With the rise of the internet, almost everything has become available online. From emailing to shopping to apartment hunting, the internet seems to have pervaded every aspect of life. Therefore it was only a matter of time before banking too went digital. The result of this change is that online banking has become a way of life today.
The Advantages of Internet Banking
There are many reasons why online banking has emerged as a staple of daily life. It's fast, safe and convenient. It also means that there is no more need to travel to your nearest bank for basic services any longer. Certain banks may have offers for online customers, so now is a good time to review if your current account is right for you. Here are some of the other advantages that banking online offers:
- 24/7 Services: Banking online means that the banks no longer need to keep their branches open around the clock. That means you can simply login to the website of the bank and get what you?re looking for. Self-service is the key here.
- Monthly Statements: With online banking there is no need to visit the bank, call up the branch, or wait for a financial statement to come in the mail. All you have to do is login online and download a copy of your statement. This adds a great deal of convenience for those who are hard pressed for time. Similarly, if you need your statement to prove income when you're looking to rent an apartment or something, you no longer need to wait for the bank to send you a statement. It'll always be available online.
- Cost Effective: Internet banking is very cost effective. It does away with the need to have too many personnel or clerical staff around in the bank. It also raises efficiency in that many customers can be served all at the same time.
- Paperless: Internet accounts allow all transactions to be done without using paper. This saves tremendous amounts of paper, and thus contributes to significant savings on the bank's part. Plus it also aids in being environment friendly.
- Transfer of Funds: With online banking there is no need to visit your bank to ask them to transfer funds from one account to another. What's more, with internet banking you can even transfer funds across countries and continents! You can also schedule monthly payments to be made out of your account automatically.
- Loan Applications: Through banking on the internet any customer can apply for a loan without even having to visit their local branch. You can sell and buy stocks and shares, open a new account and even close an existing account, all with very little effort on your part.
- Geographical Convenience: With internet banking, it doesn't matter where you're located. You could be in any part of the globe and still be able to check on any financial transaction online.
- Asset Management: Banking through the internet has made the effective management of all your assets possible. Most of today's banks provide sophisticated tools and mechanisms for you to aggregate accounts, get alerts on market activity, get stock quotes, as well as manage your portfolio of investments.
The Time Constraint
One of the most important advantages online banking offers is the convenience of conducting all financial transactions from the comfort of one's office or home. This is a great advancement for those who do not have the time to visit their local branch. Especially when it comes to the basic transactions like opting for statements, requesting a new cheque book or even transferring funds, internet banking can really speed up the entire process. You could even set up a savings account for your children.
Online Bill Pay
Banking through the internet has made bill payment easier than ever before! You can pay your credit card, electric, water, phone, and other bills by just logging into the bank's web portal. Many of the banks today offer a service called Electronic Clearance Scheme or ECS through which you can automatically debit funds from your account to pay particular bills or investments. Most mutual fund investments are carried out in this manner.
A certain day of the month is fixed for debiting a particular amount from your account. This happens automatically every month for a designated period or until you specifically ask for the discontinuation of this service. Online banking has certainly made life much easier for people. With no more need to visit a bank to conducting basic financial transactions, it is easy to accomplish more into one's day.