banking should be viewed as a bridge. It can never replace the interaction you get at a branch and some transactions, such as deposits of cash and withdrawals, can not be performed.

To get around this, digital banks usually allow cash deposits in designated partner retail outlets. However, this can often incur a larger fee.

Future of Digital Banking

Digital banking provides flexibility, but customer needs are bound to change. This means a modular infrastructure needs to change with them. What works now may not do in one or two years.

Many banks are now starting to adapt and incorporate digital asset transactions and management into their infrastructure. This includes digital payment wallets and transfers. All of this is provided alongside the standard services for fiat currencies that people need.

Starting with Digital Banking

Now you can answer the question “What is digital banking?”, you just need to find the services that fit your needs. Not all banks will have the same offers. Make sure you look to see what you need and who can make the best provisions.

If you found this article helpful, CFI.CO blog has many more to help. From banking to finance, we can get the most from your money. Click here to see all our business articles and let us help your business boom in the coming year.

Banking

Methods to Improve Digital Banking Experience

ByCFI.co Blogger

Digital banking is a combination of mobile and online banking. Customers expect banks to create a banking experience culture that cultivates trust, nurtures their needs, customizes and surpasses expectations. A digitized banking experience ensures easy access across multiple devices, enhancing accessibility. Using live assistance tools like video chat and co-browsing, banks can provide real-time support, building loyalty.

Methods to Improve Digital Banking Experience

Customers want relevance and customized service. Using CRM software, banks gather insights into the customer journey, helping them deliver customer support. Digital banking safety is a significant concern for many customers. This is why banks should make customers feel secure when sharing personal information online. Here are ways to improve the digital banking experience.

Offer digital onboarding

Customer onboarding starts with applying a new account or service and goes on until the customer is fully engaged. While some banking institutions have part of their process digitized and require physical engagement to complete onboarding, consumers expect ease of completion and use security, digital documentation, and authentication capabilities that will streamline the whole process. When you integrate an ID card scanner into your apps and websites then combine it with optical character recognition technology, ID data is gathered and auto-filled in no time.

Promote mobile selling

As consumers continue to embrace digital banking channels, many in-person sales opportunities are also going digital. Consider personalizing product and service messages then make it possible for clients to purchase through a digital channel mainly because mobile access exceeds branch visits. Need-based services powered by advanced analytics are the way to go.

Include a real person option

Automated customer service options have become standard across several industries. While most of these services can only assist with the most basic requests, providing customers with real-time customer services when they can’t find what they want or have complex issues they need to be solved can boost their digital banking experience. You also include a live chat option for real-time assistance.

Leverage big data and analytics

To gain a sustainable competitive advantage with digital banking experience, understand your customers. Look at your customer’s banking experience and leverage the available data to improve the retail banking experience. Through analytics, banks can access insights to evaluate opportunities, segment customers, and enhance the customer experience for digital banking experience.

Keep mobile apps up-to-date

As customers continue to embrace mobile banking, banks should ensure that the experience is safe and seamless. Constantly updating banking apps allows you to get rid of old and dysfunctional features for more improved, secure, and fast-performing mobile services. Up-to-date mobile apps have fast loading times, improving user experience.

Talk to customers

Banking experiences are all about the customer. This is why they shouldn’t second guess the kind of experience customers want. To improve the digital banking experience, consider asking your customers’ perception of your services and what you can do better. You can survey email or leave a form on the mobile app for your customers to fill in whenever they log on. This can give you a lot of insights that you can use to customize the digital customer experience.

Endnote

Digital banking technology has streamlined most of the processes, making it easier for the consumers. Customers hold the key to success for banks. This is why every digital banking experience should be customer-centric.

Banking

A Guide to Online Banking Safety

ByCFI.co

71% of bank customers regularly use online and mobile banking options. However, many people do not completely trust online sources and may worry about their information being stolen when choosing an online bank.

Are you looking for ways to protect information and improve your data security? Keep reading these tips for online banking safety to learn more!

Don’t Use Public Wifi or Computers

One of the most important online banking safety tips to keep your information secure is to only sign in on your personal network or device. When you use public wifi that many people have access to, you never know who will be able to see your browser history or password.

This is also true for public computers. If you were to accidentally save your password for your online banking institution, it would be easy for a complete stranger to access your bank from the same computer.

To avoid these potential disasters, it is always best to use your own devices and your own wifi network whenever you have to log into a password-protected website.

Scan Statements for Fraud

While you want to do everything you can to prevent fraud, it is also important that you are able to identify any fraud as soon as possible.

One way that you can do this is by regularly scanning your statements for fraudulent activity. Check your bank statement for any purchases that you do not remember making.

While banks do their part to identify fraud, some purchases may not stand out to them. By looking for fraud in your own account, you may be able to catch suspicious activity.

