If you are considering switching to an online banking account, such as MoneyLion, there are several factors that should be considered beforehand in determining if you are a good candidate. Weigh the following seven pros and cons before committing to switching banks!
Online banking is definitely more efficient. You no longer have to spend time out of your day going to your bank wasting gas and time. Instead of finding your physical bank to deposit a check, you can snap a photo and shred the check at home, in seconds. Save resources by trying online banking.
The beauty of the technology is that it is not tied between the walls of a typical brick and mortar bank. Take your banking business with you wherever you go, whether it’s on your lunch break at work or from the comfort of your sofa.
At any time
Again, standard banking limits are the selling points of online banking. Gone are the days of waiting on your bank clock, waiting for business hours or not being able to see your accounts after work. This availability puts power in the hands of bankers, instead of waiting for a cashier to be at their job.
A large draw towards online banking is not a minimum requirement for your balance. This applies to most online banking, which makes it much easier for those who do not currently have a stable income.
No ATM fees
Along with several free online banks, there are financial services that offer free ATM accounts. For example, MoneyLion is a money saving service that keeps your money in your account. MoneyLion is available at over 55,000 free ATMs around the world, which means no ATM fees.
Unrelated to credit score
Often online banks do not discriminate against low users FICO (NYSE: FICO) credit ratings. They will still allow their users to take out low interest loans, deposited in seconds!
Finally, online banking services often come with reward systems, such as offering cash back rewards to their customers.
Customer service through online banking is often handled by robo advisers, which means less human contact in person.
No physical bank
Not having a physical bank can confuse some people, who prefer a stable location rather than the Internet to hold their funds.
No access to cash during banking operations
Because there isn’t a single place on the ground to reach, you have to look for money at an ATM instead of getting it from a cashier on your bank visits.
Since online banking is online, it is vulnerable to website outages. There is no backup branch that you can access, and customer service may be down as well.
It is possible that hackers will gain access to your account by sending emails to obtain your account information.
Other financial products
If you have other financial products than a checking account or savings account, like loans, according to an Avoka survey of digital sales of banking products, only 24% of products are accessible from online banks. .
Online banking requires you to be comfortable with browsing on a cellular device! If browsing an app is outside of your tech area, you might not be a good candidate for online banking.
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