Why It Is High Time You Should Shift to Online Banking

Nov 15, 2023 / Reading Time: Approx. 5.5 mins

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Why It Is High Time You Should Shift to Online Banking

From waiting in long queues to withdraw money or deposit a cheque to transferring money or taking a loan within a few seconds with just a few taps on your smartphone, banking has come a long way. Today, performing most banking tasks is a cinch to do.

However, given the sensitivity of financial transactions, banks and financial institutions implement precautionary measures to avoid mistakes and frauds that could result in emotional and financial loss to their users. Examples of such preventive measures include receiving OTP only on the registered mobile number or email ID, entering the credit card PIN and CVV, setting difficult-to-crack passwords, needing to change the online banking password every three months, KYC verification, and answering security questions when logging in from new devices, among others.

Despite these safeguards, some individuals expect banking transactions to mirror the simplicity of other digital systems, like online shopping. What they may not understand is that dual-factor authentication and online verification do not complicate online transactions; rather, they fortify the security of these transactions. Nevertheless, recognising the need for enhanced user convenience, the banking sector continues its digital transformation. In the coming years, we may perform certain banking activities in ways we hadn't envisioned.

Despite the government and banks' constant efforts to promote digital banking and online transactions, many individuals still hesitate to use online banking. As per a report by Statista, the online banking penetration in India is forecasted to be 40.30% in 2023. It means a large portion of the population has not used online banking yet.

If you are amongst those who still prefer brick-and-mortar banking, you are probably missing out on many benefits offered by the digital banking system. This article elucidates why it is high time you should shift to online banking.

Before we move further, let's first understand what online banking is.

Online banking involves conducting banking activities exclusively through online channels, including websites and mobile applications. This allows customers to engage in banking transactions and access services remotely, eliminating the need to visit a physical branch.

The rising popularity of online banking in recent times can be attributed to its convenience and functionality. Customers now have the flexibility to access their accounts from anywhere at any time, enabling them to carry out various transactions such as checking account balances, transferring funds, paying bills, and even obtaining loans.

Here are the 5 benefits of online banking that explain why it is high time you should shift to online banking.

1. Unique Features:

When you bank offline, you are dependent on the banker's advice for all your banking decisions. This advice could be influenced by the monetary and/or non-monetary benefits offered to them, such as incentives and monthly targets.

In the case of online banking, many banks offer personalised investment advice when you log in to your online account based on your investment and shopping pattern. While such advice could be a promotion, you have other options to explore, which a banker may not disclose.

Apart from financial advice, online banking apps also offer features like financial health check-ups, personal loan calculators, EMI calculators, insurance calculators, and more. You can do basic tasks like checking your account balance, bank statements, utility bill payments, and fund transfers without stepping out of your home or office.

You can also speak to or chat with a customer service representative in case of any queries or doubts.

2. Transaction Processing Time:

Online banking revolutionises the speed and efficiency of financial transactions, allowing users to carry out various activities in real time or within mere minutes. This transaction processing speed proves especially beneficial for individuals who need quick access to their financial information or need to perform transactions within a specific timeframe.

The seamless transfer of funds between accounts, instant bill payments, and instant balance inquiries have increased the pace of banking. This increased speed in transaction processing is helpful for those navigating busy schedules or managing financial matters with urgency. Whether settling bills, transferring funds to meet immediate needs, or gaining swift insights into account balances, online banking eliminates the constraints of physical branches and traditional banking hours.

It not only enhances convenience but also aligns with the fast-paced demands of modern lifestyles, providing users with a dynamic and responsive platform for managing their financial affairs.

3. Ease and Convenience:

Online banking eliminates the need for physical visits to the bank branch. You can perform most banking transactions right from the comfort of your home. The flexibility to engage in banking activities at any time and from any location stands out as a primary advantage of mobile and online banking solutions.

The main inconvenience with online banking arises when it comes to depositing cash. Nonetheless, there are practical solutions, such as purchasing money orders or using linked ATMs to deposit cash, which can mitigate this limitation.

Numerous mobile banking applications enable users to deposit checks remotely. Simultaneously, users can check their account balances, transfer funds, and set up notifications for overdraft alerts-all without the need to visit a physical branch. This not only saves time but also elevates convenience.

Making transactions electronically is more beneficial than using cash. Electronic transactions offer enhanced security (eliminating the need to carry physical cash), improved hygiene (reducing contact with physical currency), and the ability to track transactions electronically.

4. Security:

Another significant advantage of online banking is the assurance of security. Online banking systems prioritise high levels of security, incorporating robust encryption and multi-factor authentication procedures to safeguard your sensitive financial data.

When you access your online banking account, you can trust that your information is being kept safe and secure.

Online banking might offer a higher level of safety compared to traditional banking approaches, as it minimises the risk of fraud and identity theft. Through online banking, you can monitor your accounts in real-time and receive alerts for any suspicious activity, empowering you to act and safeguard your financial well-being promptly.

5. Easy Transaction Monitoring:

Online banking transforms the landscape of financial management by offering users easy transaction tracking features. With real-time updates, users gain immediate access to the latest information regarding deposits, withdrawals, and other account activities.

The convenience extends to a comprehensive transaction history detailing past inflows and outflows of funds, often accessible for a specified period. This empowers users to efficiently review and reconcile their financial activities.

Users can also set up personalised alerts for specific transaction activities, such as large withdrawals or low balances. These alerts serve as proactive notifications, keeping users informed about critical changes in their accounts.

By combining these functionalities, online banking not only provides a dynamic and up-to-date overview of financial transactions but also enhances user control and awareness. This streamlined approach to transaction tracking promotes financial transparency, enabling users to make well-informed decisions.

To conclude:

Utilising mobile and online banking empowers you to manage your financial affairs with greater ease and convenience. However, the benefits of online banking extend beyond mere financial transactions, tailoring banking opportunities that align with your preferences and requirements, irrespective of where you are. Online banking has significantly impacted the banking industry and will likely continue to do so.

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KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.

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