The Internet has not just entered our lives – it has become part of it. You can work, order food, buy train and plane tickets, and take loans without leaving your home. Moreover, you can track all operations in your account using a mobile phone.
Modern banks begin to offer a new service: online banking. It is considered one of the most promising areas of banking business development. What is it? What opportunities do users get and why is it really convenient? Let’s talk about it.
What is online banking?
Online banking (or Internet banking) is a system that allows you to manage bank accounts and perform other financial transactions via the Internet without visiting a bank. To get access, you need to open an account, then activate the service in the bank, and then take advantage of the service from an ordinary PC, laptop or even a mobile device using the username and password.
Most banks do not charge for the use of the Internet service, as online banking reduces the costs of the bank itself, helps to attract new customers and increase user loyalty.
What opportunities does online banking provide?
- Track transactions on your accounts. You can find out how much money is in your account without an ATM. But, of course, the service is not limited to this. You can look at the data on all your deposits tied to the card, and also find out what operations were performed during the specified period: purchases, payroll, transfers, withdrawals and everything else;
- Transfer funds. There are plenty of opportunities: transfer money between your accounts, to another card, to the card of another user of any bank. But you can transfer funds not only to cards, electronic wallets are also at your disposal: Yandex.Money, WebMoney, QIWI, and others;
- Pay for goods and services. Buying clothes, cashless currency, an insurance policy, electronics (even in foreign online stores) – all this can be done from home without leaving a comfortable sofa if you have activated online banking. One of the most sought-after opportunities was payment of bills: for electricity, mobile phone, telephone, Internet, kindergarten and a dozen more services. Moreover, you can create a template for regular operations and pay for it so that you do not enter all the details every month, or even activate the Auto Payment service so that bills are paid automatically;
- Open and close deposits. You can also replenish deposits, track interest growth, withdraw part of the amount (if permitted by agreement). As a rule, online services offer to study the types of deposits operating in the bank, and you can open your own in a minute. Also, you can replenish deposits automatically. Indicate the write-off account and the crediting account, the date of replenishment and the amount (both fixed and a percentage of income or expenses), and the money is “accumulated” practically without your participation;
- Repay loans. This applies primarily to classic loans (including mortgages) that you took in cash – the bank will show the date and amount of the next payment, and you can make money via the Internet. But online loans are also repaid, issued over the Internet, for example, but the details can be repaid with a microloan. Good news for borrowers: some banks allow you to make payments that are larger than specified in the contract. Many users do not miss the chance to “throw” money into the account, reducing the loan repayment period and interest. But if earlier for such repayment it was necessary to visit the office, now a special application can be issued through the online bank. And online banking allows you to work with a credit card: you can access full information on it, from the date of issue to the limit. You can pay off your debts here;
- Work with cards. Many banks offer virtual cards, they can safely pay for purchases on the Internet. The case is not limited to this service only. Internet banking allows you to order a plastic card, change the account to which the card is attached, block the card if you suddenly lose it.
Not all banks provide a full range of opportunities, some offer only information support, that is, the user can only find out the status of the account and see all the operations that are performed, others allow you to manage accounts, make payments. And the most advanced option includes financial management: you can make transfers, work with loans, etc.
Online Banking vs Offline Banking
Although many users got used to traditional banks, online banking is gaining momentum, there are several reasons for using it.
- Save time. The main reason why users love Internet banking is the ability to perform banking operations without leaving home. In addition to comfort, this saves time because you do not have to go to the bank or spend time in a queue. Since you don’t have to adapt to the bank office work schedule, you can perform all operations even at night;
- Operational information. You can monitor the status of your accounts at any time and from anywhere;
- Protection from scammers. If you have lost a card, you can simply quickly block your account. You can also keep track of all transactions and promptly respond if someone suddenly withdraws money from your account;
- Lack of commission. Many operations for which the bank takes a commission can be carried out over the Internet for free or at a lower cost;
- Bonus programs. Working with an online service is not only free, but you can also often get additional bonuses and cashback for paying for goods and services via the Internet.
- Higher deposit rates. The deposit can be made at the bank’s office, but many banks offer to do it via the Internet, and in this case, the interest will be higher.
This is an incomplete list of online banking benefits. Online banks are not going to stop and plan to expand their functionality in the future and offer users new services that make their life easier.