BANKING

Traditional Banking Vs. Digital Banking

Published

2 years ago

Traditional Banking Vs. Digital Banking: What Are The Differences?

Banks have impacted our daily lives, and when you are conducting business, this is especially true. Additionally, it’s crucial to pick the right bank for your company. When I say choosing, I also mean deciding between going for a traditional bank and a digital bank.

This begs the question of what distinguishes a digital bank from a traditional bank. Brick-and-mortar banks are traditional banks. A bank where transactions must be carried out in person. The banks that don’t require your physical presence are digital. You can conduct financial business whenever and wherever you feel comfortable.

Traditional Banking Vs. Digital Banking

However, today’s banking customers have a wide range of options for their banking requirements. Traditional banking was the go-to method for conducting bank business for many years. But thanks to modern technology, users can now access banking services that may be completed online or on mobile.

What Are Traditional Banks?

A traditional bank is a financial institution that does most of its business on-site. Most traditional banks still rely on physical locations to provide your banking needs, even though some offer limited online banking facilities. To assist with this, a conventional bank will have branches nationwide, and many will also have their own branded ATMs.

Traditional banks are ultimately chartered and possess their banking licenses. They frequently provide various financial services, including bank accounts, debit and credit cards, lending, credit reporting, and many other options. Customers should expect to pay more for various services because all this comes at a price.

What Are Digital Banks?

A digital bank is a bank that has its entire operations online without physical locations. Digital banks, also called Neobanks, pair banking services with financial software to provide a reliable yet user-friendly interface with beneficial business synergies.

It’s vital to remember that because of the restrictions on banking licenses, most neobanks aren’t properly regarded as full-fledged “banks. To provide financial services like FDIC-insured bank accounts, money transfers, and withdrawals, they instead collaborate with “Banking as a Service” (BaaS) providers.

Differences Between Traditional Banking And Digital Banking

Account Opening

Choosing a conventional bank or a digital platform like FinCra will significantly impact how you open an account.

You may apply for a FinCra account online within a few minutes as long as you supply all the necessary information to have a successful account verification.

But it takes much longer to open an account with a traditional bank. Even though some big banks are beginning to offer an online application process, most still require you to go in person to a location before you can start your application.

Account Fees

When discussing digital banking, it’s difficult to avoid mentioning fees, or more specifically, the lack of them. Digital banks, who entered the market using a more sophisticated business model, have raised the bar for the amount of service that businesses might expect before being subjected to banking costs.

Most neo-banks offer fees that are either free or almost zero, in contrast to the high maintenance fees and hidden costs connected with traditional banks. For instance, you are not required to maintain a minimum amount or pay any account fees when you use fincra.

Customer Service

Customer service is the following key distinction between digital and traditional banking. To emphasise this, prominent digital banking provides online support, whereas traditional banking only offers in-person assistance.

Due to the more quick and more thorough customer service that digital platforms can provide, more business owners are now shifting towards digital banking. For instance, you can contact fincra’s customer service by email and chat assistance in addition to visiting the Lagos office (Nigeria) or the office in Canada.

Data And Integrations

The focus on integration with other financial instruments is another crucial distinction between neobanks and conventional banks. You’ll likely want to connect your bank feed with your accounting software (like QuickBooks Online or Xero) if you’re opening a business banking account. You can integrate your accounting software directly with fincra’s API.

Additionally, you receive pervasive information about every transaction, allowing you to quickly and easily understand the details of every purchase. Your bookkeeping will be completed rapidly and with less effort.

On the other hand, most traditional banks are still learning how digital firms run, what kinds of data business owners want, and what linkages are necessary to automate corporate operations. When you bank with a traditional institution, you might have to put in a lot of effort to find out the details of each transaction and reconcile your bank statements by hand.

Automated Payment

When it comes to cutting-edge features for accounts payable administration, digital banks win. A platform like Finca enables you to send money and make payments for utilities without ever leaving your account, whereas some traditional banks only offer the most fundamental AP functions.

You can sync everything back to your documentation software, set up single-step and multi-step approval workflows, pay invoices from your fincra account, and unpaid import payments directly into your banking account.

