If you’re still writing paper checks, waiting in line at the bank, or meeting with banking associates in person in 2021 and beyond, you’re missing out.
In recent years, digital banking has exploded in popularity, with research suggesting that nearly 70% of people in the UK use mobile banking, with 86% using it as their primary banking channel. If you’ve noticed this growing trend, it may leave you wondering, “Should I start digital banking?”
If you’re unsure about making the leap, it’s time to learn more about the benefits of digital banking—and why you should take advantage of this new technology.
1. Simplified Onboarding
Online banking makes the onboarding process much easier for new customers. With a virtual process guided by the latest technology, applicants can provide required documents to open an account in no time at all—with no need to spend time on a face-to-face meeting with a bank associate.
Of course, it’s still important, both now and whenever you access your digital bank account, to follow through with basic online security practices. Be sure to look for the lock symbol in the address bar, avoid using public WiFi, and use a strong password to keep your data safe.
2. Higher Interest Rates and Lower Fees
This benefit, of course, can vary from bank to bank.
However, in general, you’ll find that online bank accounts tend to have higher interest rates than traditional alternatives. A high-yield online checking account, then, can earn you a little more in interest per year than an account with a traditional bank.
One other money-saving perk is the lower fees. Because online banking demands less overhead than the brick-and-mortar alternative, many online banks pass those savings along to customers. This means that you’ll find lower (or no) monthly maintenance fees, minimum account balances, and even transaction fees, depending on the bank you use.
3. 24/7 Banking From Anywhere
There are few things most of us hate more than a lengthy queue—especially when we only need to take care of a quick transaction.
With digital banking, it’s possible to take care of banking tasks from anywhere and at any time, which opens up a world of convenience. Most banks offer mobile apps that allow you to access your accounts even when you’re out and about, allowing you to double-check your transactions in real time. What’s more, your easy banking pairs well with any budgeting apps you already use for extra convenience.
4. Easy Check Deposits
Most mobile banking apps will save you the trouble of heading to a brick-and-mortar bank each time you need to cash a check. The process is simple: using the camera on your phone, you’ll need to take pictures of the front and back of the check. Certain banks may have additional requirements when you cash checks online, like writing a specific phrase in addition to endorsing the back of the check, but the process remains fast and easy no matter where you bank.
5. Online Bill Pay
For easier bill pay services, digital banking is a must. With most online banks, clients have the opportunity to set up payees in their account, allowing you to send a payment to the company or client in question whenever you need to. This ensures that you no longer have to worry about checks getting lost in the mail!
In addition, automation can make regular billing tasks even easier. Setting up recurring automatic bill payments can help you stay on top of your cash flow for regular expenses, like car payments or subscription services.
When needed, you can also authorize providers to automatically remove money from your account when your bill is due. This can be helpful for providers like electric companies or mortgage lenders. To do this, you will need to provide the company with your bank’s routing number as well as the checking number of your account.
6. See Transactions at a Glance
When you bank online, all of your past transactions are easy to access and view at a glance. This makes it more convenient to check your account history on a regular basis, especially at a time when many of us worry about unauthorized transactions and identity theft.
If you are more accustomed to traditional banking, you may also catch sight of a feature exclusive to virtual banking: pending transactions. With pending transactions, you’ll be able to see transactions that a merchant hasn’t yet processed. This helps you see and understand the full context of your spending, even when a charge hasn’t been authorized yet.
7. Transfer Money With Ease
Whether you’re transferring money to your own account or paying back a friend for those concert tickets, money transfers are easy when you bank online.
Instead of visiting the bank in person, you can start an online transfer and input the details of the account you’re sending money to. Once your request is complete, the transfer may take up to three days to move to the receiver’s account, though it’s often far less if the receiver has an account at the same bank.
Harness the Power of Digital Banking
Given these benefits, it’s not hard to see why digital banking is poised to grow in popularity in the next few years. With added convenience and quick transactions, it’s easier than ever to make the most of your money with an online bank. Consider opening an account today to see the difference it makes!
For more of the helpful banking and finance guides you need, CFI.co has you covered. Check out our related posts for more insights.
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