Revolutionizing the Banking System With New Online Technology

November 14, 2014

The face of banking as we know it is changing, and that’s a good thing. How many times have you rushed out of work to get to the bank before it closes? How often do you find yourself needing to make a transaction on a Sunday afternoon but have to wait until Monday morning? If you use a traditional brick and mortar banking system, chances are you hit these snags fairly often.

Fortunately, new online technology is making it possible to bypass the inconvenience we so often experience with traditional banking. If you’ve never considered using an online bank, you might not be aware of the many ways it outshines the older banking system.

The Evolution of the Banking System

As the Internet became more widespread in the 1990s, banks began exploring ways in which they could use it to deliver limited services to their customers. Financial institutions quickly discovered that clients enjoyed the convenience of Internet banking, so it was imperative to expand their online presence by optimizing their websites to offer even more services.

The next logical step was to completely do away with traditional brick and mortar banks in favor of those that operate exclusively online. Since it costs less to run a virtual bank, these institutions were able to pass their savings on to their customers in the form of lower service fees or lower loan costs. Now, online banks offer customers a complete array of banking services along with several other benefits.

Convenience of Mobile Banking

Banking is a welcome addition to the multitude of daily tasks we like to carry out on our smartphones and tablets. With 51% of adults in the U.S. already banking online, it should come as no surprise that 32% of those adults are using mobile devices to take care of their banking business.

The surge has prompted many banks to perfect mobile apps that allow customers an easy, safe way to check balances, pay bills, and transfer money right from their smartphones. This high level of convenience is a major selling point to consumers, while banks benefit from lowered expenses.

Money Transfers Made Simple

Online banking makes money transfers easy and quick. We sometimes don’t have the luxury of waiting for a check to be received and processed, especially when it comes to paying bills. Online money transfers are nearly instantaneous and only take a day or two to process, making it easier to ensure your bills get paid on time. Additionally, a check in the mail can get lost or stolen while in transit. An online money transfer is safe and secure, complete with confirmation numbers and a record that the payment was made in the first place.

Money transfers aren’t just for paying bills. Using a service such as Ria Money Transfer, virtual banking customers can move money from their accounts to a relative or friend with just a few simple clicks.

A Personalized Customer Experience

Financial institutions are using big data to better understand their clients’ behaviors and needs in order to deliver the best services and solutions possible. By studying users’ social media habits and other digital channels, banks can get a great idea of what their customers would like to see from their banking service.

With a more personalized customer experience, clients are poised to get exactly what they need from their online banks. For example, through analyzing information obtained through social media feeds, online banks could deduce that a portion of their customers would benefit from an easy way to budget their finances. They could then include an online budgeting tool on their website to help clients with financial planning.

While traditional banks probably won’t be disappearing anytime soon, the new online technologies surrounding virtual banking have certainly revolutionized the industry in a positive way. As customers’ needs and preferences change, so too must the banking industry.

Virtual banking systems allow users to enjoy the convenience and mobility they’ve come to expect from countless other online services, along with lower service fees and added invaluable financial services.