Functionally, there is not much difference between traditional and online banking. They are the same but the services the bank used to offer offline is now made available online through secured websites and mobile apps.
Online banking eliminates the need for the user to drive to the nearest branch and perform manual transactions and other banking tasks. User can send or receive money from anywhere in the world. The purpose of this post is to present the benefits of online banking.
Here are the five benefits of online banking.
With online banking, the control on your financial transactions is right at your fingertips. You can access your account any time of the day; any day of the year. Also, other banking services such as ordering checkbook online and updating your account information has become so easy. Prior to online banking, people had to arrange an appointment and wait in long queues just to get some basic banking work done. Hence, ease of access is one of the biggest benefits of online banking.
2. Lower overhead costs
Thanks to the latest software technologies, banking has become easy and hassle-free for an average person. It has been equally beneficial for the banks as they are able to cut costs on manual labor and infrastructure. Now a bank can operate globally without having an office in every major city in the world. Hence, most online banks offer more interest rates on a savings account than traditional banks do.
3. Great user experience
With internet banking, you don’t have to rely on the accountant or clerks in the banks. The online software is tested million times with keeping multiple scenarios in mind. 99.99 percent of the time, it is error-free and dependable. Furthermore, you can also generate weekly or monthly reports of all the transactions performed on your account. This is much better than a printed document as you also check the details of a transaction done years ago.
4. Environmentally friendly
Another great benefit of online banking is that it is environment-friendly. No more need for plastic files or documents made from paper. An online database stores all the information of the users using the latest encryption techniques. Secondly, you no longer need to drive all the way to the bank, this puts a brake on carbon emissions from the vehicle. Hence, online banking has been a win-win policy for the bank, user and environment. There is hardly any disadvantage of it.
5. Fast-paced service
To transfer money to someone’s account, all you have to do add them to your list of beneficiaries and send money whenever you want. Transfers usually happen within seconds. Many banks have partnered up with mobile payment service like Venmo. To transfer or receive money with Venmo, you and the other party needs this app on their phone and you both need to be on US soil. PayPal acquired Venmo in 2014 and since then, it’s popularity has grown.
Don’t let the benefits of online banking overwhelm you. There are precautions you need to take in order to carry out safe and secure transactions.