The Internet has changed the way we interact with the outside world, including the way we bank. Online banking actually began in the early 80s but didn't pick up much traction until the 90s. Today, many of us can't imagine banking without being online. What is it about online banking that is so revolutionary and game changing? Well, pretty much everything.
While brick-and-mortar banks still offer the convenience of physical locations, online banking, as well as online-only banks, offer other benefits in many ways:
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Save time. For those who have switched to online banking, gone are the days of waiting on long bank lines. Checking your balances, making transfers, paying bills, just to name a few transactions, can all be handled without the help of a teller.
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More accessibility. Connectivity doesn't end at the computer. Mobile banking picks up where your personal computer leaves off. One of the greatest time-savers of mobile banking is the ability for consumers to deposit checks without having to step foot in a branch.
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Better resources. It's easier than ever to set and track a budget, find loan and mortgage rates, compare products and research your bank's product offerings, helping to make consumers more well-informed about the ways in which they handle their money.
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Higher interest rates. When it comes to online-only banks, such as Popular Direct, interest rates on savings accounts are often higher than at your physical bank because they have less overhead.
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Lower fees. If you meet certain criteria at most banks, such as account balance thresholds, or bill pay requirements, you can probably access lower fees than you would otherwise. However, with online-only banks, lower fees are generally easier to come by.
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24/7 access to your accounts. Unlike your local bank, the Internet never closes. So as long as you have access to a computer or your mobile device, you have access to your bank account. Granted, many transactions will be posted during regular bank hours, but you're not limited by those hours to check your balances, set up transfers or bill pay.
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More competition. With more options available to consumers, banks have to find ways to remain competitive. This inevitably benefits the consumer with more options, promotions and ways to save money.
What does the future of banking look like?
Online banks and local branches alike will need to continue to drive innovative solutions to give customers a reason to keep coming back. Ultimately it will come down to where consumers can get the best experience, service and rates, and we hope to lead the way.
The information mentioned in this article is for informational purposes only, is intended to provide general guidance and does not constitute legal or tax advice. Each person's situation is unique and may materially differ from the information provided herein. You should seek the advice of a financial professional, tax consultant and/or legal counsel to address your specific needs before any financial or other commitments regarding the issues related to your situation are made. Popular Bank does not make any representations or warranties as to the content contained herein and disclaims any and all liability resulting from any use of or reliance on such content.