The world is going digital all over, but banking is an industry that’s been slow on the uptake. While many banks today have online banking features and use various digital solutions to facilitate their work process, the way they transfer money still remains rather outdated. This issue has become so big that you can see some experts talking about how banks are becoming obsolete. That’s because they cannot keep up with the competition of bank alternatives that offer cheaper and faster services.
Of course, the role of banks in the modern world is so important that it’s far too early to talk about them being replaced completely. There are still operations that one can complete through banks only, like making utility payments. However, the number of such operations is dwindling as even governments recognize that the finance industry must change to accommodate the needs of the modern fast-paced world.
In response to this increasing demand, bank alternatives appear al over the world and each of these solutions offers a unique approach to financial operations.
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Top 10 Bank Alternatives Available Today
1. Radius Bank
Although Radius Bank is, in fact, a bank, it operates completely online. To make it even more convenient for people to use, it has widespread mobile capabilities. This means that Radius clients can use the majority of banking services they need through their smartphones.
In other regards, Radius is a bank through and through. It has ATMs and rewards and allows you to open checking accounts. The rates on offer are highly competitive, but they are still similar to traditional banks. The added convenience, however, makes Radius Bank stand out as a preferable option to many.
2. WorldFirst
WorldFirst is very different from a bank, but this company is one of the best providers of cheap and fast currency transfers. International currency transfers are the focus on this service and it’s one of the best of its kind in the world. Today you can use this service to transfer money or receive payments from dozens of countries. And these transfers won’t be subject to huge bank fees and currency exchange margins that can take up to and sometimes over 10% of the transfer amount.
WorldFirst has been recently bought by Ant Financial, which belongs to Alibaba. This introduced some drastic changes to the company and now it’s one of the very few in this industry that has fixed pricing. Due to this, it currently offers one of the cheapest ways to transfer money internationally.
3. Varo
Varo is a mobile banking service that offers you a chance to build up your savings because it offers a High Yield Varo Savings Account and a variety of automatic saving tools. There is no minimum balance requirement for your savings account to start yielding.
Other perks of this bank alternative include the ability to draw your paycheck early through direct deposit and the absence of overdraft fees. Varo allows you to overdraw up to $50. It has very low fees and few charges compared to a traditional bank.
4. TransferWise
Opened in 2011, TransferWise is now one of the world’s premier currency transfer services that values at $3.5 billion. TransferWise also has fixed pricing for international currency transfers, which was the feature that helped it become one of the industry leaders.
Today this bank alternative is a great option for transfers worldwide, be they business or personal. The larger the amount, the better the terms you get.
5. Moven
Moven is one of the industry veterans among mobile banking solutions and it has shown to be a reliable alternative to a traditional bank.
You can use Moven to open a debit card and a checking account (partners with CBW Bank). This enables you to complete all your banking transactions using the mobile solution. Built-in spending analytics tools help you become more financially savvy.
6. PayPal
PayPal is the ultimate e-wallet today, and it now also dabbles in banking. Despite high fees, PayPal still remains the only viable option for many small businesses and entrepreneurs who need to receive payments from abroad.
It is particularly popular with online retailers.
7. Simple
Simple Bank lives up to its name offering one of the simplest yet most multi-featured fintech solutions today. It’s much cheaper, faster, and more efficient than a traditional bank. It also has features that turn the app into a financial advisor that will teach you how to handle your money better.
Simple works with Bitcoin as well, which makes it even better-suited to those who are looking for the most progressive banking solutions.
8. Wirex
If you are into cryptocurrency, you will definitely love working with Wirex. This solution can help you manage your holdings in the most efficient manner. You can buy, transfer, and exchange 12 different digital and traditional currencies using this solution. Doing each will be easy with the simple app.
Wirex has all sorts of features and services, both for business and personal use. They include, but aren’t limited to the Wirex Visa card for collecting Bitcoin rewards, Wirex tokens, Wirex Business Account (allows both crypto and traditional payments), and many more.
9. Revolut
Revolut is a currency transfer service used by over eight million people. It’s reliable, simple, and has hedging tools to help make your currency exchange more affordable.
This is a good solution for travelers as it makes it easy to withdraw money abroad. You won’t pay any fees for ATM withdrawals up to £200 a month. But even after you exceed this limit, the fee will be 2%, which is lower than many traditional banks offer.
10. Alliant
Alliant is a credit union of the new kind. It’s much easier to join and its terms are far more flexible than the majority of credit unions and traditional banks. Note that you can join this union even if you don’t meet its eligibility requirements now. All you need to do is to support a non-profit affiliated with it.
You can use Alliant to open a checking account that will earn you 0.45% APY.
In Conclusion: Is the Future Bank-Less?
The rise of bank alternatives offers proof that traditional banks cannot continue to exist as they are. It’s true that they are irreplaceable in some areas now, but this won’t last forever. Therefore, they have to evolve or be wiped out by more efficient fintech solutions.
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.