The Benefits of Online Banking

Online banking has changed everything we knew about managing our finances. There are many advantages online banking offers that conventional banking has difficulty matching. From convenience and enhanced features to better security measures and faster transactions, being able to do your banking digitally online saves you time, effort, and even money.

It’s important to know about online banking benefits, like how to use mobile apps or transfer funds between accounts. Since online banking was developed in the early 1980s and banks started offering unlimited electronic services, today’s online banking has evolved significantly.

Read on for the top 5 benefits of online banking.

1. Convenience

One of the most significant advantages of online banking is the convenience it offers users. When you use online banking, you have instant access to your account information from wherever you are. You can perform virtually any transaction, any time, from anywhere – as long as you have an Internet connection. 24/7 accessibility eliminates the need to visit a physical branch during limited business hours, and you’ll never have to wait in line for a teller.

Mobile banking takes this convenience even further since you can manage your finances directly from your smartphone or tablet – mobile apps let you access your account with just a few taps of the screen. Read on to learn more about the benefits of online banking.

2. Enhanced Features

Online banking advantages include a range of additional features that traditional banking interactions don’t. For example, you can check your account balances, transfer funds between accounts, pay bills, deposit checks, and manage your account settings from your computer.

Online features also often include budgeting tools and paperless e-statements. In addition, customer support is generally a feature of most online banking platforms, offering you various channels to access support, including phone calls, live chat services, and secure messaging options. This means help is available whenever you need it, without you having to step foot in an actual bank.

3. Better Security Measures

It’s normal to have security concerns when you think about digital financial information. But online banking platforms with most major banks and credit unions have gone to great lengths to implement advanced security measures and ensure your personal and financial data are safe from unauthorized access or cyber threats. Some of the critical measures that are in place include:

Two-factor authentication: This is a critical feature in online banking systems that is becoming more popular. To ensure optimal security, users must provide two different forms of identification before accessing their financial accounts. For example, you may type in your password, but then receive a unique code by text, email, or phone which you have to enter for added security. This ensures that, even if somebody gets your login credentials, they won’t get past the second factor posing as you unless they have physical possession of your phone or email and can access data from it.
Fraud protection: Most banks have robust fraud protection services that detect and prevent suspicious activities. For example, HFS Federal Credit Union uses accurate time monitoring and will flag unusual transactions. You’ll be immediately alerted if any suspicious activity is detected.

4. Fast Transactions

One of the major advantages of online banking is that it allows you to manage your finances in real time without going to a branch, waiting in line, or sitting on hold on the phone. This model of banking lets you enjoy the following:

Online bill payments: Paying bills has never been easier than it is with online banking. You can organize one-time or recurring payments for virtually every bill you have. Pay your utility bills, credit cards, loans, and more. Using automated payments, you can ensure that you never have late fees and your bills are paid on time every month.
Transfers: Moving money between accounts or transferring funds to somebody is easier than ever when you use fund transfers through online banking platforms. With HFS Online Banking, you have the ability to transfer funds between your own accounts or to other HFS members, as long as you know their account number.

5. Easy Account Management

A huge advantage of online banking is how easy it is to manage your account. User-friendly platforms allow you to open new accounts, set up account preferences, and monitor financial activities in seconds.

Open accounts online: You no longer have to go to a branch and complete tons of paperwork to open your next account. Log onto your account from the comfort of your home or office and open a new account, like adding a checking or special shares to your existing account, within minutes. You only need access to a computer or mobile device, an Internet connection, and to be enrolled in HFS Online Banking. To authenticate your identity, you can securely provide personal data like your name, address, Social Security number, and other documentation like a driver’s license or passport (if needed).
Easy account setup: An often overlooked online banking advantage is the option to set up your online account in a straightforward and intuitive way (with the most reputable online platforms). Once your account is open, you simply:
- Create a unique password and username
- Add any external accounts you want
- Customize your notifications so you’re alerted via email, text message, or push notification any time a specific event is triggered (like a low-balance warning or if a large transaction processes)

Final Thoughts

The advantages online banking and mobile banking offer improve every day – from ease of use and convenience to enhanced features, robust security measures, fast transactions, and simplified, accessible account management.

If you’re not already taking advantage of mobile or online banking, reach out to HFS Federal Credit Union today to learn more about our comprehensive suite of online services.