Traditional Banks VS P2P Networks

Traditional Banking vs. Peer-to-Peer (P2P) Networks

Peer-to-Peer (P2P) payment apps like Venmo have gained popularity in recent years, offering a convenient way to send and receive money. According to NerdWallet, 84% of consumers use some form of P2P for cash transactions. However, when it comes to security, reliability, and overall financial health, traditional bank accounts still offer services that P2P apps can’t match.

Financial trends show that some younger consumers have adopted P2P apps as their primary source for managing their finances. While the ability to send and receive money is convenient, P2P apps are missing some of the fundamental aspects that are standard with banking at a credit union. Let’s explore the four advantages that an account from KEMBA provides that P2P platforms may not feature.

1. Security and Protection

• Deposit Insurance: Credit union accounts are insured by the NCUA and traditional banks are insured by the FDIC, protecting your funds up to $250,000 in the case of a bank failure. P2P apps, on the other hand, may not offer the same level of protection, which can leave your funds vulnerable. If you do use P2P to receive payments, make sure you have a connected bank account or debit card to transfer funds and protect your money. 
• Robust Security Measures: Banks and credit unions have invested heavily in security measures to protect customer data and prevent fraud. P2P apps, while improving, may still be more vulnerable to cyber threats. Learn how to keep your data and account safe online when using P2P apps.
  

2. Comprehensive Financial Services

• Beyond Payments: Banks and credit unions offer a wide range of financial services, including savings accounts, checking accounts, loans, credit cards and investment options including the ability to include your P2P accounts. P2P apps are primarily focused on payment transactions.
• Customer Service: Banks and credit unions typically have extensive customer service networks, including access to human beings, and resources to assist you with any banking needs. P2P apps may have limited customer support options.
  

3. Convenience and Accessibility

• Branch Network: Banks and credit unions often have a vast network of branches. With shared branching options, you can access banking services at network banks or credit unions, making it easy to access your funds and receive personalized assistance. While P2P apps offer convenience for mobile transactions, they may not provide the same level of accessibility.
• ATM Network: Banks and credit unions typically have extensive ATM networks, allowing you to withdraw cash easily and conveniently. P2P apps may have limited ATM access, withdrawal limits, or may have fees associated with transfers to debit or credit cards.