Online banking, what does it bring you?

Online banking that offers its services through the Internet is increasing its activity towards users through some mostly designed products to hire them for this marketing model. But is it really important to highlight opting for this type of online banking? Even when they offer increasingly aggressive proposals, 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 fundamentally in savings products where the most competitive offers originate through a series of proposals that increase profitability to just over 0.70%, through promotional deposits or for new customers. This is why it should not be 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.

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

More competitive savings products

They even present more generous offers for direct debit, which in most cases translates into exemption of commissions and expenses for its administration or maintenance, an increase in its profitability, or basically the advance of the 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 determine business relationships.

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

With regard to 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 should 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 for trading equities, and many of their proposals are limited simply to transfers of shares and mutual 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 adapt to customer profiles and you can operate from home. Because effectively, 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 must analyze so that you can discern if it is convenient for you to be a client of an entity that has these characteristics. And that simply generates the following advantages that we will explain to you below.

• Produces a greater time savings since it can operate and contract the products at any time and day, since its online offices do not close, and therefore its clients should not be attentive to the business hours of their offices to formalize their operations.
• On line bank generates lower administration costsHence, your proposals are more profitable. As a consequence, maintenance costs can be removed or lowered and commissions are more affordable for all customers.
• This type 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. Endow with a greater flexibility for operations and customer movements.
• Your banking opportunities covers all types of operations, from the subscription of a current account to the formalization of a tax, without forgetting the operations to invest in shares, and other products in the financial markets.
• By implementing new technologies, it is feasible enter the mobile device 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 to the online services, it forces the conditions and contracts exposed on the web to be clearly and simply exposed to you, even more than through a physical bank.

Disadvantages of online banking

But not everything is beneficial for 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 take charge. And come to the conclusion if it is important for you to highlight determining relationships with this system in banking. Only you, and your profile as a client, will depend on the decision you make from now on.

• Linkage channels decrease that you have as a client with your financial institution, without usually being able to 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 by phone.
• People with less financial knowledge have more problems to purchase their products when not have a mentorship to channel their investments or develop your savings products. With the risk that it supposes them in their most frequent operations.
• Investors have an instrument to formalize their investments, but in several cases is more incomplete than through traditional banking, even with fewer investment proposals or with more limited products.
• The disadvantage that most worries the user is related to the Operational security on the Internet, that it may imply some risk in your banking operations and, that in specific situations invites you to desist from your intention. Especially from computers you don't trust.
• Traditional banking offers its clients deposits with more profitability than advertised, among other aspects, due to the fact that 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.: change currency, sign a bank promissory note or basically renegotiate your credit. In these cases, you will have no choice but to continue with traditional banking models.

Banking that you cannot perform

Whatever the case, there will always be some operations, less and less, that you will not be able to develop through new technological channels. And that is convenient for you to know in advance before opting for this management model. And that can limit you when improving a banking product, or basically attend to its administration. 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 those responsible.
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 enter 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 need a close bond between the two. It should come as no surprise that direct communication is more necessary and therefore effective.
4. In operations that a change is needed in their headlines It is more advisable to go through the bank offices so that this procedure can be formalized in the best possible way and without any problem that muddies the bank movements.
5. Request a change in your financing rate or in the monthly payment of your credit card, since for this you should better contact the heads of those departments and indicate your true intentions to see if they can be fulfilled by the entity.
6. In order to formalize any claim or complaint about a banking service, it is best to go directly to the bank (or by phone) to fix the problem as soon as possible. It should not surprise us that you can clarify more clearly the type 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 will be able to benefit from the contributions of each of them. At the same time, practically all banks have both models enabled. With what it will not be difficult for you to obtain the objectives. And contract banking products, depending on the system that most benefits you at all times. It may be the most profitable operation for your interests.