Brick-and-mortar banks still dominate the financial sector, but online banks are making a strong emergence because they offer outstanding benefits to their customers. Online-only banks are attractive because they offer both convenience and better interest rates, among other perks. Here are the top reasons why you should consider switching to an online bank.
Advantages of Internet Banking
- Because they don’t have costs associated with maintaining physical branches and paperwork, online banks can offer better interest rates.
- Fewer fees for banking services – many online banks don’t charge for overdrafts or taking money out of an ATM.
- Banking around the clock – since they don’t maintain physical branches, you can access your online banking account and your money 24/7.
- Real-time balance details – you can see your account statements whenever you want as online banks keep your information stored safely in the cloud and make it available to you within a few clicks.
- No waiting in line – your financial information is accessible in seconds, as soon as you insert your username and password. You will not waste time waiting in line to have a clerk check it for you.
- No hassle when you move – you don’t need to change your bank or to find another branch close to your home since all your financial information resides in the cloud.
- Automate payments – online banks allow you to automate recurring payments like phone bills, electricity bills, online subscriptions, and so on.
- Good technology – you can access your account from your PC or your smart devices with an app. You can even synchronise your online bank account with third party services for shopping and payments.
- Instant alerts – online banks have the technology to alert you about changes to your financial situation (for example, when you receive a payment or if your account has been compromised) in real-time.
Disadvantages of e-Banking
- Lack of face-to-face support. If a problem occurs, you need to count on online support or phone support, which can be difficult and frustrating if the customer support rep who answers is not knowledgeable and friendly.
- Website crashes – when online banks have issues with their servers and their websites go down, you may need to wait a long time till they fix the problem, and customer support will not be able to help you either.
- Security concerns – hacking and identity theft are serious concerns for customers of online banks. The sites and apps are usually secure, but no system is bulletproof. Protect your login credentials and change your password often.
The advantages override the list of disadvantages, and online banking is gaining momentum. Some of the best online banks include CIT Bank, Ally, Discover Bank, and Axos Bank. Many traditional banks offer incentives for online banking as well, so you may want to check with them too if you consider switching to e-Banking.