Traditional banking offers many useful services but is lacking in areas that offer consumers greater convenience. Taking advantage of personal online banking can add value to people’s finances while saving them time.
How dies online banking differ from traditional banking and what are the benefits users can expect when taking their banking services online?
Easy to Open Account
Opening an account with a brick-and-mortar bank entails a visit to a branch. The customer needs to wait in line to speak with a representative and present the proper documentation. On the other hand, personal online banking allows a user to open a new account in minutes from the comfort of their home.
High Level of Security
One of the most important requirements bank customers look for in respect to their finances is security. In a world where malicious entities are constantly trying to scam people of their money, transaction safety is of growing importance.
Online banking offers multiple layers of protection that keep customer data out of the hands of hackers and other criminals. Encryption and multi-factor authentification ensure that transactions stay away from prying eyes.
Additionally, online banking offers fraud protection. This includes notifications via email or text when suspicious activity is detected.
Convenience
Long waits in bank branches gave way to the convenience of the ATM. The convenience of personal online banking offers an even greater level of convenience. Customers can complete their transactions without leaving their homes.
Timely Bill Payments
People’s busy schedules can often cause them to miss bill payments. Having to keep track of their liabilities and due dates is an extra source of anxiety. With online banking, users can schedule bill payments so that they never suffer overdue penalties.
Ability to make Loan Payments
Late fees are another costly situation that can be avoided with the adoption of online banking.
Money Transfer
Sending money to another bank account is much simpler when conducted via online banking. Whether transferring money domestically or making an international remittance, the user has complete control over the transaction.
Access to Account Data
Physical bank statements are not only wasteful but offer bad actors the opportunity to steal customers’ personal information. Online banking offers digital statements that users can print out as necessary or keep safely on their devices.
24/7 Access Through Use of App
With regards to the added convenience of using an app over visiting a physical bank branch, the experts at SoFi state that a majority of traditional banks require you to visit their office to deposit cash or use an ATM. Also, if you use an ATM that doesn’t belong to their network, they might charge you a fee. You can dodge ATM fees by making deposits and money transfers using a mobile banking app.
Choosing Between Traditional and Online Banking
While traditional banking offers some people a degree of nostalgia, it also gives a false sense of safety. Those interested in choosing the best form of banking for their needs should give more thought to online banking vs traditional banking.