Use Anti-Virus Protection

Next, it is important that you protect your devices with anti-virus protection. This can keep you from getting attacked by any viruses or malware.

Most computers come equipped with some type of anti-virus software, but you want to be sure that you frequently update it for the best protection for your computer.

Understand Common Scam Techniques

Something else you can do to protect your online banking information is to recognize and understand common bank scam techniques. Scammers will frequently use the same tactics to gain access to your information, so understanding these will prevent them from targeting you.

One common scam technique is sending you links in an email. While the email may look legitimate, you may find that clicking on this link may lead you to a fake website that looks just like your financial app. Digital currency investors are a big target for this type of scam due to the increase in cryptocurrency prices. A famous example of this was when MyEtherWallet users were sent an email asking them to update their login credentials. In doing so, they gave cyber criminals access to their account where they stole all the assets.

To avoid this scam, it is always best to re-type the URL to your banking institution rather than clicking on a link.

Your bank will also never request your private information over the phone or over email. If anyone is asking you for information to gain access to your account, you should hang up and call your bank directly.

Regularly Update Passwords

Many people will re-use the same password for many different websites. However, if someone guesses your password for one website, they may try using the same password on another website.

This is why you should always make your banking password unique from other websites.

The easiest way to combat keep people from guessing your password is to update and change your passwords regularly. Typically, it is best to change your password once every few months.

Then, anyone who had access to your account will be kicked out with the new password.

You should also be thoughtful about the types of passwords you use. If you make them one word or if your password is something easy to guess, like your name, people will easily be able to gain access to your account.

To make your passwords more secure, you should make them a long password with multiple words, numbers, or special characters.

Sign Up For Text Alerts

If you want to make it easier to identify any fraudulent purchases, you can always ask for text alerts from your online bank.

Banks can send you emails or texts whenever there are large transactions made from your account or if your balance drops too much.

If you notice that you didn’t make a purchase or transfer money from your account, you can immediately call your bank to stay protected from fraudulent activities.

Carefully Choose Your Bank

Finally, it is important that you do plenty of research to find the best online bank. If you know that you can trust your bank, you know that they will do anything to protect your assets and information.

Make sure you check online reviews for banks and you understand your banking needs before you make a decision. You should also prioritize finding an institution with high security to prevent data leaks or hackers.

For example, things like multifactor authentication make it much more difficult for people to gain access to your account without your knowledge.

If you want to learn more about choosing a bank, check out this article on factors to consider when choosing a bank.

Improve Your Online Banking Safety Today

You can easily improve your online banking information when you focus on data security. By following each of these banking safety tips, you will not have to worry about fraud, scams, or any other data leaks.

However, the most important thing you can do to improve your online banking safety is to choose a reliable and trustworthy organization to work with.

Make sure you choose the best online bank so you can be confident in your banking!

Do you want to learn more about online banking and other safety tips? CFI.co can help! Check out our articles on finance and banking to learn more helpful tips.

Banking

7 Benefits of Digital Banking

ByCFI.co

If you’re still writing paper checks, waiting in line at the bank, or meeting with banking associates in person in 2021 and beyond, you’re missing out.

In recent years, digital banking has exploded in popularity, with research suggesting that nearly 70% of people in the UK use mobile banking, with 86% using it as their primary banking channel. If you’ve noticed this growing trend, it may leave you wondering, “Should I start digital banking?”

If you’re unsure about making the leap, it’s time to learn more about the benefits of digital banking—and why you should take advantage of this new technology.

1. Simplified Onboarding

Online banking makes the onboarding process much easier for new customers. With a virtual process guided by the latest technology, applicants can provide required documents to open an account in no time at all—with no need to spend time on a face-to-face meeting with a bank associate.

Of course, it’s still important, both now and whenever you access your digital bank account, to follow through with basic online security practices. Be sure to look for the lock symbol in the address bar, avoid using public WiFi, and use a strong password to keep your data safe.

2. Higher Interest Rates and Lower Fees

This benefit, of course, can vary from bank to bank.

However, in general, you’ll find that online bank accounts tend to have higher interest rates than traditional alternatives. A high-yield online checking account, then, can earn you a little more in interest per year than an account with a traditional bank.

One other money-saving perk is the lower fees. Because online banking demands less overhead than the brick-and-mortar alternative, many online banks pass those savings along to customers. This means that you’ll find lower (or no) monthly maintenance fees, minimum account balances, and even transaction fees, depending on the bank you use.

3. 24/7 Banking From Anywhere

There are few things most of us hate more than a lengthy queue—especially when we only need to take care of a quick transaction.

