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Discover the transformative advantages of online banking, from convenience and enhanced control to community connections, revolutionizing the way we manage our finances.
According to a recent study on U.S. Consumer Banking Statistics by Forbes Advisor in 2023, approximately 78% of Americans now prefer using mobile apps or websites for their banking needs rather than conducting transactions in person.
While the global pandemic highlighted the importance of digital banking platforms, it's important to note that mobile and online banking have been in existence for some time.
Kevin Cohee, the owner, chairman, and CEO of OneUnited Bank, the largest Black-owned bank in the United States, headquartered in Boston, emphasizes that the pandemic only expedited a trend that was already underway.
Traditional banking methods, such as visiting a branch, using the phone, or utilizing ATMs, have lost their appeal. During the Covid-19 pandemic, many banks closed their branches or reduced their operating hours, leading to increased reliance on digital banking options. Furthermore, customer service call centers often face long wait times, further incentivizing customers to explore digital banking alternatives in recent years.
Digital banking refers to the complete execution of banking activities through online platforms, including websites and mobile applications. It enables customers to conduct various banking transactions and access banking services without the need to physically visit a brick-and-mortar branch.
The convenience and practicality offered by digital banking have contributed to its growing popularity in recent times. Customers have the flexibility to manage their accounts anytime and anywhere, empowering them to engage in a multitude of transactions. These transactions include checking their account balances, transferring funds, paying bills, and even applying for loans.
Whether you're already an avid user of digital banking or you're considering downloading your bank or credit union's mobile app, it's crucial to understand the benefits that come with banking online. Here are the key advantages of digital banking:
In summary, digital banking offers unparalleled convenience, a wide range of features, enhanced security measures, increased control over finances, and broader social and economic benefits. It has transformed the way customers interact with their banks, empowering them to manage their finances efficiently and effectively.
Online banking is generally considered safe due to the various technologies employed by banks such as encryption, firewalls, and multifactor authentication to safeguard customer data and prevent unauthorized access. Nonetheless, accessing online banking through public Wi-Fi networks or unsecured devices can pose risks and make customers vulnerable to attacks by hackers.
To ensure the security of your personal and financial information while banking online, it is essential to maintain a vigilant approach and implement necessary precautions. This involves the following measures:
By adhering to these precautions, you can enhance the security of your online banking activities and protect your personal and financial data from potential threats.
Compared to traditional banks, online banks generally have lower operational costs, resulting in fewer and often reduced fees. However, depending on the institution you choose, you may still encounter some common fees related to online banking. These fees can include:
It's important to review the fee structure of your chosen online bank and familiarize yourself with their specific fee schedule. Understanding the fees associated with online banking will help you make informed decisions and manage your finances effectively.
For an exceptional digital banking experience, the best online banks offer highly rated mobile apps and user-friendly websites equipped with advanced features. These platforms allow users to effortlessly perform daily banking tasks, gain greater control over their finances, and even connect with a community of individuals sharing similar financial goals. Based on Forbes Advisor research, the following seven online banks are considered among the best for digital banking:
These banks have demonstrated a commitment to providing innovative digital banking solutions, ensuring a seamless and comprehensive banking experience for their customers. Whether through their mobile apps or web portals, these institutions prioritize user satisfaction, convenience, and a wide range of features to meet various financial needs.
Mobile and online banking empower individuals to manage their financial lives more effectively, offering convenient access to essential tools and features. However, the advantages of digital banking extend beyond traditional banking services. It enables connections to specialized communities and tailored banking opportunities, catering to individual preferences and needs, regardless of geographic location. Embracing digital banking opens doors to a comprehensive financial experience that goes beyond mere transactions.