Why Do You Bank Online?
Posted: May 24th, 2010 | Author: Joe | Filed under: Saving | Tags: Banking, online banking, online banks, online savings, Saving | No Comments »I stumbled on this article from BankRate: Should you bank online? and it got me thinking. Why do the people who bank online do it?
The author of the article makes some good points about why customers prefer online banking, but the one I would have thought was the main reason is not mentioned. He covers topics like Convenience vs. service, and the flexibility of banking online. He also states that this is the first time in history that “more consumers prefer to do their banking online rather than at a branch, an ATM or over the phone.”
But here’s the part I’m not sure I buy:
“This marks a watershed change,” says Nessa Feddis, senior counsel for the bankers’ trade group. “It tells us that … more consumers prefer the speed and convenience of conducting their banking transactions on the Internet.”
I guess it depends on how you define “banking online.” For example, if they’re looking at only brick-and-mortar banks that offer online banking along with physical branches, ATMs and phone banking, then I think you can conclude that those people prefer the speed and convenience.
But if you’re also counting customers of Internet only banks, then I think you need to consider the interest rates those banks pay as being a factor. I know that’s the main reason I use Internet banking. How about you?
