Banking Online: Is It Right For You?

Many consumers these days choose to bank exclusively online rather than make an appearance at their local branch for money transactions. The reason most people choose the electronic route is because it’s more convenient. A few technophobes may be holding out due to fears of identity theft, but most of those fears are unfounded.

The Pros

Banking online is convenient. You can have access to your account 24/7 and with most brick and mortar banks there are a multitude of services that are offered electronically including money transfers and bill payments. Personal financial experts agree that automating bill payments is an excellent way to boost credit and maintain a positive financial situation because it ensures that bills are paid on time each month. They also agree that automating your savings plan directly from your payroll checks helps increase the rate and amount of savings. This follows the cliché of what you don’t see, you don’t spend. Online banking allows consumers to perform many functions they may not otherwise get much time to do in person at their local branch office. Another plus for online banking is the ease of keeping tabs on your transactions. For many, keeping a balanced checkbook is difficult. Banking online allows you to see what is transpiring in your account in almost-real time.

The Cons

Security is the chief concern for those who choose not to go electronic. Consumers who are worried about Internet fraud and activity will likely stick to what they know. The reality is major financial institutions are adamant about security measures and the protection of customer information. Their websites are checked thoroughly for security breeches. Still, a number of banking customers prefer to avoid the Internet altogether. There is also a group that distances themselves from electronic banking because of the impersonal nature of doing business with the bank. They prefer that personal touch when it comes to customer service.

The Trend

Banking online may not be everyone’s first choice but it is important to note that there are some banking institutions that exist solely online and offer considerable better interest rates and lower costs than traditional brick and mortar business. As many banks are increasing fees and limiting perks, online banks have been growing their customer base rapidly in response to the higher costs of having bank accounts at other financial institutions.

If you are not sure that online banking is the right choice for you, consult with your local branch manager and express your concerns about safety. If you are not yet banking electronically you may be missing out on perks you will no longer find at your current bank and you may be missing opportunities to streamline your personal finances.