7 Benefits Of Online Banking For Individuals And Businesses
- Why is online banking important?
- Benefits of online banking for business
- How to find a good online banking provider
- Key takeaway
Online banking is not only about providing convenience for you as a customer. It’s also about enhancing the quality of your life by completing your banking tasks with less time and effort.
Why is online banking important?
If you are still banking the old-fashioned way, you may want to consider the advantages that online banking can provide.
You may be surprised at how much online banking can make your life much easier and hassle-free.
Here are some of the top benefits of using online banking services for individuals as well as businesses:
1. Pay bills online
Most online banking services will allow you to pay your bills online. Usually a banking service will enable you to set up recurring payments of a specific amount on a monthly basis.
This can be a huge timesaver for certain bills which do not fluctuate from month-to-month such as an insurance policy, rent or automobile payment.
You may also enable a payee to automatically debit your account for the amount you owe each month. This may be ideal for bills that change every month, such as water or electricity usage.
Usually, this can be set up via the payee’s company website where you may have to provide your account number or debit/credit card number.
If you are looking to pay bills via online banking you may want to pay attention to fees associated with certain online banking platforms.
For example, some online banking service providers will charge you a fee for using ACH transfers, which many people prefer over wire transfers due to the ease of reversing transactions in the case of you making a mistake.
An ACH transfer is an electronic transfer of funds between banks via the Automated Clearing House Network.
Want to minimize fees? Try new banking services like Spiral¹, which charge no monthly fees if you make a deposit or withdrawal every 90 days². Spiral also does not charge any fees for transferring money by ACH.
2. Monitor transactions conveniently
Online banking enables you to track your finances and transactions from anywhere.
This can be particularly convenient if your online banking service provides you with a mobile app option. You will be able to view, from wherever you are, as long as there is an Internet connection, all of your pending and completed transactions.
It is important to be able to become aware of when a transaction goes through your account, since there could be times when a transaction is not valid, either by mistake or even by fraud.
If you notice an erroneous charge, some online banking services will enable you to dispute the charge directly in the app.
Either way, you will want to be able to dispute the transaction right away to limit your liability for unauthorized transactions and errors. The longer you wait to dispute a charge the more risk you have of not being able to do so.
Also, if you are unsure whether you have enough money in your account to make a larger purchase, with online banking you will not have to call your bank or go to a brick-and-mortar location to find out.
You can just log into your online banking portal and check your balance. This can be even faster and more convenient with a mobile banking app, like the one provided by Spiral banking services¹.
3. Use Mobile App Banking
We are all on the go nowadays, which is why being able to take care of business via our mobile devices can be hugely convenient for many people.
This is why almost all online banking services will provide you with an option to bank via a mobile app.
With the mobile app, you will not have to open up your browser and navigate through the banking service’s website, which may be more cumbersome if you are on your mobile phone.
A mobile app will make signing in easier and give you access to your account in a format that is especially designed for a mobile device.
This will allow you to quickly navigate to the functions you want to use, whether that is checking your balance, viewing pending transactions or anything else you may require.
4. Usually lower fees
How digital banking is useful to banks can also ultimately benefit the account holders, whether they are individuals or businesses.
Since online banking requires much less physical infrastructure than traditional brick-and-mortar banks, the firms providing online banking services will have less costs of doing business. In the end, this benefits you, the end user of the online banking services.
In order to stay competitive, online banking providers may pass along these cost savings to their customers.
Therefore, most online banking services generally have lower fees and costs for account holders.
This is definitely the case with the Spiral mobile banking service¹, which does not charge monthly fees if you make a deposit or withdrawal every 90 days² and does not charge fees for transferring money by ACH.
5. Bank at any time, from any place
One of the biggest benefits of online and mobile banking is the ability to bank from wherever you are and at any time you require.
As long as you have a computer, laptop or mobile device along with a connection to the Internet, you will be able to take care of your banking needs online from where you happen to be.
Also, with online banking there is no need to worry about when a banking branch opens and closes.
Even if you travel across state lines, you will not have to worry about whether or not your bank has any branches in that state since all you need is to connect to the Internet to do most of your basic banking activities.
You can deposit your paycheck extremely early in the morning, well before a brick-and-mortar bank would normally open or even in the middle of the night long after a physical banking location would normally close.
6. Customer support
Although online banking services do not require dealing with a live bank teller like a traditional brick-and-mortar bank branch would, you will usually still be able to easily contact customer support from a real person.
In other words, you will receive the benefits of a virtual banking experience, such as lower fees and convenience, but you will still have the same advantage of customer service.
Spiral is one online banking service which has exceptional and truly personal customer service. According to Colan Miles, Head of Banking Services at Spiral, “Spiral focuses on humanizing the experience by connecting with our customers on a personal level.
This allows our customers to become further connected with Spiral, tying pleasant interactions to their overall experience.”
7. Conveniently donate to good causes
Along with performing your daily banking activities, such as paying bills or viewing your balance, easier and less time-consuming online banking services can make it easier to donate to your favorite charities and nonprofits.
The Spiral mobile banking app has actually been designed to make donating to your good causes fast and simple.
Spiral allows you to effortlessly give to 1 million+ charities³. The mobile app allows you to conveniently track all your donations so you can easily see who you’ve given to, and how much. This makes it much easier to track your donations during tax season and claim your tax breaks for donations with ease!
Also, as an account holder with Spiral you will be able to take advantage of Spiral’s donation matching program to make your giving go further. Get your donations matched dollar-for-dollar, up to $150 per year⁴.
Some of the carefully curated charities and nonprofits partnering with Spiral include:
- The Forbes Funds
- Boys and Girls Club of Metro Baltimore
- 1% for the Planet
- David Ortiz Children’s Fund
- Rainforest Trust
- City Harvest
- Campaign to Keep Guns Off Campus
- Sandy Hook Promise
- The David Lynch Foundation
If you have a nonprofit you already donate to, you can likely find it in Spiral as well.
Benefits of online banking for business
Choosing online banking is advantageous for most of the same reasons it is for an individual except probably even more beneficial.
Of course when it comes to business time is money and the ability to save you or your employee a trip to the bank means increased productivity in other areas that the business needs tending to. This may also help keep the cost of labor down for your business as well.
Another benefit for businesses is the ability to pay vendors more easily with an online banking service.
Just like with an individual, a business can also use online banking to set up automatic recurring payments to pay vendors.
In this way you can be sure to never forget to pay a bill for a service or product that is essential to keeping your business running properly and efficiently.
Also, the benefits of online banking to customers is considerable for most businesses. Many online banking services provide features that enable better integration of financial transactions into your business model.
Of course, the fact that online banking services are able to charge you less fees due to not needing to maintain a physical location is advantageous for a business as it is for an individual.
The less fees you have to pay for your business, the more profit margin you can take home for yourself.
How to find a good online banking provider
Now that you understand the benefits of online banking, you may be wondering what you need to do to find a good online banking provider.
When you do your research for options, make sure a potential online banking service does not charge any monthly fees.
Also, the provider needs to have all of the features you personally need which may include easy online bill payment options or special features for donating to good causes and charities.
- The benefits of online banking can make your life more convenient and hassle-free.
- You can save significant time and money by choosing to use online banking.
- The ability to easily monitor your account activities online can help you better manage your financial affairs in various aspects.
- Online banking will still allow you to have access to quality customer support, like Spiral.
- Spiral allows you to easily donate to your favorite charities and nonprofits through a streamlined and user-friendly mobile app.
- Online banking can help businesses operate more efficiently and effectively.
- Businesses can utilize online banking in order to cut unnecessary costs and enhance profit margins.