Online banking offers convenience and better rates. Each day, we are becoming more and more connected on the internet. Many of the services that we once knew as being exclusively physical and offline have now moved to the internet. There are many benefits to this, as seen in the case of online banking. Banking is a task that many once considered to be only valid if done in person. This way of thinking has since changed, and a majority of people at least use the online banking solution that their physical bank provides them some of the time, if not exclusively. However, if you are new to online banking, you might be wondering about what some of the best benefits are so that you can decide whether it is the right option for you. Before addressing that, let’s cover some basic concepts to give you an idea of what to expect.
The Top Line
- Online banking is becoming increasingly common as banks and bankers wake up to the benefits of handling their finances online.
- Online banking may not be for everyone, but it is definitely growing in popularity. There are both benefits and drawbacks to using an online banking solution.
- Online banking may refer to banks that operate exclusively online or banks that offer both physical locations and online banking solutions, such as Chase and Wells Fargo.
- Overall, online banking is seen as the best solution because it lowers overhead and provides the most utility to the consumer.
Things to Love About Online Banking
Though you might be wary about switching to an online banking service because you have always liked the security of an in-person banking location, there really is a lot to love about using an online banking service. Online banking services were created to meet the unique needs of individuals and provide a more streamlined service to those in need of banking partners. Here are just some of the things that are loved about online banking solutions.
Lower Fees and Better Lending Rates
What many see as the best benefit of online banks is the fact that using an online bank definitely saves you money. When you think about it, it makes a lot of sense. Physical banks might provide you with the peace of mind of a physical location, but what they also have to take into account is the overhead required to have a physical location. This means rent, employees, utilities, and other obstacles to overcome just to put a building in a location that might not serve that many people.
An online bank has the benefit of extremely affordable scaling. This means that they can serve millions of people right from their website without having to put buildings in towns all across America. The savings from this is what allows them to offer you better interest rates on your loans and checking accounts as well as lower fees on the accounts that you have with them. If you want to save money, then online banking is assuredly the way to go.
Easy Online Functionality
Many people simply prefer an online experience. When you bank online, you can cash checks, complete transfers, set up direct deposits, and even open other accounts such as retirement and savings accounts all from your computer or phone. While it might feel good to have a physical location in your town, the convenience of being able to cash checks and complete transfers and even open accounts is unmatched. With an online banking partner, you’ll be able to save time and stop having to go to the bank for everything that you need to do to manage your money.
See More Analytics
Another great benefit of working with an online banking partner is that generally, online banks provide you with much more information about your spending habits and other analytics with your banking. You can set up alerts to remind you about spending, when your account balance is low, or bill paying. You can also enjoy access to other analytics that can help you optimize your banking experience and financial life. With the help of a dashboard that tells you more about your financial life, you can take full control of your spending habits and banking accounts. Another great aspect of online banking is that you can control your accounts with net worth trackers and other services such as brokerages to make it as easy as possible to get an overview of your finances.
Improving Customer Service
When people think about online banks, they generally are worried about the quality of the customer service that they are going to receive. With early online banking solutions, this was indeed a struggle. When compared with the experience of talking with a person face to face, online banking could hardly compare. However, what many people don’t know is that this has been changing over the past few years. As online banking companies learn more and more about what their customers want and need, they have been much better about providing customer service in a way that makes everything easier. Many online banking solutions are able to offer speedy live chats with real people as well as phone support. There is no longer any reason to be worried about the quality of customer support that you receive from online banking solutions.
Applications and Dashboards
Another great thing about online banking solutions is that many of them have mobile applications and comprehensive dashboards that enable you to take your financial life anywhere that you go. With your online banking solution on your phone, you can take it as you travel around the world and still have access to the features that you will need. For many online banks, this also means that you can cash a check right from your phone, eliminating the need to ever even visit a bank or physical location. Anything that you have been able to do in the past in a physical bank you will now be able to do right from your phone from a handy mobile app that was designed specifically to make it easy.