Banking was initiated as a business practice in the ancient empires of Babylon. The first official bank of the modern era was the Bank of Venice, founded in 1157. This was ages ago, and at this point, very little of the worldwide population had access to banking services. Banking services also weren’t used by most parts of society. Modern banking as we know it was introduced by Charles Sanford and can be traced back to 1960. Since then, mankind has compounded impressive systems and banking methods to assist with our everyday life. One of these is online-only banking and can be accessed anywhere in the world. The first online banking platform was developed and released by Sumitomo Bank in the year 1997. By 2010, most of the major banks around the world had developed their own online banking systems, although not all offered the same services. Today, many individuals prefer only transacting online and not having to wait in lines and physical branches. Have a look at some pros and cons that online-only banks offer.
Pros of online-only banking
Recently, it’s been difficult to distinguish between the different types of banking, as many companies have increased their online presence and offer a personal touch as well. It may seem like it would be more convenient to bank with an institution that has branches, but remember – at the end of the day, your banking fees will cover all those outrageous overheads. Online banking offers a cheap and convenient alternative to standard banking, where you are able to visit branches. With online-only banking, individuals are able to do electronic fund transfers, receive payments, and even apply for loans if needed. Online banking now also offers various benefits, one of which is Forex Trading. Forex trading allows individuals all over the world to trade and invest in currencies they’ve never had access to. It allows you to invest in secure markets and also offers some individuals a decent profit at the end of the month. All these services are offered at a fraction of the rate compared to traditional banking because the online financial providers don’t have the excessive overheads that come with having thousands of staff and branches all over the country.
Cons of online-only banking
With some astonishing benefits, banking online only could become a headache if you’re not knowledgeable about the processes and banking strategies you need to understand in modern banking. You don’t have access to face to face consultations with your banking representatives, and you also won’t get the guidance that brick and mortar banks offer. You also won’t have access to automated teller machines, which could foresee some trouble if you deal with plenty of cash and often make cash deposits. Modern-day brick and mortar banks also offer forex trading, online payments, and online platforms in most cases.
Regardless of which banking method you’re leaning towards, it is of utmost importance to get a detailed list of what your personal banking requirements are and ensure that you choose an option that suits you. Using the incorrect banking method could lead to costly consequences and inconvenience. So when making the big decision, make it wisely and go out there and bank yourself to success.