Considering signing up for online banking for the first time? If you’re nervous about moving away from phone and in-branch banking, read on.
We’ve put together a rundown of the main pros and cons of online banking. This should help you decide if it’s the right choice for you.
But remember that when it comes to managing your money, a bank isn’t the only option. Open a Wise Account online, and you can spend, send and receive in 40+ currencies all in one place.
What are the advantages of online banking?
So, what are the advantages of online banking over traditional banking? Here are just a few of the main benefits:
1: Your money is available anywhere
With online banking, all you need is an internet connection and you can check your balance or make a payment. You’re not tied down to one geographical location, like with using a local bank branch.
2: Money transfers are easy
You don’t need to recite account details over the phone or fill in paper forms to send money online. You can set up a new payment in moments, and save the details for future use.
3: Opening a new account is a breeze
Many banks let you open an account online in just a few minutes. This beats queuing at the bank, filling in forms and handing over documents. You can get a new account up and running in just a few clicks, and get on with the rest of your day.
4: Other banking services are so much quicker
With online banking, there’s no need to take time out of your day to visit an ATM to check your balance. Similarly, you don’t need to visit a branch to pay bills or wait for a statement to arrive in the mail. You can do it all in minutes, just by logging in on your laptop or mobile device.
Looking for an alternative to a bank? Try Wise
If you want the convenience of managing your money online, and a cheaper way to send money internationally, check out Wise.
While Wise is not a bank but a Money Service Business (MSB), it’s a great alternative to cover many of your banking needs.
With the Wise Account, you’ll get all these brilliant benefits:
- Bank details in 10 currencies
- The option to hold, send, spend and convert 40+ currencies at once
- Send money overseas with low and transparent fees,
- Order a Wise card for a one time fee of just $9 - for use in 174 countries
- Mid-market exchange rates on all transactions.
It’s quick, easy and free to open a Wise Account online. You can set up a transfer in just a few clicks, or use the handy Wise app to manage your money on the move.
Please see Terms of Use for your region or visit Wise Fees & Pricing: Only Pay for What You Use for the most up-to-date pricing and fee information.
The disadvantages of online banking
We’ve looked at the advantages of online and mobile banking, but now it’s time to look at the flip side.
Here’s a rundown of potential disadvantages to consider before opening an online bank account:
1: Tech sometimes may fail
If you don’t have internet access or the bank’s website, you could be left without access to your account. This can happen when you’re traveling, have a power outage, or simply because of unexpected technology disruptions.
2: Getting in-person customer support can be difficult
There’s nothing like speaking to someone face-to-face to get help with banking, especially if the issue is complicated. With online banking, support is often provided online - through live chat or email.
Some online banks do offer phone support, but as they don’t have branches, you won’t be able to pop in and seek help in person.
3: Security may be a concern
Internet fraud is an ever-present issue, and could put some people off using online banking.
However, it’s worth bearing in mind that banks have sophisticated security measures in place. There are also lots of things you can do to protect yourself, including setting strong passwords and never sharing them with anyone.
4: You can’t deposit cash
Unless the bank permits deposits at an ATM, there isn’t any option to deposit cash in your account using online banking.
Bottom line
Ultimately, it’s completely up to you whether you feel comfortable using online banking. And after reading this guide, you should have a better idea of its pros and cons.
More and more banks are moving towards an online banking model, so it could be worth giving it a try. For many people, the benefits outweigh the drawbacks.
And of course, there are other online alternatives to banks, such as Wise. It offers a convenient, low-cost way to manage your money internationally, so it’s ideal for globetrotters, expats and business owners with dealings overseas.
FAQs
What are 7 major advantages of online banking?
Online banking offers the following benefits:
- Access your money anywhere
- Convenience - all your banking services are all in one place
- Lower fees
- Higher interest rates (potentially)
- Faster money transfers
- No paperwork, queuing or being put on hold on the phone
- It’s easy to open personal and even business bank accounts online.
What are the advantages and a disadvantage of an online bank?
Online banks make it quick, easy and convenient to manage your money wherever you are in the world. All you need is a device and an internet connection.
But they do have their downsides, including lack of in-person customer service, the option to deposit cash and potential security risks.
What are 3 advantages of banking?
Using a bank can have many benefits, including:
- Protecting your money
- Easily manage your finances, including sending and receiving money
- Convenience.
Are there disadvantages of online banking?
Online banking does have some potential disadvantages. These include a lack of face-to-face customer support, cash deposit services and a risk of technology failures or security breaches.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
