Digital banking

Overview

More and more financial services can now be accessed at the tap of a screen – from setting up a savings pot to applying for a loan or splitting bills with friends. This convenience can make it easier to stay on top of our money and feel more in control of day-to-day financial decisions.  

But as helpful as these digital tools can be, they also come with risks. It’s important to understand how financial technology (fintech) providers operate, what protections apply and where extra care may be needed. With new products and apps appearing all the time, taking a moment to pause, compare options and check the small print can help ensure we’re using these services safely and confidently. 

Understanding fintech services in Ireland

Fintech simply means using technology to deliver financial services – things like banking, payments, saving or insurance – through digital tools such as apps or online platforms. Many of these services have become familiar parts of everyday life, from opening an account on your phone to paying for something with your digital wallet.  

In Ireland, you’ll find different kinds of digital‑only providers offering these services. Some are full banks, while others are payment or e‑money institutions offering similar day-to-day payment features without being traditional banks. They don’t have branches, and you manage everything through an app, including your debit card and payment services.  

These providers must follow important consumer protection rules, but the way your money is protected can differ depending on the type of provider you choose. For example, money held with a licensed digital bank is covered by the Deposit Guarantee Scheme – up to €100,000 per person, per bank – while funds held with payment or e‑money institutions are protected through " safeguarding" rules instead.  

Fintech services can offer speed, convenience and more choice, but they also work differently from traditional banking. Understanding these differences – and knowing which rules apply – can help you decide whether digital‑only finance is the right fit for you before you explore individual providers. 

How digital-only accounts work

Digital-only accounts are designed to be opened and managed entirely online, usually through a mobile app. The process is quick and straightforward, but it’s helpful to know what to expect and how these accounts operate once you’re set up. 

Opening an account

To open a digital‑only account, you typically: 

• Enter your personal details through the app
• Upload proof of identity (such as a passport, national ID or driving licence)
• Upload proof of address (for example, a recent utility bill, rental agreement or bank statement)
• Complete verification steps within the app

This digital "onboarding" process is now common across fintech providers and allows accounts to be opened without visiting a branch.  

Using your account day-to-day

Once your account is active, your phone becomes the main way you manage your money. You can check your balance, view transactions and get spending alerts in real time. Many providers also offer additional features, such as: 

• Digital wallets for easy payments
• Debit cards (physical or virtual) 
• International payments
• Currency exchange tools

Security and how your account is protected

Fintech providers must follow rules designed to keep your money and information safe. It’s worth checking what security features your provider uses and how your personal data will be protected. 

One protection you’ll come across regularly is Strong Customer Authentication (SCA). SCA is a security step required under European law. It helps make sure it’s really you who is accessing your account or making a payment. You may be asked to confirm your identity using two of the following: 

• Something you know: a password or PIN 
• Something you have: your phone or a card reader 
• Something you are: your fingerprint or face scan 

You might see SCA when logging in, approving a payment or confirming certain actions in your app. It only takes a moment, and it’s there to reduce the risk of fraud or unauthorised access. 

Before you go digital

A digital‑only account can be handy if you like managing your money on your phone and want quick access to everyday banking features. But before you dive in, it helps to think about two things: whether this type of account suits the way you manage your money and whether the provider itself is a good match for you. Look at whether the account offers good value, includes the services you need and provides an app and customer support you feel confident using. 

Here are some things to watch out for: 

• Quick setup can lead to quick decisions: Opening a digital-only account is often very fast, which can make it tempting to sign up without fully considering the risks and benefits. Taking a moment to think things through before choosing a provider or account can help you avoid issues later. 
• Lack of face‑to‑face support: Digital‑only banks do not have branches, so you won’t be able to speak to someone in person if something goes wrong. Ask yourself whether you’re comfortable dealing with customer service through chat, email or phone only, especially during stressful situations like disputed payments or account access problems. 
• Different rules for complaints: Not all fintech providers are regulated in Ireland. If the provider is authorised in another EU country, complaints may need to be handled by that country’s dispute‑resolution service rather than the Financial Services and Pensions Ombudsman in Ireland. This can sometimes make resolving issues feel more complicated or slower.  
• Checking who regulates the provider: It’s important to make sure the fintech is authorised or registered. You can do this using the Central Bank of Ireland’s Register of Authorised Firms, which lists regulated financial service providers.  
• Potential security risks: Because everything is done through a device, digital‑only accounts and apps can be targets for scams or fraud. It’s worth taking time to understand what security features the provider uses – such as Strong Customer Authentication – and what support you can expect if you report suspicious activity.  
• Services may vary between providers: Some accounts offer helpful features such as budgeting tools, international payments or the ability to send and receive money to people, shops or businesses in other European countries, using a shared payments system that works much like transferring money within Ireland (this is known as a SEPA transfer). Others may not include all these options. Checking these details early can help you avoid surprises later on, as fees, limits and foreign‑currency charges can also differ from what you may be used to. 
• More complex products require extra care: Some fintech apps give access to crypto assets. Even though some crypto is now regulated across the European Union, the risks remain high, and crypto assets are not covered by any investor compensation scheme. If a provider fails, there is no safety net to recover your crypto‑assets. Make sure you understand the risks, your responsibilities – including any tax you may need to pay on money you earn – and how these services work before getting involved.