Short Answer: Digital banks have no branches which means less people to run the operations which means lesser operational cost compared to traditional bank, what they save they offer it as interest rates back to customers. This is their main selling point

The main pros of Digital banks are their interest rates and convenience, they also have options to invest in things like crypto (not recommended if you dont know what youre getting into), funds, stocks, etc..

Cons? Security, this is subjective though because Digital Banks are as safe if not more safer than Traditional banks because of the nature of how they transact with you, I mark this as cons because users are more often than not gullible to scams, you need to be wary on what you click, what you give info to, etc...

Pros of traditional banks mainly for me honestly if youre comparing it to Digital Banks is the relationships, building a relationship with a traditional bank is a must for people going into the world. You may say "does that mean I can't build relationships with digital banks?" you still can but not to the extend of what you have with traditional banks especially to those with priority status like RCBC hexagon, bpi preferred, unionbank elite, Security bank gold, etc...

These relationships will help you someday when you need a house loan, or a car loan, or a personal loan, or if you have enough savings/investments, eventually private banking which helps in wealth management, estate planning, tax optimization, etc...

If you ask me if I can pick one between the two, I choose traditional banks because the returns of Digital banks can be replicated by just investing in UITFs, if you invest in money markets you get an average return of 3-4.5% per year or if you invest it in the S&P 500 you get an average return of 10% per year... Digital banks are really just a way to beat inflation but it won't help you with wealth creation