Commercialisation of technology has brought new inventions, making jobs easier with internet. One of the most useful inventions of the early 90s is that banks found ways to deliver their services to their customers online – beginning the chapter of online banking.
What good did this advance in technology do for banks and their users? They found a way to deliver their services without even having physical branches and offices – saving tons of money, energy, and manual labour.
Therefore, online banking took over traditional banking. Now let’s get deeper into how online banking works.
What is online banking?
Online banking allows users to manage their bank accounts using their personal mobile phone or computer anywhere.
Furthermore, everything that one can do using traditional banking services can be done using the online banking system. These include paying bills, transfer of funds and depositing.
Moreover, online banking allows you to send and receive money in your home without even meeting a banker face to face.
Although you may feel the presence of traditional banks where ever you go in the world, online banking still offers more advantages than traditional banks.
Pros of Online Banking
As there is no cost of infrastructure and office online banks have to bear, it allows higher pay rates or annual percentage yields (APYs) on savings. Higher rates can also increase to 1% or even 2% more than what you can get in traditional banks.
In contrast, traditional banks also charge a wide range of fees for different activities like using ATMs and other office usage machinery. With online banking, you do not have to pay these fees.
Although traditional banks also have their own online services and applications for the customers nowadays, they still cannot match up to the bar that online banking has set.
In addition, online banking also have a huge number of satisfied customers.
Cons of Online Banking
A traditional bank offers you the chance to get to know the staff of your branch. The staff is hired to help users with banking services like opening up a new account, depositing or cashing a cheque. A branch manager is present at each bank area branch to help with bigger issues.
However, you cannot experience this in online banking as there is no staff you get to know, and you have to do everything yourself. You can’t head toward the branch closest to you and get your problems fixed.
Moreover, international banking with online banking is also quite a difficult task.
There are very limited ATMs for an online banking customer. Even though you may not need ATMs often with online banking, you may find difficulty in finding ATMs in some cases you do need them.
Another reason why some people prefer traditional banking is because they offer loyalty and special services like free-of-cost financial and investment advice and better rates to loyal customers.
How does Online Banking work?
- Sign up for online banking
- Log in
- Perform all your financial transactions instantly
- You will either get a text or an email or both showing the transaction details
If you need customer service support online or by phone, you can call them at their helpline number, and they will assist you in your technical difficulties and other issues.