As a society, our minds are constantly consuming information. According to Forbes, Americans spend over 1,300 hours on social media a year. Given these statistics, it makes sense that 53% of Americans say they get their news from social media, according to Pew Research. Although social media is our primary outlet, does that make everything it says true?
That’s a question we can all agree on with a resounding NO. Sometimes, it’s hard to decipher the truth from the lies, so always consult the experts. There’s no better time than now for us, VIVA First, to share our expertise amidst a recent TikTok trend discouraging digital banking. As your digital bank, let’s address the misleading information head-on and correct circulating untruths regarding digital banking.
Flagged for misinformation:
- “In a recession, if banks fail you will lose your money with a digital bank.”
This statement is incorrect for banks with FDIC insurance, a government-backed program that protects depositor assets at member banks. That is why it is important to deposit your money with an insured entity. All VIVA First accounts are FDIC insured through Spur Security Bank which guarantees the protection of funds up to $250,000, in case of a bank failure or economic downturn. At VIVA First, we are committed to sound financial and banking practices. You can read more about our commitment to keep your money safe through FDIC insurance here.
- “Digital banks mine and sell data.”
VIVA First does not engage in this type of practice. Our innovative app features are solely for our users in an effort to enhance their experience. In fact, protecting your personal and financial information is our top priority.
- “Neobanks are technology companies and not banks, so they can withhold your money for any duration of time.”
Digital banks are regulated entities just as traditional banks are, which means digital banks must adhere to the same regulatory standards that all banking institutions are held accountable for.
- “Digital banks abruptly terminate user relationships.”
All financial institutions have disclosure agreements with stipulations including when an account may be closed. In many instances, misuse of account funds or suspicious account activity constitutes a termination of the banking relationship.
The truth of the matter is you never know unless you ask. At VIVA First, we’re always happy to answer your questions and address possible concerns that come to mind. Don’t let the circulating misinformation steer you from the convenience and user-focused experience that VIVA First has to offer. Feel free to utilize our expertise, we are here for you and all your banking needs.