Pros And Cons Of Traditional Banking

While traditional banking does not always provide the same conveniences as digital banking, it does offer a wide range of services, so you can probably find all you need in one location. A traditional bank may be a better option if you place the highest value on in-person customer service.

Pros Of Traditional Banking

Face-to-face customer service
Investment services
Access to a savings account

Cons Of Traditional Banking

High account maintenance fees
Low-interest rates
Lack of Convenience

Pros And Cons of Digital Banking

In terms of account costs, accessibility, integrations, and teamwork tools, digital banking takes the card. If that’s what you want, it could be time for digital banking.

Pros Of Digital Banking

Online account opening
Low fees
Multiple account checking

Cons Of Digital Banking

No physical location
Varying features from bank to bank

Conclusion

The future of banking is digital — especially if you’re a business owner. With digital banking, you can cut down on fees, get better integrations with your accounting software, securely collaborate with your team and get better visibility into how much you’re earning, saving and spending every day.

Therefore, consider using fincra if you send and receive money anywhere in the world. See

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FINTECH

Fincra Granted Payment System License in Tanzania

Published

2 weeks ago

Christopher

Fincra Granted Payment System License in Tanzania

Fincra Receives Payment System Provider License from the Bank of Tanzania, Expands Regulatory Footprint in East Africa

Fincra, a leading pan-African payment infrastructure company, has received regulatory approval from the Bank of Tanzania through its 100% controlled local entity to operate as a licensed Payment System Provider, enabling it to deliver secure, scalable, and compliant payment services across Tanzania.

Fincra Granted Payment System License in Tanzania

This approval, granted under the Payment Systems Licensing and Approval Regulations, 2015, authorises Fincra to provide payment services in Tanzania. The license represents a significant milestone in Fincra’s East African expansion strategy and underscores its commitment to working closely with regulators to build trusted financial infrastructure across the continent.

“We are thrilled to receive this license from the Bank of Tanzania. It reflects our long-standing commitment to regulatory integrity and positions us to deliver even more value to businesses in East Africa,” said Wole Ayodele, CEO at Fincra. “This is a key part of our mission to build the rails for an integrated Africa”

The license allows Fincra to offer its suite of payment products and services to businesses operating in Tanzania, including local collections, business payouts, and API-based infrastructure for real-time payments, all while maintaining full compliance with the regulatory framework set by the Bank.

Fincra’s entry into Tanzania is strategically aligned with the country’s growing digital economy and its push for financial inclusion. Businesses in sectors such as fintech, logistics, travel, retail, and remittance will now be able to leverage Fincra’s infrastructure to scale faster, move money more efficiently, and expand across borders.

This development follows Fincra’s earlier regulatory approval in South Africa as a Third Party Payments Provider (TPPP) and cements the company’s position as one of the few African fintechs actively building a multi-market regulatory foundation to support a truly pan-African financial ecosystem.

About Fincra
Fincra is building the trusted financial infrastructure for businesses in Africa to move money locally and globally. Through a suite of APIs and no-code solutions, Fincra enables secure collections, payouts, and settlements across borders, with full regulatory backing in every market it operates.

Create a Fincra account in 3 minutes here.

FINTECH

Fincra Secures South African TPPP License

Published

2 weeks ago

Christopher

Fincra Secures South African TPPP License

Fincra, a leading provider of payment infrastructure for local and cross-border payments in Africa, is proud to announce receipt of another Third Party Payments Provider (TPPP) in South Africa.

Under this license, Fincra is now authorised to process the following types of payments:

Credit Card
Debit Card
EFT (Electronic Funds Transfer) Credit
Real-Time Clearing (RTC)
Rapid Payments

The license reinforces Fincra’s ability to facilitate seamless, secure, and compliant financial transactions for businesses operating within and across South Africa.

Fincra Secures South African TPPP License

This development marks a pivotal advancement in Fincra’s mission to build the rails for an integrated Africa by creating the infrastructure to simplify how African businesses pay and get paid globally.

“Securing the TPPP license in South Africa is a significant step toward realising our mission to build the rails for an integrated Africa. It reinforces our commitment to building compliant, reliable infrastructure that powers cross-border trade at scale. We’re excited about the opportunities this opens for businesses across the continent.”

— Ayowole Ayodele, CEO and Co-founder, Fincra.

