We live in a world where almost everything can be done online, including managing our finances. Gone are the days of having to visit your bank in person in order to transfer funds, check account balances, or to pay bills. These days we can all enjoy the convenience and flexibility of online banking.
Today we can log into a website or a mobile app and have complete control over our money. In fact, according to a recent report conducted by the Mobile Ecosystem Forum, 61% of people regularly access mobile banking.
Have you yet to hop on the digital banking train? Are you interested in learning more about digital banking? If so, keep reading to learn the ins and outs of managing your money online.
Many of today's most well-known brick and mortar banks offer online banking. But, there are also banks that purely operate online. Ally Bank and CIT are two top exclusively online financial institutions. Because these banks don't run physical locations, they have lower expenses, which enables them to charge fewer fees and tend to offer better interest rates.
Another perk of online-only banks is that they pay higher interest rates on savings, which means you can make more money off the money that you're saving. Online-only banks also offer remote deposit and other new banking technologies.
The Benefits of Digital Banking
There are tons of benefits to using digital banking. No matter if you choose a fully online bank or choose the hybrid approach of using a brick and mortar bank's website and mobile app, there are many perks that you'll enjoy.
1. It's Convenient
One of the biggest and most loved benefits of using digital banking is the convenience that it offers. As long as you have a computer or a mobile device and an internet connection, you have access to digital banking. Most banks and credit unions offer mobile apps that members can use to manage their money. Using these apps you can:
- Check account balances
- Transfer money
- Pay bills
Some apps even let you check your credit score! The convenience is truly endless, and you never have to worry about bank hours or waiting in line for a teller to serve you.
2. Schedule Bill Payments
Have you ever been late on a bill? Tired of wasting checks, envelopes, and stamps in order to pay your monthly bills? With digital banking, you can schedule recurring payments for all of your monthly expenses. The ability to schedule bill payments saves you time and money. Plus you'll never have to worry about late fees as your payments will be entirely automated!
3. Easily Transfer Money
With digital banking not only can you effortlessly transfer money to other accounts, bills, or even a credit card, you can also transfer money into your account. For example, if you use a popular cash back app like Dosh, you can easily link your online bank account to the app so that you can effortlessly transfer money. You can learn about the Dosh app by reading a recent review.
Drawbacks to Be Aware Of Digital Banking
Despite all of the positive aspects of online banking, there are some drawbacks that you'll want to be aware of.
1. Safety Risks
The digital world is convenient, but it also poses all sorts of risks. Many people have avoided digital banking out of fear that their personal information will be stolen and misused, such as in the case of identity theft or stolen funds.
To minimize these risks, most mobile baking apps are fortified with heavy layers of security to prevent hackers and other malicious actors from accessing your private, personal, and financial information.
Recommended: 4 Easy Steps That Protect Your Website From Hackers
For example, most banking apps and websites use encryption to protect your data. These websites and apps also use two-factor authentication, which makes it harder for a hacker to gain access to your account.
2. Technological Issues
We all know that technical issues happen. There are times when websites go down unexpectedly. If this happens to an online banking website, you may have no way to access your money or your accounts. This can be very inconvenient and frustrating, especially if you're banking with an online-only bank. The good news is that more often than not you'll be able to log into the bank’s mobile app, which should allow you access to your accounts.
In today's fast-paced digital world, it only makes sense to partake in digital banking. But, it pays to be aware of the pros and cons so that you can make the best choice for you. No matter if you're switching to an online-only bank or learning how to use a mobile banking app, you'll enjoy the benefits of having access to your accounts at your fingertips.
Sam Makad is a business consultant. He helps small & medium enterprises to grow their businesses and overall ROI. You can follow Sam on Twitter, Facebook, and Linkedin.