Online banking, what does it bring you?

Online banking that offers its services over the Internet is increasing its activity towards users through some specially designed products to hire them for this marketing model. But is it really worth opting for this type of online banking? While they offer some proposals increasingly aggressive, it is not suitable for all types of products, especially those that require greater physical contact, with the need to go to the branch.

Where is it more profitable to formalize operations? It is above all in savings products where the most competitive offers are generated through a series of proposals that raise profitability to just over 0,70%, through promotional deposits or for new customers. That is why it is not surprising that online banks can find offers of this type that substantially improve the conditions on the impositions of traditional banks, and that can be subscribed for periods not excessively long, between 6 and 24 months approximately.

They also usually improve conditions Regarding the benefits generated by these models: contributions that are not so demanding, are more convenient to contract and offer total liquidity to depositors. Another product that is also profitable to subscribe through these channels are savings accounts, in their various formats. They are more agile and are hired without expenses or commissions and with the possibility of expanding their advantages based on the proposals made by each entity.

More competitive savings products

They even present more generous offers for direct debit payroll, which in most of the times translates into exemption from commissions and expenses for its management or maintenance, an increase in its profitability, or simply the advance of salary among other services. To the point of benefiting if you are going to subscribe any of these products, regardless of the bank with which you are going to establish business relationships.

Instead, where there is a greatest deficiency is in personal and mortgage loans. It is true that they have them, but their offer is not as extensive and plural as through traditional banking, generally limited to more generic financing channels. And in any case, they are marketed with a slight improvement in the contracting conditions.

Regarding investment products, it should be noted that have a specialized service to operate with the stock market, investment funds or other products derived from equities. But if you are going to operate with them, you must know that in general they do not have better tools to operate with the financial markets, if they are compared with the conventional offers of the large and medium-sized banks in our country.

Trading in the financial markets

On the other hand, they do not offer excessive offers to operate with equities, and many of their proposals are basically limited to transfers of shares and investment funds of another entity as a starting point for their stellar promotions. In short, they offer more simplified products in which the exemption from commissions and expenses in its products is its main bet for new customers. Based on this premise, online banking develops its own designs so that they can adapt to customer profiles and you can operate from home. Because in fact, the convenience to carry out equity operations is one of the main qualities of online banking.

Is it convenient for you to operate with an online bank?

Like any system, online banking has a series of advantages and disadvantages that you should analyze so that you can discern whether it is convenient for you to be a client of an entity that has these characteristics. And that basically generates the following advantages that we will expose you below.

• Produces a greater time savings since you can operate and contract the products at any time and day, since their online offices do not close, and therefore their clients should not be attentive to the business hours of their offices to formalize their operations.
• Online banking generates lower management costsHence, their proposals are more profitable. As a result, maintenance costs can be eliminated or lowered and commissions are more affordable for all customers.
• This kind of banking can be used in all kinds of situations, on vacation, from abroad or to operate at the most unusual hours when branches are closed. Endowing with a greater flexibility to operations and customer movements.
• Your banking possibilities cover all types of operations, from subscribing a checking account to formalizing a tax, without forgetting the operations to invest in equities, and other products in the financial markets.
• Through the implementation of new technologies, it is possible to access the mobile banking service or other technological tools, while you are on a terrace, or from the beach on your vacation.
• One of its characteristics is transparency Since by subscribing the services online, it forces the conditions and contracts exposed on the web to be exposed to you clearly and simply, even more than through a physical bank.

Disadvantages of online banking

But not everything is beneficial to your interests as users in online banking, far from it. You will have a series of limitations that from the first moment you will have no choice but to assume. And come to the conclusion if it is worth it for you to establish relationships with this system in banking. Only you, and your profile as a client, will depend on the decision you make from now on.

• Relationship channels decrease that you have as a client with your financial institution, without being able to regularly resort to a physical office to raise your problems, and where sometimes your only interlocutor is the bank's website. Or in the best case a consultation over the phone.
• People with less financial knowledge have more problems to contract their products when not having a mentorship to channel your investments or develop your savings products. With the risk posed to them in their most frequent operations.
• Investors have an instrument to formalize their investments, but in many cases is more incomplete than through traditional banking, even with fewer investment proposals or with more limited products.
• The disadvantage that usually worries the user the most is that referred to the Internet operating safety, which may imply some risk in their banking operations and, which in specific situations invites them to desist from their intention. Especially from computers you don't trust.
•  Traditional banking offers its clients deposits with more profitability than advertised, among other aspects, because they are products that can be negotiated between both parties. Thing that you will not be able to develop through Internet banking.
• There are certain operations in which physical presence is required at the bank branch: to exchange currency, to sign a bank promissory note, or simply to renegotiate your credit. In these cases, you will have no choice but to continue with traditional banking models.

Banking operations that you cannot perform

In any case, there will always be some operations - less and less - that you will not be able to develop through the new technological channels. And that it is convenient that you know in advance before opting for this management model. And that can limit you when it comes to improving a banking product, or simply attend to its management. These are some of the situations that can happen to you if you are an online customer.

1. Renegotiate your loan (personal or mortgage) in a more personalized way and, in any case, it is always better formalized through the bank's own branch, or directly with its managers.
2. Carry out certain banking operations that require the presence of the client in the office: currency exchange, the signing of a document or the delivery of documentation to access any of its products.
3. When you opt for a more personalized service that has as interlocutor a manager of the financial institution and that requires a close relationship between the two. Not surprisingly, direct communication will be more necessary, and therefore, effective.
4. In operations that a change in their headlines is necessary It is more advisable to go through the bank offices so that this process can be formalized in the best possible way and without any problem that muddies the banking movements.
5. Request a change in your financing fee or in the monthly payment of your credit card, since for this you will have to better contact the heads of those departments and indicate your real intentions to see if they can be fulfilled by the entity.
6. For formalize any claim or complaint about a banking service, it is best to go directly to the bank (or by phone) to solve the problem as quickly as possible. Not surprisingly, you will be able to explain more clearly the kind of incidence you have.

Combine conventional banking with online

Perhaps the model that interests you most at the moment is the intermediate one, combining the two systems. Not in vain, you can benefit from the contributions of each of them. In addition, practically all banks have both models enabled. With what it will not be difficult for you to achieve the objectives. And contract banking products, depending on the system that is most beneficial to you at all times. It may be the most profitable operation for your interests.