Online-Only Banks: Features, Pros, and Cons 

The popularity of online-only banks is reaching the roof, even as research shows that 80% of people prefer managing their funds digitally. As digital banking is becoming popular, online-only banks are popular for managing funds.

Online-only banks are also called digital banks, and they help their customers manage their funds on the phone, mobile applications, and on websites. They offer services such as fund transfers, ATM withdrawals, debit cards, and bill payments. However, they operate without physical locations and branches.

Comparing Online-Only Banks to Traditional Banks

As expected, there are some services traditional banks offer that online-only banks don’t offer. Such services include currency exchange, bank signatures for financial transactions, as well as notarization.

With traditional banks, ATMs have more functions, including payments, funds transfers, and statements. With traditional banks, you can also choose to manage your finances at physical bank locations or online.

On the plus side, online banks have better-developed online platforms with improved interfaces and functionalities.

Advantages and Disadvantages of Online-Only Banks

The advantages of online-only banks are that they have lower banking fees and also deliver a better user experience than the crowded, ever-busy traditional banks. You can also track all your spending and financial history in real-time.

On the flip side, you don’t have personal connections to the bank, and you can’t visit a branch or see an accounts manager in case something goes wrong. You also won’t have the features that can only be made possible with physical banks. You can also expect more ATM fees because of the load of transactions you will be carrying out with your card.

However, there are reputable providers such as Suits Me that offer virtual appointments. Recently, Suits Me has introduced their Face To Face Appointment Service to all their customers and applicants.

If Suits Me customers encounter any difficulties with their account, there is no need to fret. With the introduction of the virtual face to face service, customers can receive personalized assistance and have their concerns addressed promptly.

Factors to Consider When Choosing an Online-Only Bank

Online-only banks differ and have different features and services, so it is important to choose a bank that best suits your needs. They include:


Consider transfer and service fees, overdraft, NSF, late payment fees, as well as maintenance fees and reimbursement limits. You should also look into foreign transaction fees if you will do a lot of foreign transactions.


The best online-only bank is one that has a lot of security features, including firewalls, SSL encryption, as well as multi-factor authentication. You should also look for security from fraud and tracking for lost cards.


Consider how easy or difficult it is to reach customer service for help, as well as different kinds of support including chats, calls, and email support.

ATM availability

Ensure that there are a lot of ATM partners and cards that can be used at the nearest points for withdrawals and even deposits.

Extra benefits

Other benefits can make your banking experience better, including rewards for savings and spending, free credit score reports, expense tracking, free checkbooks, etc.

Should You Choose Online-Only Bank?

If you hardly visit the physical branch and you care about more interest rates and less fees, online-only banks are best. But if you’re not big on online banking and like to make physical transactions, traditional banks are best for you.

Suits Me® offers online accounts that can be opened in minutes with no need for a credit score. You will have an online application and account with which you can handle your funds, as well as a debit card for other transactions.