There has always been something fishy about banks. In order to use one, you must have money. And in order to have money, you must work (or be incredibly lucky). So, why is it that banks are only open during normal business hours, when everyone is working to make money to put into the bank, if only they could? Ah, but all that has changed. Online banking has revolutionized the way in which Americans handle their finances.
With almost 50 percent of Americans able to access broadband Internet, online banking has become increasingly popular. And with all major US banks offering online banking to customers for a nominal fee or at no cost, the challenge becomes developing user- friendly and secure formats that entice customers to use online amenities. Certain companies are even abandoning the brick buildings with chained pens in favor for the limitless frontier of the Web. ING Direct, specializing in mortgages and high-interest accounts, is a Web-based bank—no tellers; no waits; no juice. Virtual banks parlay savings from the lack of buildings, tellers, and paper transactions to consumers’ savings accounts.
Many Americans continue to eschew online banking for reasons of security, or because they view online banking as a technological hassle, replete with cryptic instructions and computer jargon. Banks, aware of these concerns, continue to enhance the services online banking offers. New security measures are constantly being adopted, as well as alerts to “phishing” schemes—where defrauders pose as online bank official in an attempt to confuse people into distributing their online banking security information. Anti-virus software will replace security guards, to thwart any hackers stab at violating the safety of your online banking account. Banks perfunctorily deal with security issues—if it’s not John Dillinger, it’s Kevin Mitnick.
The overall selling point of online banking appears to be the convenience factor. Online banking is a 24-hour-a-day option. No need to visit your local branch during your lunch hour. Another benefit of online banking is the automated bill payment option. When vacationing in, say, Barbados, online banking allows you to preset your account to pay those pesky phone bills on time. No fuss. Online banking additionally affords low mortgage interest rate alerts, stock quotes, and account aggregation. Online banking also adheres to the same federal regulations that long-line banks must follow. That means that your money is secured by the FDIC.
As more and more Americans become computer literate and as banks continue to pursue avenues of increased online security and user-friendly programs, online banking will become a matter of course. The lines will disappear. The juice will turn stale (if it wasn’t to begin with). The pens…the pens will remain nailed down. Online banking ushers in a more convenient and accessible approach to money management. Bouncing checks will be vestiges of the past; a time when consumers were unable to instantly view their account balance before approving a charge. And the money saved by avoiding the late fees for your cable bill will be put to good use—perhaps some decent juice.
By Jean-Pierre Lacrampe