These days, nearly every aspect of our daily lives can be conducted online, whether it’s shopping, socializing, or working. This is one of the main reasons why so many people are now considering switching to a bank that provides better online services. Some banks are even completely online, with no brick-and-mortar existence!
If you’re thinking about switching banks and online banking is a feature you’re intrigued by, then take a look at our pros and cons list below. By finding out whether your chosen financial service has all the relevant cybersecurity protocols in place to keep your information safe and secure (check out somewhere like Radware for more information), to how convenient they are to use, we’ll give you a rough idea as to whether a bank with online banking services or an online bank is the right move for you.
The Pros
- They are Convenient and Easy to Use
With just about all of us leading busy lives, convenience is key! For many, there isn’t necessarily time to visit the bank in person in order to make a basic transactions. Online banking is easy to use, keeps everything in one place, and also offers quick access when you’re on the move so that you can check out your banking details no matter where you are – even if you’re overseas! In just a matter of minutes, you can have deposited money, checked out a bank statement, or updated your information.
- Fees are often less
The truth of the matter is that many banks, especially the big ones, will charge you for just about everything – even a basic checking account. For example, Bank of America banking fees are quite substantial when you compare them to online banks or even just smaller banks with good online services. Do your research and scope out online banks that aren’t in the game to charge you an arm and a leg for every online service.
- They Have Better Services
There are so many tools and services with online banking to make things faster, easier, and more efficient. For example, the loan calculator lets you know whether you’re eligible and what your repayment period looks like. The same goes for the savvy credit card checker. There’s also usually the option for financial planning and forecasting that can keep your money organised and will ensure that you remain within your budget.
The Cons
- The Relationship is Lost
One of the drawbacks to online banking is that the customer tends to lose their personal relationship with the bank and their staff. Although there are some transactions that are ideal to be carried out in person, there’s less need to take a visit, which can dissolve the personal touch. While this isn’t important to everyone, there can be value in a good working relationship with a physical bank.
- They Aren’t Always Secure
A big risk with anything online is security. While banks are well-known for having some pretty incredibly safety and security measures in place, online hacking and theft can still happen, which causes a scare for some customers. There is always a danger to having information online, and while this may be less so with banks, it may be something to keep in mind.
To Conclude
We hope that this article has helped you understand more about the online banking process as well as the advantages and disadvantages that come with it. While online banking is incredibly convenient and offers more diverse services, you aren’t always guaranteed security and you may want a more personal relationship with something as important as your finances.
There is little doubt that cyber security is important when banking online, and knowing the whats and what-nots can help immensely. For example, having strong passwords can enhance security, lowering the risk of being hacked. Similarly, using a VPN when connecting to sites can add an extra layer of security. In this connection, you may want to educate yourself about the various protocols used by VPNs such as Open VPN or Wireguard. If you are wondering “what is wireguard?” it is simply an easy-to-access protocol which can perform better than most others.
Wrapping up, online banking often comes with the advantage of flexibility and ease of use. Banks provide better services online and often charge less. On the downside, customers may lose relationships with the staff and can be prone to cyber attacks. In this sense, it is advisable to become familiar with various security measures and choose one according to your preferences. Overall though, a bank with strong online banking services is the way of the future, so just do your research and get banking!
