5 Benefits Of Mobile Banking You Must Know Today!

Banking online has become an accepted norm of monetary transactions nowadays. It provides you with the ease to check account, make online payments, and transfer funds between accounts. Internet banking apps is particularly useful for perpetually short of time Indians who cannot visit the bank physically.

Online banking also offers hosts of non-banking transactional facilities that are pretty handy. It has become the most convenient form of banking, not just amongst the Indians but around the world. E-banking aims to provide faster services to the customer at lower costs. Apart from the financial operations, customers’ communication with the banks have fastened.

The progress of net banking began with an automatic teller machine and later developed into banking online.

Definition:

Online banking, also known as e-banking or net banking, is a service offered by banks and financial institutes. It enables customers to do banking through the internet. There is score of facilities available at the customers’ perusal. It also helps banks make benefits by advertising and promoting the new features which reach millions of people at one go. However, all this requires a good internet, which is scarcely available in rural areas. The best part is you can access banking over smartphones, also called as mobile banking apps.

Internet banking uses three modes for money transfer purpose – such as Immediate Payment Services (IMPS), National Electronic Fund Transfer (NEFT), and Real-Time Gross Settlement (RTGS).

Importance:

  • Saves time that otherwise gets spent in long queues outside the bank branches
  • Offers ways to do international banking
  • Provides banking facilities 24*7 from anywhere
  • Delivers appropriate cash management facilities for internet optimisation
  • Provides convenience concerning capital, labour, timing all the resources, for making the transaction
  • Banks may compete in the new market to attract new customers and thereby grow their market share
  • Offers safety and security to account holders through state-of-art encryption and security technologies

Benefits:

  • Convenience: It is the most important benefit of online banking app. Making transactions right at the comfort of home or office by the click of a button is a facility no one would want to let go. Keeping track of the account through the internet is quicker in comparison to going to the bank. Even operating non-transactional facilities like such as ordering chequebook, updating accounts, enquiring about interest rates, etc. are simpler than calling the representative for the same.
  • Better rates: The banks gain significantly through net banking as it requires lesser effort from their end. There is no need to acquire a larger office space and employ more staff to deal with customers queries. This way, banks can handle their finances well. Owing to high savings, customers can earn higher interest rates on deposits and lower rates on loans. Some banks encourage minimum or no deposit accounts for banking online. They also charge low penalties on pre-withdrawal of fixed deposits.
  • Services: Technology has made it easier for customers to access a host of facilities online. These include financial planning capabilities, functional budgeting, loan calculators, investment analysis tool, and equity trading platforms. Some other banks also offer online tax forms and tax preparation services.
  • Mobility: Technology has gone a step further with mobile banking apps. Offers unlimited mobility for the customers, who can handle the financial tasks on the move.

Environment-friendly: Considering you will receive statements over emails or can download them in PDF form, the usage of paper is nil. This way, online banking keeps the environment pollution under check as well.

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