Banking has taken on a new shape and has fully embraced the digital landscape. Online banking has gained popularity in the Philippines, with many banks providing customers with the option to do banking transactions online.
Bangko Sentral ng Pilipinas (BSP) Governor Nestor Espenilla observes an increasing demand from consumers and small-and-medium enterprises for banking innovation.
However, the world bank reports that 51% of Filipinos still remain ‘unbanked’. This signifies an excellent opportunity for banks further bolster efforts for online and mobile banking in the country especially with a growing digitally savvy market.
With that said, are you curious about online banking? How different is online banking from traditional banking? Scroll down to learn about the advantages of online banking.
What is online banking?
Simply put, online banking allows consumers to access their accounts and do banking services and online transactions. It is a safe and convenient way to do banking transactions on your computer or mobile device.
On the other hand, traditional banking refers to going to a physical bank and interacting with bank staff on different transactions such as deposits, withdrawals, and account opening. Forms are filled out physically for documentation and record-keeping.
Here are the basic steps to access and manage your account online.
1. Register for e-banking: Register for an online banking account with your bank. Provide personal information and create login credentials.
2. Logging in Once registered, you can log into your e-banking account using login credentials (username and password). Other banks require two-factor authentication for added security.
3. Viewing account information: After logging in, you can view information about your account – check account balances, transaction histories, etc.
4. Making transactions: You can perform online transactions such as paying bills, transferring funds between accounts, depositing checks, and more.
5. Security measures: Do not share login credentials with anyone to further tighten security. Banks use different security measures such as encryption, firewalls, and fraud detection systems.
Advantages of Online Banking
With online banking, you can avoid long queues and better manage your time and account. Check out the advantages:
1. Comfort and Convenience:
Many people have recognized the convenience of online banking. Online banking lets you access your account anytime and anywhere, 24/7. Whether at the beach vacation, grocery shopping, or traveling, you can perform banking transactions minus the hassle of going to a physical bank.
2. Time-saving: Since you can access your account online and do your transactions yourself, it saves you much time and effort. Unlike traditional banking, you must travel physically and wait in line to avail of banking services.
3. Lower fees: Most online banks have more manageable overhead costs like rent and personnel expenses. Online banks can offer lower fees and better interest rates.
4. Account management: In real-time, you can access your account information, such as balances and transaction histories. You can keep track of your finances effectively and conveniently.
5. Advanced security: Online banking often employs advanced security measures – two-factor authentication and encryption for protection against fraud and theft.
6. 24/7 customer service: Should you need assistance, there is 24/7 customer service that you can access. Some live support agents can assist through chat or phone and provide quick solutions to address issues.
While online banking is advantageous, there are some drawbacks along the way, such as:
1. Technical issues: Power outages and internet service disruptions are common issues with online banking. Sometimes, banks experience service issues. When this happens, you can access online banking once your bank’s online service is running.
2. Lack of personal interaction: You won’t be able to build relationships compared to traditional banking, where you directly interact with bank staff and managers.
3. Limited services: Some banks may need to offer more extensive banking services. Please check which banks offer services that benefit your banking needs. In conclusion, online banking is a great and convenient way to manage your personal banking transactions, provided you have an internet connection wherever you are. It provides flexibility and accessibility to banking services. Many banks offer extensive and secure banking platforms. Why not try it?
