There can be some difficulty in choosing between an online bank and a physical bank, so knowing some of the nuances can be useful to you. Fortunately, there are not many of them, but for someone they can be decisive.
Today it may seem that the border between virtual banks and conventional ones is practically erased, but this is not so. What is so special that Internet banks can offer in order to prefer them to traditional ones?
Benefits of online banking
Based on the fact that a fully digital bank, as a rule, does not have the costs of maintaining infrastructure such as branches, it can offer more attractive rates for its services compared to conventional banks.
Further, while all the major traditional banks spend huge resources on building and improving their applications, virtual banks still seem to offer a better online experience for their customers, according to reviews.
However, to summarize, all the benefits will take no more than three points:
- Lower fees
- Higher interest rates
- Improved Online Experience
One can question the relevance of the third point, since there may be an Internet bank with disgusting applications and services, or you can find a traditional bank whose online functions are hard to find fault with. In addition, the first two points are also not a priori.
Then the cons begin.
Disadvantages of online banking
An Internet bank cannot offer the full range of services that are typical of physical banks in the real world. This includes:
- Personal contact
- Special services including preferential rates
- Transaction flexibility
- Own ATMs (there are exceptions)
- Notarization
- Quick resolution of problems with visiting a branch
- Independence of clients from the Internet and devices
- Easy cash replenishment
- Cells for precious metals
- General reliability and stability
Summary
As you can see, online banking is far from without drawbacks. Does this mean traditional banks are better? Not always. For example, for entrepreneurs, an online bank can offer very tempting terms of service. And some virtual banks are created specifically for entrepreneurs and the self-employed.
As the demand for face-to-face contact fades or even becomes shunned, online banking continues to gain popularity. However, sometimes you may encounter some problems that will have to be solved with technical support for a difficult and long time, or even to no avail, but which could be resolved in a few minutes by visiting a bank branch.