In the modern age that we live under, technology has drastically changed how we go about our day-to-day life. More people are going online than ever before and age is no longer a barrier. Due to the increased popularity of online services, many businesses now choose to offer consumers a range of services via websites and mobile apps. In fact, some businesses have completely taken their services to online platforms, with no physical presence at all. One of the industries that continues to evolve with digital advancement is the banking sector. While there are still several reasons to visit a bank in person, for the majority of people, online banking is now all they need to manage their money.
As a financial claims company, there is no business better placed than AM1 Claims Management to provide expert insight and knowledge into the financial industry. By helping consumers receive compensation for a wide range of claims, from mis-sold pensions to investments, AM1 Claims holds years of experience in the finance sector.
In this article, AM1 Claims Management will talk us through the main differences between online banking and traditional banking, and how this affects you as consumer.
The Benefits of Online Banking
With online banking, you’re able to manage your finances with a push of a button through the bank’s website or mobile app. There are several services that you will usually be able to access, including checking your balance, transferring money to another account, or taking out a loan. At the core of online banking is convenience. It’s about making it as easy as possible to manage your money wherever you are at any time of the day. With this, you can also receive up-to-date alerts, such as if your balance is low or you have a new payment coming out soon.
Successful online banking is all down to the platform, whether a website or an app. Banks know how important it is to get the user experience just right in order to please customers. Online platforms often have a slick and modern interface that focusses on convenient and simple functionality. You should be able to do whatever you want from this one platform without the need for direct engagement.
Opening an online bank account is relatively quick these days. All it takes is filling out some important personal information and then the bank will verify that you are who you say you are. When everything is set up, they will automatically send you any essential items, such as credit or debit cards, straight to your address. As banks that are fully online usually have less operating costs, you will typically benefit from higher interest rates and lower fees.
The Benefits of Traditional Banking
When referring to traditional banking, we’re talking about a physical branch in your local area that you can visit. The most obvious benefit of traditional banking is the immediate and direct support that you can receive. There are no bots or automated systems, only customer support staff that are trained to help you. This level of support can be extremely helpful, especially for people who have questions, are unsure of something, or have limited experience in using online technology. Branches offer a large range of services, perhaps more so than online banking, such as the ability to hand in cash only for it to appear in your account within minutes.
Traditional banking may also appear as a safer option for some people and offer a greater peace of mind where there are concerns of security, privacy or something going wrong. One of the downsides, however, is that it can be time consuming travelling to and from the bank and waiting around in queues. This factor can also mean having to manage the visit around the rest of your day and the branch’s limited opening hours. Setting up an account can also be a hefty process as it will typically require filling out several forms and showing supporting documentation, steps which are often smoother and automated for online banking.
Which Option Is Best?
Ultimately, the best choice in banking service comes down to what you need and what you prefer. Online banking is becoming increasingly popular, and in a world where lockdowns are being enforced, visits to physical branches are either being discouraged or offering limited services. But with that said, physical locations are certainly not going away any time soon.
Most banks will recognise the need to cater to people of all walks of life, such as elderly people who struggle with online banking or people with limited internet connections or inadequate devices. Online banking is without a doubt an appealing option for a younger audience and is by far the most convenient choice. As the world evolves and more people are capable of online banking, banks may begin to limit traditional services and close branches. Until then, however, it’s great for society to have a choice in how they manage their finances.