Frequently Asked Questions
Below we have gathered the most frequently asked questions about RankBank, as well as, online banks, neobanks, challenger banks, cryptobanks, mobile banks and the like.
Definitions & Terminology
What is an online bank?
Online banks are banks that operate and provide their products and services to their clients over the Internet. Online banks offer customers almost every service traditionally available through the local branch of a traditional bank including deposits, transfers, as well as online bill payments.
However, this doesn't necessarily mean they only provide banking services over the Internet or that their nature is purely digital. For example, many traditional banks have developed online banking brands, services and platforms to provide their services over the Internet, where many of their core activities are available online but there hasn’t been a full transition to the digital world and many other activities (normally, back-end and back-office activities) are still carried out the traditional way.
What is a digital bank?
Digital banks go a step further than online banks to provide a fully digital experience to their customer, including the complete digitalization of its back-end functions.
With digital banks, the entire banking process is online and begins online. There is no need for online assistance, physical paperwork or face-to-face presence, as the entire banking system and the customer experience is digitalised.
In essence, to some extent, all digital banks are online banks but not all online banks are digital banks.
What is a mobile bank?
A mobile bank is a type of digital bank that offers a full mobile banking experience. This means the entire banking process has been redesigned and developed to happen first and foremost via a native mobile app. Consequently, mobile banks offer all the benefits of any other type of digital banks through a far more portable and personalized experience.
What is a neobank?
A neobank is a type of digital bank that offer a full mobile banking experience (hence, being also a type of mobile bank) generally developed as a startup endeavor, whether it is as a separate entity within the regulatory umbrella and banking license of a larger financial entity or as an independent entity with its own banking license (also known as a "challenger bank").
Thus, a neobank is a mobile bank that may or may not hold a banking license to its name, but in all cases they operate under an official banking license issued by a financial authority and has the duty to comply with the all the regulatory checks and balances, processes, controls and restrictions of said license.
What is a challenger bank?
A "challenger bank" is a type of neobank that holds or is in the process of holding its own banking license issued by a national or international financial authority.
This means these type of banks are a separate banking entity that aims to "challenge" (hence, the name) the business model of all traditional banks, online banks, digital banks and mobile banks, as well as those neobanks built under the regulatory umbrella of larger financial institutions.
Their aim is to rethink and reinvent all banking processes and d their product and service offerings from scratch using the latest technological advances, avoiding the structural, operational and technical pitfalls of previous models, in order to offer a far more affordable, personable, flexible and targeted value proposition to specific customer segments than any of the previously mentioned banking can provide.
What is a cryptobank?
Crypto banks are banking institutions that engage in the standard range of money-related activities of any banking institution like deposits and withdrawals, savings, lending and borrowing, and investing in a wider range of instruments and markets. The main difference with other models comes in how they do it.
Crypto banks have integrated decentralized ledger systems like blockchain and cryptocurrency into some or all of their financial functions, allowing them to effectively provide a higher level of security and anonymity and yet guarantee full regulatory compliance including KYC and AML. Thus, these type of banks operate always within the legality and regulatory approval of a local financial watchdog.
Why should you consider one of these types of banks?
The benefits of these types of banks versus more traditional models are vast and varied from country to country and company to company. However, most of them have in common one or more of the following factors:
- Easier and faster account creation.
- Lower costs: lower setup costs, lower interests, lower maintenance fees, etc.
- Hassles-free and overcharge-free international payments and transactions.
- Better and more personalized user experience and design
- State-of-the-art technology and features
- More personable support
Do these types of banks offer human support?
Most online banks, digital banks, challenger banks, neobanks, mobile banks and/or crypto banks focus on leveraging machine-learning algorithms, artificial intelligence technology and automation software to provide more efficient and more effective service to their clients. However, this does not mean there are no people behind each and everyone of them.
In fact, almost every one of them offer their customers quick, effective and friendly support via telephone, livechat and/or email, as well as through community forums. Nonetheless, you will most likely not find human advisors sitting around in branches, visiting you at home or at the office, or waking you up from a nap to try to up-sell you other products and services over the phone.
What happens if a one of these banks goes bust?
All the banks and banking services featured in RankBank are regulated and licensed by one or more reputed local and/or international financial watchdog/s.
As regulated and licensed services most of them have to abide by the same rules and regulations as other banks and banking services in the countries in which they operate in. This means that most, but not all, are protected by fund protection schemes like the Financial Services Compensation Scheme (FSCS) in the United Kingdom, for example (In the case of this example, that means if the bank were to go bust, you would be covered for up to £85,000 if you have FSCS protection).
That being said, please do always double-check with your preferred bank of your choice how would your funds be protected in the event of bankruptcy and how would that compare to other banks in your country.
What is RankBank?
RankBank is a platform and web application design to help you choose the right online bank for your needs and circumstances.
Whether you are a business owner, an employee of a big corporation, a freelancer, a sole-trader, a remote worker, an avid traveler, a student or a parent with kids, RankBank will help you find the right bank account for you.
RankBank is available in English* and has already classified and ranked the best online banks in over 40 countries**.
NOTES: *More languages coming soon, **More countries coming soon.
How does RankBank make money?
RankBank is a free service for its users, including its comparison tools and collection of articles, reports, news, and reviews.
RankBank may receive compensation from some financial companies seen on our website.
Most frequently, these compensations come in the form of a referral fee when one of the users that visits RankBank clicks to visit the website of one of our partners, applies to open an account with them and/or successfully buys and receives a financial product or service from them.
While it would not be the only factor taken into account, the conversion rate of these type of interactions and the volume of the compensations received from each of these partners may influence the ranking of each of them in RankBank's website and comparison tools, as they represent the most powerful proxy to our users' satisfaction with the product and service offering of each of these partners.
Other factors taken into account will be app reviews, languages supported by the partner, their product and service offerings, the reviews on other reputed and well-renown sites, etc.
The articles, reports, news, and reviews referenced or published in this site are done by independent writers who do not receive directions or compensation from our partners.