While many people still use banks that do business at physical branches, there are a number of new banking alternatives emerging that are primarily or even exclusively online. Branchless and mobile banks often offer appealing features, including reduced or nonexistent banking fees, which make them an attractive option to a number of potential customers. However, for customers who are used to traditional banking, it can be tricky to decide whether or not it’s worth it to make the switch. Anyone who has never used online-only or branchless banking before may find it to be a different experience than what they’re used to, but it may be worth transitioning depending on the perks being offered. If you’re new to your online banking platform, keep reading to learn more about how to adjust.
Why switch to an online banking platform?
The strength of a bank’s online platform is of the utmost importance when dealing with a branchless bank. One example of a branchless bank garnering some attention is Tangerine, which made headlines as the official bank of the Toronto Raptors. Despite being a primarily online bank, Tangerine is still full service. They even offer a Tangerine credit card, known as the Tangerine Money-Back card. The Money-Back card is one of the best credit cards available, with no annual fee, and 2% cash back in two out of 12 eligible spending categories and 0.5% cash back on top of that on all purchases outside of those eligible categories.
If you’re used to going to a physical branch, a branchless option like Tangerine may require an adjustment, but the convenience and security are unmatched. It may not seem like much, but over time, the lack of fees and bonuses provided by products like the Tangerine Money-Back credit card can add up. In a post COVID-19 world, many customers also appreciate the cleanliness and safety of branchless banking and not needing to go to an indoor, confined space to take care of their business.
Can you pay for services using your online banking platform?
If you run a business or do any work on the side, you’ll likely to need to send and receive payments frequently. The great news is the majority of online banks offer robust features enabling you to send money person-to-business. You can pay your rent, repairman, and even your commercial videographer all from your online banking platform. Being able to handle bills for everything from web design to commercials to product videos without leaving your office can be a useful convenience for a growing business. Finding businesses where you can receive all these services in the same place should be a priority for any business owner.
Being able to handle all your transactions from an app on your phone or through your web browser makes it easy to track spending and manage money from the comfort of your home. Many people haven’t needed to set foot in a traditional bank in years, so there’s no need to pay fees or accept fewer perks just for the benefit of access to an in-person branch. Mobile banks have also become increasingly popular with younger customers.
What are other benefits of online banking?
While most banks still rely on physical branches to do a majority of their business, online banks offer a great user experience and a number of perks that make them a worthwhile alternative for many customers. These perks can include elimination of fees, higher interest rates on certain types of bank accounts, and access to unique credit cards with their own rewards. In many cases, you can even connect your credit or debit accounts to popular mobile wallets, like Apple Pay, Samsung Pay, and Google Pay. If you can’t remember the last time you went to your bank branch, it’s worth considering if a switch to a branchless bank with an online banking platform would be the right move for you or your business.