Living in this modern generation got us exposed to a lot of things, especially when it comes to advanced technologies like video calling through multiple devices, online banking, a cashless environment and getting to know one another and communicating seamlessly through multiple devices as well. Banking is easier these days, as we only need to do an internet bank account creation Malaysia to get started with cashless transactions, as well as keep track of our financial expenses. Let’s take a closer look at what internet banking is all about.
What is internet banking, and why is it trending?
In the early 1990s, as the internet became increasingly used for business purposes, traditional banks began exploring ways to offer their services online. The success of these preliminary forays prompted several financial institutions to increase their online visibility by enhancing their websites to facilitate account opening, document downloading, and application processing.
A result of this was the growth of online-only banking. This category includes financial institutions that provide banking and other services solely via the Internet, rather than through a traditional branch network.
What are the pros of internet banking?
Increased Savings, Reduced Costs
Direct banks can provide greater savings rates or APYs since they have the lower infrastructure and overhead costs. The top ones provide 1% to 2% more than a typical bank, which adds up if you have a significant deposit. Some direct banks with high APYs simply provide savings accounts, but most offer high-yield savings accounts, CDs, and early-withdrawal CDs.
At a direct bank, you’re less likely to incur fees for a variety of banking transactions, such as maintaining a low account balance, making direct deposits, or making payments using a check or debit card. Most direct bank accounts don’t require a minimum balance and don’t charge any maintenance fees.
Optimized Web Interactions
To better serve their customers, traditional banks are creating new apps and updating their websites. When it comes to the convenience of internet banking, however, direct banks appear to be ahead of the curve.
It is explained in a survey of retail banking customers that when it came to customer service, ease of use, and the overall quality of the banking experience, traditional banks fell short of direct banks.
On the other hand, what are the cons of internet banking?
Inability to Form Close Relationships
Visiting a physical location of a conventional bank allows you to build relationships with the people who handle your banking needs. That can be helpful if you ever find yourself in a position where you need to make adjustments to your banking setup or if you find yourself in need of extra financial services like a loan. If your financial situation changes, a bank manager may be able to adjust your account conditions or reverse an obligatory fee or service charge.
The Scope of Available Services Has Been Reduced
Some online-only banks may provide fewer services than traditional banks. Traditional banks sometimes provide cheaper interest rates and free financial counselling. Notarization and bank signature assurances can’t be done online. These services make business and legal dealings feasible.