Will online banks and comparison sites cause the closure of local bank branches?
With technology winning the race to the future, many businesses take their products and service to an online platform. Traditional banks are one of the institutions who is making a dash for technology by offering their services online. You can now apply for loans with ease on websites such as smslån, pay recipients easily with the click of a few buttons and enjoy doing it in the comfort of your own home.
While many bank users do not have access to the internet or have the necessary data to use online banking apps, the question is asked, “Will online banks cause traditional banks to close their doors?”
Traditional security versus online security
Traditional banks store your personal information in an online database. With that being said, the same level of security is used when you make use of online banking services. It is up to you whether you prefer the traditional or online way of banking but remember that along the way to your local bank, there are a number of other security risks you need to look out for. When making use of online banking, you are in the comfort of your own home.
Traditional banking fees versus online banking fees
When going to a traditional bank to deposit or withdraw cash, you will be charged a fee by the institution. Online banks, on the other hand, also charge a fee but not as much as traditional banks. Online banking services also tend to offer free checking; thus saving you a few dollars at the end of the month.
Traditional banking payments versus online banking payments
A huge reason for having a bank account is so that you can pay your bills. If you prefer the traditional way of banking, you would need to fill out forms each month for the bills that need to be paid, count out the exact change needed to pay it and stand in line while waiting to deposit the money. Some banks are quite busy at the end of the month, so you would need to stand in line for quite some time. When making use of online banking, you can access your online banking profile at any time, select the recipients you would like to pay and with the click of a button, pay the amount you need to pay.
While taking the above-mentioned point into consideration, it is safe to say that traditional banking will soon be something of the past. That being said, online banking offers a huge amount of benefits such as saving on bank fees, comfort and being in full control of your financial situation. Developing countries may still have a few banks for clients who do not have access to online banking, but as technology moves on, new and innovative ways will be invented to bring online banking to those who previously had no knowledge of it.