With digital banking, it’s possible to take care of banking tasks from anywhere and at any time, which opens up a world of convenience. Most banks offer mobile apps that allow you to access your accounts even when you’re out and about, allowing you to double-check your transactions in real time. What’s more, your easy banking pairs well with any budgeting apps you already use for extra convenience.

4. Easy Check Deposits

Most mobile banking apps will save you the trouble of heading to a brick-and-mortar bank each time you need to cash a check. The process is simple: using the camera on your phone, you’ll need to take pictures of the front and back of the check. Certain banks may have additional requirements when you cash checks online, like writing a specific phrase in addition to endorsing the back of the check, but the process remains fast and easy no matter where you bank.

5. Online Bill Pay

For easier bill pay services, digital banking is a must. With most online banks, clients have the opportunity to set up payees in their account, allowing you to send a payment to the company or client in question whenever you need to. This ensures that you no longer have to worry about checks getting lost in the mail!

In addition, automation can make regular billing tasks even easier. Setting up recurring automatic bill payments can help you stay on top of your cash flow for regular expenses, like car payments or subscription services.

When needed, you can also authorize providers to automatically remove money from your account when your bill is due. This can be helpful for providers like electric companies or mortgage lenders. To do this, you will need to provide the company with your bank’s routing number as well as the checking number of your account.

6. See Transactions at a Glance

When you bank online, all of your past transactions are easy to access and view at a glance. This makes it more convenient to check your account history on a regular basis, especially at a time when many of us worry about unauthorized transactions and identity theft.

If you are more accustomed to traditional banking, you may also catch sight of a feature exclusive to virtual banking: pending transactions. With pending transactions, you’ll be able to see transactions that a merchant hasn’t yet processed. This helps you see and understand the full context of your spending, even when a charge hasn’t been authorized yet.

7. Transfer Money With Ease

Whether you’re transferring money to your own account or paying back a friend for those concert tickets, money transfers are easy when you bank online.

Instead of visiting the bank in person, you can start an online transfer and input the details of the account you’re sending money to. Once your request is complete, the transfer may take up to three days to move to the receiver’s account, though it’s often far less if the receiver has an account at the same bank.

Harness the Power of Digital Banking

Given these benefits, it’s not hard to see why digital banking is poised to grow in popularity in the next few years. With added convenience and quick transactions, it’s easier than ever to make the most of your money with an online bank. Consider opening an account today to see the difference it makes!

For more of the helpful banking and finance guides you need, CFI.co has you covered. Check out our related posts for more insights.

Banking

UBX appoints new Chief Investment Officer

ByCFI.co Blogger

In line with its strategy to explore and invest in companies and platforms of the future, UBX—the Fintech and Corporate Venture Capital arm of Union Bank of the Philippines (UnionBank) — is announcing the appointment of Matthew Kolling as the company’s Chief Investment Officer (CIO).

As CIO, Kolling will be managing UBX’s Corporate Venture Capital (CVC) fund. He will also play a key role in raising capital for UBX while assisting the company in key corporate transactions, including the structuring of joint ventures and acquisitions.

Prior to his appointment at UBX, Kolling has been Head of Venture Investments at Aboitiz & Company since 2019, wherein he had been working with UBX on investment portfolio decisions. Before that, he held senior positions in Private Equity, Venture Capital, and Investment Banking at firms such as Providence Equity Partners and Morgan Stanley in New York.

Kolling has more than 20 years of experience in managing investments and deals in the Technology and Telecommunications industries and is active in Venture Capital and startup communities in the Philippines and the Southeast Asian region. He currently chairs the Manila Angel Investors Network, among others.

“We at UBX are excited to welcome Matt as our new CIO. We firmly believe that Matt will be instrumental in driving value creation opportunities, both within the CVC fund and our corporate ventures. We look forward to working with him as we fulfill UBX’s vision of a future where banking services are embedded into everyday experiences that matter,” said UBX president and CEO John Januszczak.

Meanwhile, UnionBank president and CEO Edwin Bautista said, “The addition of world-class talents in our pool reinforces our strategy to future-proof the organization and our business as we prepare for many new opportunities that come with the changing times.”

Banking

Philippine Bureau of the Treasury is among Asia’s pioneers in leveraging Distributed Ledger Technology (Blockchain) for bond distribution

ByCFI.co Blogger

The Philippine Bureau of the Treasury (BTr), together with Union Bank of the Philippines (UnionBank) and the Philippine Digital Asset Exchange (PDAX) – a Bangko Sentral ng Pilipinas (BSP) licensed entity, is the first in Asia to launch an app for the distribution of government bonds enabled by Distributed Ledger Technology (DLT).

