Nowadays, almost every banking transactionthat once had to be done in personcan be done over the Internet. Despite the advantages of online banking, such as saving trips to a local bank and avoiding long lines, a considerable number of people still prefer the more traditional form of banking in person. Often, the reasons stem from disadvantages that are incurred when banking online. Internet Connection Not everyone enjoys the luxury of having a stable and fast Internet connection at home.
However, it's important to consider that just because online banking is a good addition to the world of consumer banking, doesn't necessarily mean that direct internet banks are a substitute for their brick-and-mortar peers in all cases. The Evolution of Online Banking As commercialization of the internet evolved in the early s, traditional brick-and-mortar banks began to investigate ways of delivering limited online services to reduce operating costs.
The success of these early efforts led many banks to expand their internet presence with improved websites that featured the ability to open new accounts, download forms and process loan applications.
The next stage of development was the arrival of internet-only banks that offered online banking and other financial services without a network of branch offices. These so-called "virtual" or "direct" banks were able to pass savings in labor and overhead costs on to their customers by offering higher interest rates on deposit accounts, lower loan costs and reduced service fees.
Based in Atlanta, it began operations on October 18, While it was not very profitable before it was bought out three years later, it proved the feasibility of the virtual bank concept. The Benefits of Online Banking Online banking has plenty of perks.
Convenience Direct banks are open for business anywhere there is an internet connection. Other than times when technical maintenance is being done, they are open 24 hours a day, days a year. If internet service is not available, customer service is normally provided around the clock via telephone.
Real-time account balances and information are available at the touch of a few buttons.
This makes banking faster, easier, more efficient and even more effective because consumers are able to always stay on top of their account balances. Updating and maintaining a direct account is also easier.
It takes only minutes to change your mailing address, order additional checks and check for current interest rates. Better Rates The lack of significant infrastructure and overhead costs allow direct banks to pay higher interest rates on savings and charge lower mortgage and loan rates.
Some offer high-yield checking accounts, high-yield CDs and no-penalty CDs for early withdrawal. Some accounts can be opened with no minimum deposits and carry no minimum balance or service fees.
To learn how to choose a bank that won't charge you unnecessary fees, check out Choose to Beat the Banks. Services Direct banks typically have more robust online services that offer a comprehensive set of features that may not be found on the websites of traditional banks.
These include functional budgeting and forecasting tools, financial planning capabilities, investment analysis tools, loan calculators and equity trading platforms.
They also offer free online bill paying, online tax forms and tax preparation.
Mobility Online banking now includes mobile capabilities. New applications are continually being created to expand and improve this capability on smartphones and other mobile devices. Transfers Accounts can be automatically funded from a traditional bank account via electronic transfer.
Most direct banks offer unlimited transfers at no cost, including those destined for outside financial institutions.
They will also accept direct deposits and withdrawals that you authorize, such as payroll deposits and automatic bill payment.Nowadays, almost every banking transactionthat once had to be done in personcan be done over the Internet.
Despite the advantages of online banking, such as saving trips to a local bank and avoiding long lines, a considerable number of people still prefer the more traditional form of banking .
Important Advantages and Disadvantages of Online Banking Services. ☞ This is a major weakness of online systems; they are always vulnerable to fraud, despite excellent security. ☞ If your account is not protected, it is likely to be infiltrated upon and stolen.
SWOT analysis Strengths - Secure and convenient online banking for customers - Quality product and friendly service - Focused differentiation strategy - Low cost structure due to no physical presence of branches - Knowledgeable and friendly staff members - Technology savvy and convenience m.
What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something.
See WikiWealth's SWOT tutorial for help. Swot e Banking. For Later. save. Related. Info. Embed. Share. Print. Related titles. E. E- Banking Project Report by SUDARSHAN ability to cut internal cost due to advanced technology Increased efficiency due to automation Increased accuracy of banking transaction Weakness High cost of service Continual wants of customers wants and 5/5(1).
☞ In a nutshell, online banking offers similar facilities to traditional banking, sans the time and location. ☞ With online banking, you can transfer money between accounts, pay bills, pay for shopping, and perform myriad other facilities.