Safety of digital banks: Are your finances secure?

  • With the rise of digital banks, more people are considering making the switch from traditional banking. However, safety and security are major concerns.
  • Digital banks are equipped with robust security measures to protect your money and personal information. By understanding these measures and taking steps to secure your accounts, you can enjoy the benefits of digital banking with peace of mind.
  • Digital banks operate primarily online, offering a range of services such as checking and savings accounts, loans, and investments without the need for physical branches. They leverage advanced technology to provide efficient and convenient banking solutions.

Digital banking enhances the banking experience by offering greater convenience, efficiency, and security for consumers while providing financial institutions with opportunities for cost savings, innovation, and improved customer insights.

While digital banking offers numerous benefits, it also comes with several risks that both consumers and financial institutions need to manage.

Benefits for digital banking

Customers can access their accounts and perform transactions at any time, from anywhere with an internet connection. Smartphone apps make it easy to manage finances on the go, including checking balances, transferring money, and paying bills.

Digital banking enables instant fund transfers and real-time updates on account activity. Services like direct deposit and electronic bill payments are processed more quickly compared to traditional methods.

Many digital banks offer lower fees compared to traditional banks, as they save on physical branch maintenance and staffing costs. Going paperless saves on printing and mailing costs, often resulting in lower fees for consumers.

Many digital banking platforms provide tools for budgeting, tracking spending, and setting financial goals. Users can set up alerts for various account activities, such as low balances or large transactions, enhancing security and financial control.

Digital banks use advanced security measures such as two-factor authentication (2FA), biometrics, and encryption to protect user data. Real-time monitoring systems can quickly detect and alert customers to suspicious activity.

Also read: Bank of Ayudhya Public Company Limited: Leading the charge in sustainable finance

Risks for digital banking

Security threats

Digital banking platforms are prime targets for cybercriminals, including hacking, phishing, and malware attacks. Personal and financial data can be compromised if banks’ cybersecurity measures are insufficient.

Loss of personal interaction

Customers may miss the personalised service and support that comes with face-to-face banking. Not all customers are comfortable or familiar with using digital platforms, potentially excluding some segments of the population.


Fraudsters can steal personal information to access bank accounts or open new accounts in the victim’s name. Scammers may trick customers into revealing their login credentials or other sensitive information.

Also read: Genesis to return $3 billion to users after bankruptcy

Tips for ensure own security

Use strong unique password

Use a combination of upper and lower case letters, numbers, and special characters. Steer clear of easily guessable passwords like “123456” or “password.” Don’t reuse passwords across multiple accounts. Consider using a password manager to keep track of your passwords.

Enable two-factor authentication

Use 2FA, which requires you to enter a second form of verification (like a code sent to your phone) in addition to your password. Use authentication apps like Google Authenticator or Authy instead of SMS-based 2FA, which can be more secure.

Keep software updated

Regularly update your operating system, browser, and any apps you use for banking. Apply updates as soon as they are available to protect against newly discovered vulnerabilities.


Rita Li

Rita Lian intern reporter at BTW media dedicated in Products. She graduated from University of Communication University of Zhejiang. Send tips to

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