Fincra’s new capabilities enable businesses across Africa and beyond to integrate directly with South Africa’s core payment systems and banks, offering faster settlement, greater reliability, and compliance with the country’s stringent financial regulations.

IFincra is now better positioned to support a broader range of merchants in industries such as e-commerce, logistics, B2B marketplaces, travel, and more.

“This license strengthens our ability to serve our merchants with faster, more secure, and locally compliant payment options in South Africa. It’s a game-changer for businesses looking to expand or operate in the region, and a strong signal of Fincra’s continued focus on enabling growth for our customers.”

— Emmanuel Babalola, CCGO, Fincra.

For Fincra, this is not just a regulatory achievement, it’s a signal of what’s next for the African payments space.

As Fincra expands across the continent, its growing regulatory footprint and partnerships with Tier-1 banks provide the foundation for scale and innovation.

About Fincra
Fincra is a leading payment infrastructure provider enabling seamless cross-border transactions across Africa.

Fincra empowers businesses, fintechs, and financial institutions to collect payments globally and make payouts locally, all through one powerful API or platform. With Fincra, launching remittance products, automating payroll, and expanding into new African markets becomes effortless. Fincra is building the financial rails that power trade, innovation, and scale across the continent.

Create a free account in 3 minutes at fincra.com

Connect with Fincra on LinkedIn , X(Twitter) Instagram, and Facebook.

BANKING

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises (SMMEs) and Boost Trade

Published

4 months ago

Christopher

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises

The African Development Bank Group (www.AfDB.org) and Standard Bank Group (SBG) on Monday signed a landmark financial agreement to enhance funding for small, medium, and micro enterprises (SMMEs) and expand trade across Africa.

The agreement includes a R3.6 billion investment in a social bond and a $200 million Risk Participation Agreement (RPA) for Standard Bank of South Africa Limited (SBSA). This initiative strengthens Standard Bank’s lending capacity, ensuring greater access to finance for SMMEs, a critical driver of economic growth and job creation in South Africa.

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises

The social bond investment promotes inclusive economic development, particularly for SMMEs with a turnover below R300 million and loan sizes under R40 million. This financing will support up to 4,000 businesses, helping them scale operations, create jobs, and contribute to economic resilience.

Kenny Fihla, Deputy Chief Executive Officer of Standard Bank Group and Chief Executive Officer of SBSA, welcomed the investment, stating: “This landmark partnership strengthens our ability to support SMMEs, the backbone of South Africa’s economy. With approximately 3.2 million SMMEs accounting for 60% of jobs, ensuring access to finance is crucial. This initiative aligns with our Sustainable Finance Framework and our commitment to financial inclusion.”

In addition to the social bond, the $200 million RPA enhances trade finance across Africa, focusing on Low-Income Countries and Transition States. This agreement enables local banks to increase lending by sharing risk, bridging the trade finance gap, and promoting intra-African trade.

African Development Bank and Standard Bank Unite to Support Small, Medium, and Micro Enterprises (SMMEs) and Boost Trade

Leila Mokaddem, Director General for Southern Africa at the African Development Bank, highlighted the broader impact: “This collaboration marks a significant milestone in our long-standing partnership and is a testament to our shared commitment to supporting SMMEs’ growth and enhancing trade finance across Africa. Expanding financial inclusion and trade opportunities empowers businesses to drive economic transformation and regional integration. The Standard Bank Group remains a strategic partner in our shared vision for economic development on the continent.”

This initiative aligns with the African Development Bank’s Ten-Year Strategy (2024–2033), which prioritises industrialisation, regional integration, and improving the quality of life in Africa. It also supports Standard Bank’s Sustainable Finance Framework, reinforcing both institutions’ commitment to fostering green and inclusive growth.

“We are proud of this transaction, demonstrating our shared commitment to sustainable financing. By supporting businesses, we create long-term economic opportunities and financial resilience,” stated Ahmed Attout, Director of the Financial Sector Development Department at the African Development Bank.

Kenny Fihla reaffirmed the significance of the collaboration:

“By providing much-needed capital, we are helping enterprises overcome challenges and thrive. This partnership illustrates the power of collaboration in driving meaningful economic and social change in Africa.”