The world is constantly becoming digitalized and more often than not you’ll find yourself asking – are online banks safe?
This is because even our finances have become as digitized as marketing, sales, and even networking.
However, when it comes to online banking, you want to be completely sure that you’re not a victim of a hacker or a cyber crime.
So, before we dive into the safety of online banking, let’s have a quick discussion about what is online banking.
What Is Online Banking?
Online banking are the facilities that traditional banks offer wherein you can save time by not having to queue up at the bank. You can manage your accounts, pay the bills, and even complete a range of other tasks.
Furthermore, there are some banks that do not even have traditional branches anymore. Almost all of their sessions are online. If it’s a bank which is completely online then there’s a good chance the fees and interest charges are lower as well.
These days online banks are becoming much more popular than traditional brick and mortar banks. The primary reason being that it’s effective and makes the entire process less complicated and the hassle is cut out.
Considering all the processes can be done from the comfort of your own home, it’s becoming increasingly popular amongst the new generation. Additionally, due to the rise in use of smartphones, almost everyone is shifting towards online banking. As a result of this change, online banks are gaining popularity.
Benefits Of An Online Bank
There are certain benefits of an online bank which help it achieve the popularity it has today.
Swiftness With Opening Accounts
Opening an account in an online bank takes a couple of minutes. This is by far a great improvement from that of a traditional account.
Even though direct deposits aren’t quite the possibility at online banks, the fact that they offer automatic transfers make the process easier. Therefore, you do not actually need to wait for the checks to arrive. You can have the money directly deposited into your account.
Online banks often give you the facility of depositing checks remotely from your electronic device. Moreover, these checks can help you earn interests faster and there is no need for you to pay for a stamp either. However, the catch is that you cannot deposit a large check at the same time.
Issues With An Online Bank
Here are some of the issues that persist with online banks and online banking.
Customer Service May Vary
Not all online banks have a swift customer service. As a result, you might not be able to get hold of a representative as easily as you could at a traditional bank.
Challenges With Withdrawals
It might not always be possible to make larger withdrawals from online banks’ ATM the way you can from the branch of a brick and mortar bank.
If the website is down, then you can’t really do much other than wait for it to come back up again. So if there’s an urgency, and the online bank is experiencing technical glitches, you’ll be in quite the rough spot.
Are Online Banks Safe?
Coming to the primary question, the point is yes, online banks and online banking are safe. However, every pro comes with a con. Hence, at the end of the day we are responsible for the safety of our finances.
Therefore, there are certain options that you should make use of to keep your finances protected.
Change Your Password Regularly
It’s a good practice to constantly update your password. This reduces the chances of being hacked.
One of the popular methods of ensuring that your finances are protected is by authentication. This is nothing more than a two step process which is required every time you wish to enter your online bank account.
You must always have the alerts turned on for your online banking services. This is a way of keeping track of your transactions. It has been quite helpful for identifying any unauthorized transactions.
Consider Using A VPN
A virtual private network will prevent your IP address getting tracked. You should have one set up one all the devices you use for online banking.
Additionally, make sure that whenever you’re trying to check off all the boxes for ‘are online banks safe?’, maybe check with the bank for a verbal password authentication. This is much harder for hackers to crack into.
Should You Use Online Banks?
If you’re finding yourself comfortable with the pros and cons, then you should consider opening an account at an online bank.
There are chances that you might never even face an issue. However, if you do, be rest assured that the turnaround time for these banks to fix the issue isn’t a huge span of time.
Now that you know the answer to – are online banks safe – if you wish to open an account, then now is the chance!