Settling Everyone’s Big Question: Are Digital Banking Solutions Safe?

September 1, 2021
by the
NextPay Team

Solving Legacy Banking Problems

Most of us are scared of things we cannot see. Not being able to pay your bills, the COVID-19 virus, and transferring money online among others. However, putting all of those invisible factors together in one sentence can give you one great insight. However, like how a vaccine is to COVID-19, innovations in digital banking have found solutions to the ghost of legacy banking practices— even during the pandemic.

Despite this, many are still inclined to ask: are digital banking solutions safe? Some of the best digital banks and financial technology (fintech) startups have already set up shop in the Philippines. Yet there are a few concerns that still keep a lot of folks up at night. Aside from security risks, data breaches, and cybercrimes, not understanding how the technology works can be a major deterrent.

In this article, we’ll answer the most pressing questions that people in business have regarding the safety of digital banking solutions. After all, It’s high time we finally settle how fintech innovation can help boost your business finance.

is digital banking safe

What's to Love with Online Banking? A LOT.

Let’s backtrack to traditional banking for a bit. You go inside the bank and ask for assistance from the teller. She asks for your IDs and lets you accomplish several forms. You also provide a couple of specimen signatures for verification and authorization. On average, opening a bank account would take an entire day or more. Or at least that’s how it goes back in the day. Thanks to the birth of online banking, it's hassle-free these days.

Through online banking, transactions are safer and money transfers can reach their destinations faster. Most fintech startups also accompany their services with apps and eWallets to streamline various financial processes online. People can now open digital banking accounts via these apps and websites within minutes while making everything easier, faster, and safer.

With NextPay, you get to track and manage your finances real-time at affordable costs because of our pay-per-use model. This means that you don’t need to split hairs over maintaining balances like you used to with traditional banks.

is digital banking safe against identity theft

Are Digital Banks Safe from Identity Theft?

One of the top concerns that people have about digital banking is identity theft. The National Bureau of Investigation (NBI) office in Dagupan had recently detected nearly 30 cases of identity theft per month since the pandemic. The rise was attributed to individuals posting personal information on social media which then gives cyber thieves the opportunity to hack pages and accounts on their behalf and swindle others. Ouch.

Such prevalent cases prompt many to ask if digital banking solutions can minimize the risks that go with identity theft. While the cases in Dagupan are more user-oriented errors rather than digital flaws, the best digital banking solutions in the country continue to optimize their authentication protocols.

At NextPay, one of our main priorities is establishing efficient identity checks. We ask clients to submit valid government-issued IDs plus a selfie as part of our ‘know your customer’ or the e-KYC verification process.

This essential practice strengthens authentication while providing a seamless risk profiling process. For businesses, e-KYC also serves as data factors for authorizations when it comes to safer account access and transactions.

is digital banking safe for transactions

Transaction Security: Can someone else make transactions for me?

We understand how worrisome it can be once you lose your mobile phone with all your financial data stored on its hard drive.

Of course, the first thing you’ll have to do is lock your phone remotely via your provider’s security features. After that, we can help you access your accounts on a separate device via a two-factor authentication process. This process involves entering an assigned password, and a one-time generated code sent via email or SMS to complete each log-in.

is digital banking safe for my business

How do I choose the best banking solution for my business?

While there are many digital banking solutions in the Philippines, only a few can offer the security essentials you need to reduce tech problems and money risks.

With NextPay, you won’t have to look further for the right digital bank that can help you track and manage your cash flow safely. All of our security features ensure that your transactions and activities are logged in and digitally recorded.

From streamlining processes that allow faster transfers, payments, and collection to do away with identity theft, we’ve got you covered at NextPay.

Learn more about our money management solutions by visiting us at NextPay.

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