Life has been made easier with and since the introduction of digital banking and its services. We are in the 21st century and the majority of the world’s population, including underdeveloped, developing, and developed countries have taken to digital banking. People rarely go to banks so as to have access to its banking services or make financial transactions such as money transfers, account deposits, obtaining loans, and making complaints. Anybody from any part of the world can gain easy and uninterrupted access to all these banking services with just a good internet connection and a working mobile phone.

What Do We Understand About Digital Banking?

Digital banking is a technologically improved way of managing your financial records effectively. It is a more advanced or developed method that gives you access to your bank account, its services, and its management. Personalized transactions can be completed without you going to the bank through the usage of digital banking applications.

The emergence of digital banking has completely gotten rid of the urge or the need to visit a local branch. As of the present, it has replaced a consumer’s physical self with an unlimited online presence. The advantages of digital banking have exceeded its total cost. Makes it easy to instantly send and receive money from a mobile phone.

There are lots of digital banks in the United States of America. But some of them are the best of the best. Each of these banks is unique in its own aspects, ranging from offering loans, good customer service, investment, business growth, and risk management.

And now taking a look at the best digital banks in the United States, that I have put together.

1. Ally

2. Chime

3. Axos

4. Cash App

5. Current

6. Majority

7. Mercury

8. MoneyLion

9. Lili

10. Cogni

1. Ally

Ally is a digital bank that offers all expected and necessary services. It was founded in 2009, with its headquarters located in Sandy, Utah. And its CEO as of now is Jeffrey J. Brown. They have three unique principles with which they strictly stand which are: do right, talk straight, and be obviously better.

Pros

• 24/7 customer service via your mobile phone, email, or live chat.
• Easy accessibility to banking products from anywhere in the world.
• Full and adequate bank service offering rates on savings, loans, and retirement services.
• No fees on monthly maintenance. 
• No prerequisite on your account balance.

Cons

• Ally bank doesn’t have any physical branches around the world.
• Depositing cash isn’t allowed.

2. Chime

Chime was founded in 2013, It is a digital bank formed by Chris Britt and Ryan King, who are currently the CEO and CTO respectively. Chime ensures your money is kept safe with security features. It protects your information and prevents any kind of unauthorized usage. They make available an easy-to-use banking system to let its customers be financially stable and healthy. Banking services are effectively provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC [Federal Deposit Insurance Corp].

Pros

• There are no account balance requirements if an account wants to be opened by a customer.
• Fees won’t be deducted if you make transactions abroad.

Cons

• Their banking services are limited.
• Cash deposit locations are also limited.

    3. Axos

Axos was founded in 2000 under the name Bank of Internet USA. But in 2018, it changed to its current name. Axos presents you with a broad series of innovative financial products and services with the best security. Axos digital bank comes with features such as access to bank accounts, transferring of funds, payment of bills online, and depositing mobile checks. Similar to other banks of the same category, Axos offers effective, as well as flexible payment and money transfer choices.

Pros

• It offers full-time online banking services such as savings, loans, and investment options.
• No monthly fees are deducted on deposit accounts.
• Multiple checking account choices.

Cons

• It has no physical location because its operations are mostly done online.
•  They don’t offer face-to-face interactions with their users and that might be a serious turn-off.

     4. Cash App

Cash App, A digital bank that was founded back in 2013 by Jack Dorsey and Jim McKelvey. It was a money transfer service developed by Square Inc. This app allows its customers to partake in its investment process. Between 2018-2010 the ability to buy stock was added and the means to trade with bitcoins was made available on the app. Square Cash also allows its users to have their special usernames, which is known as a $cashtag. It enables its users to perform transactions or financial operations from various users by entering this username.

Pros

• No fees are attached for making payments when you connect the Cash App to a bank account or debit card.  
• The ability for its users to invest in cryptocurrency or stocks.
• Its financial transactions are secured, concealed, and safe.

Cons

• Cash apps are not insured by the FDIC, so if by any chance it crashes or shuts down your money is unguarded and unprotected.
• Strict withdrawal and spending limits.
• Its functions are limited.
• It’s prone to scams and fraud.

