Driven by lower banking fees, better interest rates on savings accounts, round-the-clock convenience and mobile phone usage, more consumers than ever are doing their banking online than at brick-and-mortar locations.
The adoption of online banking has doubled since 2004, reaching 71 percent of consumers in 2015, according to Javelin Strategy & Research’s Online Banking Forecast 2016. And these numbers are growing, as more consumers are made aware of the different services they can take advantage of at home and on-the-go.
National Online Bank Day, observed for the second year in a row, highlighted the advantages of online banking on a day when traditional brick-and-mortar banks are closed.
From the distinct cost advantage over traditional banks, (since they don’t have the expenses associated with maintaining a physical branch network) to their flexibility and convenience, here is a deeper look at how online banks are providing advantages to their customers.
For example, Ally Bank, one of the leading online banks, is able to offer consistently competitive rates and is always open with 24/7 live customer service. In addition, most online banks have a “customer-friendly” fee structure in contrast to traditional banks, as they often do not impose monthly maintenance fees and typically offer lower fees on transaction services.
“When we launched Ally Bank seven years ago, we were very focused on building an obviously better banking experience for our customers,” says Diane Morais, chief executive officer and president of Ally Bank. “Our focus is on designing competitive products and features to meet our customers’ needs, combined with the best technologies and customer experience.”
Advances in digital technology have literally put a broad range of services at customer’s fingertips. Mobile payment services such as Apple Pay, Android Pay, Samsung Pay and Masterpass, and online bill pay and mobile check deposit, mean customers can complete many transactions from home or while on-the-go using mobile devices.
Most banking transactions that used to require a visit to a brick-and-mortar location are now conducted online, fundamentally changing customer banking behavior and expectations. Online banks are striving to make handling personal finances simple and flexible with no time wasted in line at a neighborhood bank. To learn more about National Online Bank Day and the advantages of banking electronically, visit nationaldaycalendar.com/national-online-bank-day.
If you are seeking a more modern banking experience, it’s worth investigating online banking to determine if it’s right for your pocketbook.