Are you frustrated with the state of banking in the US today?

We wouldn’t blame you if you’ve thought about withdrawing all your cash and storing it under your mattress. But before you do, you should consider using a virtual bank as an alternative.

While virtual banking has been around for a few years, they still only cater to a niche consumer. However, online virtual banks have advantages for the average consumer and are often superior to traditional banks.

Here’s what you need to know about virtual bank accounts:

How a Virtual Bank Works

While traditional banks offer online services, virtual banks work entirely through an app and don’t have any physical branches.

As a result, all your money is electronic. However, a virtual bank will partner with most banks around the world. As a result, you’ll have no problem withdrawing cash from most ATMs. The one disadvantage is that you might have to pay high ATM fees.

However, most consumers prefer to use virtual banks because they don’t care to operate using cash. Many consumers prefer to use these virtual debit cards to make their payments.

Virtual banks often operate in multiple countries to suit their customers. So, if a virtual bank is based in Germany, it will cater to EU customers. If an American wishes to use this virtual bank, they’ll use the American branch of this virtual bank.

Why Use a Virtual Bank?

You might wonder why you should bother using a virtual bank with all its inherent disadvantages. As digital services increase, using virtual bank accounts will be crucial for many everyday consumers and entrepreneurs.

For example, let’s suppose you work as a freelancer. In the era of remote work, you might collaborate with clients in different countries.

You’ll have to find a way to request payments and send payments as easily as possible. While this is possible with traditional banks, virtual banks make the process much easier.

They focus on sending money internationally as fast as possible. They also have far lower fees than traditional banks.

If you travel often, you’ll also have to deal with multiple currencies. With a virtual bank, you can convert different currencies within the app. For example, you can receive USD from your American client.

Then, within your virtual bank account, you can convert this amount to Euros to pay for your co-working space membership in Spain!

These are some of the major advantages of using a virtual bank account and why you should consider it in the future.

Open Your Virtual Bank Account!

Now that you know the benefits of a virtual bank you can determine whether you should open an account.

A virtual bank operates solely via an app. You’ll still be able to withdraw cash from ATMs but you might have to expect high fees. However, virtual banks work well for international payments and currency conversions.

A virtual bank will be based in multiple countries so it’s perfect for clients who travel. As the world becomes more digital, a virtual bank will become crucial for the average consumer.

You can read even more about using a virtual bank on our blog.