     5. Current

Current was founded in 2015 by Stuart Sopp, who is currently the CEO of the company. and it was designed to add swiftness and convenience whilst also allowing its users to closely take care of their financial affairs. 

Pros

• They are FDIC insured, meaning your money is protected and covered by insurance.
• Instant financial transactions.
• The app gives you restricted access to monitor and manage your banking activities.

Cons

• There is a limit to the money that you can have in your account. Your minimum debit balance is $10000.
• You can only withdraw $500 daily when you use your ATM.

    6. Majority

Majority is a digital bank that was founded back in 2019 by Johan Dahlqvist, Johan Granlund, and Magnus Larsson who is the current CEO. Sutton Bank is its partnership bank. It was created specifically for international communities, including US citizens. Meaning it is majorly for migrants but you necessarily don’t have to be a migrant before you can actually use this mobile account. Although it was brought in 2019, the company allows you to make phone calls to mobile phones and landlines in 36+ countries. 

Pros

• Free and unlimited phone calls to foreign countries like Mexico, including  20+ more.
• Fast, secure, and instant payment.
• No fees are deducted when making foreign transactions.

Cons

• Strict transfer policy. The ability to transfer money is limited.
• Your maximum account balance is $10000

     7. Mercury

Mercury was founded in 2017 by its current CEO, Immad Akhund, Jason Zhang, and Max Tagher. Its partner banks are Evolve and Trust. It is known to be the best digital banking system for business startups. Mercury is mainly for US-registered companies, especially small business owners.

Pros

• Advanced technological tools to customize and design your banking.
• Transactions are fee-free and unlimited.
• No required deposits when opening an account with Mercury.

Cons

• It doesn’t back cash deposits, rather it is focused on online transactions.
• Unavailability of its mobile app for Android users.
• Sole proprietors do not have access to Mercury.

     8. MoneyLion

MoneyLion is a banking platform that operates digitally and was founded in New York back in 2013, by some set of finance specialists by the names Diwakar Choubey, Chee Mun Foong, and Pratyaush Tiwari. Who are the CEO, CTO, and CIO respectively. It offers lending options, financial advice, and investment services to its users from time to time. 

Pros

• Boost your credit score.
• It is perfect for amateur investors.
• Registration is made easy and convenient.
• They make provision for tools to track your finances and manage your credit.

Cons

• Unavailability of physical branches.
• Its customers are only entitled to obtain small loans.
• Poor customer service.

     9. Lili

Lili, A digital bank that provides services financially for freelancers and contractors through Choice Financial Group. It aims at inspiring freelancers with the devices to make their source of income and their social life better. It is best for independent freelancers who struggle with their work’s finances. It is based in New York. They have three values on which their company is built upon. And they are; freedom, design, and togetherness.

Pros

• It is FDIC insured.
• Customers get paid early.
• Zero percentage on foreign transaction fees.
• No minimum deposit to open.
• 30 days free trial.

Cons

• Wire transfers can’t be made.
• Inability to open an account using your Employer Identification Number (EIN] during the application process.

    10.  Cogni

Last but not the least, Cogni, a US-based digital banking platform that provides easy access to your finances without charging any additional or unrequired fees. It was founded in 2018 by its current CEO, Archie Ravishankar. But launched only on March 20th, 2020. Its mobile app helps users deposit money, help keep track of their finances and make payments. Cogni is said to be developed to clearly understand their user’s needs and offer them unique services that meet their particular way of life and standards.

Pros

• FDIC insured.
• Free transactions with two or more people.
• No account maintenance fees.
• No minimum balance requirement fees.

Cons

• Since it’s US-based, it’s not available in other countries. Meaning interested customers will have to wait.
• Cogni is a new app, and that will make its website limited and incomplete in some areas.

Conclusion

The above list has the most adequate and exquisite digital banks with excellent qualities that will definitely overcome the pressure and problems brought upon customers by their different local banks and assists them to manage their financial transactions technologically