Philippine Bureau of the Treasury is among Asia’s pioneers in leveraging Distributed Ledger Technology (Blockchain) for bond distribution

National Treasurer Rosalia V. De Leon said, “The launch of Bonds.PH paves the way for all Filipinos, particularly the unbanked, to easily and affordably invest in the BTr’s newest retail treasury bond, RTB-24. The mobile app presents a compelling opportunity for all to invest and help the Republic raise funds for economic recovery and COVID-19 response.”

Bonds.PH makes bond investing easy. It’s completely digital and available 24/7. Filipinos can invest in retail treasury bonds by downloading the app and pay, for as low as PHP 5,000.00, using InstaPay, GCash, Paymaya, and digital as well as over-the-counter at UnionBank.

Treasurer De Leon, Finance Secretary Carlos Dominguez III and UnionBank Vice Chair Justo Ortiz onsite, together with BSP Governor Benjamin Diokno and National Economic and Development Authority (NEDA) Secretary Karl Kendrick Chua virtually, did a demo of the Bonds.PH app at the official launch held yesterday.

“This is the first retail treasury bond issuance to leverage on blockchain technology – in Asia, and likely the world,” said Edwin R. Bautista, UnionBank President and CEO. “The Philippines is ready to lead the way into the future and tech up the nation with innovative, inclusive opportunities, powered by emerging technologies, for the benefit of all Filipinos.”

Bonds.PH is blockchain-enabled as transactions are recorded in a DLT-based registry in addition to the existing NROSS system. DLT enables immutable and tamper-proof record-keeping as it is recorded on the blockchain.

According to Nichel Gaba, Founder and CEO of PDAX – a fintech investment of UBX (a UnionBank subsidiary), “DLT or blockchain technology is governance by design with its cryptography and programmable smart contracts. This advantage allows the blockchain not only to preserve truth, but also to automate payments, enforce rules, and facilitate complex transactions via smart contracts at little to no cost.”

As such, DLT reduces manual verification and simplifies reconciliation bringing down processing time and costs. This is why the BTr sanctioned the pioneering effort so that through the pilot it can determine if leveraging DLT makes retail treasury bond distribution to the unbanked feasible and economically viable.

The Monetary Authority of Singapore (MAS) commended the groundbreaking endeavor.

“I want to congratulate the Philippine Bureau of the Treasury (BTr) for this important milestone,” said MAS Chief FinTech Officer Sopnendu Mohanty.

He added that, “2020 will be the year of commercialization of blockchain technology in the ASEAN region, and BTr’s efforts to build a DLT registry for bond issuance accelerates the success of the most exciting technology of our time. The blockchain community in Singapore will work together with the Philippines to share learnings, open-source resources and also facilitate connecting corresponding nodes to integrate market infrastructure for transparency and interoperability. The recently released Project Ubin Phase 5 findings by MAS will facilitate the creation of robust blockchain rails for future value creation.”

Chia Hock Lai, Co-Chairman of the Blockchain Association Singapore (BAS) and Chairman of the Singapore Fintech Association (SFA) said BAS and SFA are one with the MAS in fully supporting the Philippines and UnionBank in utilizing blockchain for financial inclusion.

The Philippine Securities and Exchange Commission (SEC) likewise offered its support.

“With our mandate to facilitate financial inclusion while maintaining investor protection, we support this initiative, which makes use of Distributed Ledger Technology,” said SEC Commissioner Ephyro Luis B. Amatong. “We look forward to the results from this initiative, which will contribute greatly to future DLT use cases for capital markets,” he added. The Philippine SEC is among the more progressive regulators in the world having released rules on crowdfunding, as well as draft rules on digital assets and digital exchanges.

Meanwhile, the BSP lauded the initiative for its impact on inclusive prosperity, “Given our advocacy to accelerate the digital delivery of financial services while deepening financial inclusion, we view Bonds.PH as a welcome addition to the expanding suite of available financial products serving wide market segments via innovative delivery channels and bridging the financially excluded,” said BSP Governor Benjamin Diokno.

“From the basic easing of the public’s access to transaction accounts to now this offering of retail treasury bonds to the masses in a simplified yet secure manner, shows the remarkable progress of our shared financial inclusion agenda. This surely marks the transition of blockchain technology from its buzzword status to a feasible, production grade solution capable of democratizing access to digital financial services,” said the Central Bank Chief.

“We look forward to the expansive adoption and success of this initiative and the public can always count on the BSP to remain supportive of responsible digital financial innovations,” he added.

UnionBank Vice Chair Ortiz, who also serves as Chairman of the Distributed Ledger Technology Association of the Philippines (DLTAP) and the Philippine Payments Management, Inc. (PPMI) added that, “Democratizing investment through digital channels and Distributed Ledger Technology allows all Filipinos to contribute to and accrue the benefits of nation building. Every Aling Belen and Mang Juan can save and invest. Download Bonds.PH now from the Apple App Store and Google Play Store and invest in our country!”