The Internet has not just entered our life – it has become a part of it. You can work, order food, buy train and plane tickets, take loans without leaving home: just submit an application online, and we will consider it without providing paper documents and transfer the money to your banking account.
At the same time, all operations can be tracked in your personal account, even from a mobile phone.
Banks have recently started offering a new service: online banking. It is considered one of the most promising areas for the development of the banking business. What is it? What opportunities do users get and why is it really convenient? Let’s talk about everything in order.
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; receive a username and password, then activate the service in the bank, and then go to the service from a regular PC, laptop or even a mobile device using your login and password.
Most banks do not charge a fee for using the Internet service since online banking reduces the costs of the bank, helps attract new customers and increase user loyalty.
What opportunities does Internet 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 view the data on all your deposits tied to the account, and also find out what transactions 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 your other card, to the card of another user of any bank. But you can transfer funds not only to cards, you also have electronic wallets at your disposal;
- Pay for goods and services. Buying clothes, non-cash currency, insurance policy, electronics (even in foreign online stores) – all this can be done from home, without leaving your cozy sofa – if you have an online banking service connected. One of the most demanded options has become the payment of bills for electricity, cellular communications, telephone, Internet, kindergarten and a dozen other services. Moreover, you can create a template for regular transactions and pay according to it, so as not to enter all the requisites 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 the growth of interest, withdraw part of the amount. As a rule, online services offer to study the types of deposits operating in the bank and open your own in just a minute. Furthermore – you can replenish deposits automatically;
- 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 deposit money via the Internet. Good news for borrowers: some banks allow payments that are larger than the amount specified in the agreement. Many users do not miss the chance to “throw” money into the account, reducing the loan repayment period and interest. Earlier it was necessary to visit the office for such repayment, but now a special application can be made through an online bank. Online banking also allows you to work with a credit card: you have access to complete information on it, from the date of issue to the limit. You can pay off debts online;
- Work with maps. Many banks offer virtual cards, they can be used to safely pay for purchases on the Internet. It’s not just this service. The Internet bank allows you to order a plastic card, change the account to which the card is linked, block the card if you suddenly lost it.
Not all opportunities are presented in all banks, some offer only informational support, that is, the user can only find out the state of the account and see all the transactions made; others allow you to manage accounts, make payments. And the most advanced option includes financial management: you can make transfers, work with loans, etc.
At the same time, the potential of Internet banking has not been exhausted. 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.
Online banking vs offline banking
Although many users got used to traditional banks, online banking is gaining momentum, there are several reasons to use it.
- Saving time. The main thing for which 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 queues. Besides, you do not have to adjust to the work schedule of the bank branch, you can perform all operations even at night;
- Immediate information. You can control the status of your accounts at any time and from anywhere;
- Fraud protection. If you have lost your card, then just quickly block your account. You can also track all transactions performed and respond quickly if someone suddenly withdraws money from the account;
- No commission. Many operations for which the bank charges a commission can be carried out via the Internet free of charge or for a lower fee;
- Bonus programs. Working with the 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 rates on deposits. The deposit can be made at the bank, but many banks offer to do it via the Internet; and the interest, in this case, will be higher.