Top 10 Great Benefits of Online Banking

by Gily Tenorio on November 29, 2012

in Banking


What are the benefits you can get from online banking? Almost all of the banks operating these days offer online banking to their customers as one method of banking. It changes how customers conduct their banking transactions.

Online banking is also known as Internet, web and remote banking since it is a system of banking using the Internet. In this post, I’ll use these words interchangeably so don’t be confused about the usage of these words. Even you’re very far from your bank or you’re living and working abroad, you can still manage your bank account and check its details using Internet banking.

It changed the way how to make banking transactions and replaces the traditional banking method that has been in the past decades. Before, you are required to visit your branch before you can send or transfer money to other people’s account or even to your own bank accounts.

By using remote banking, you can make transactions even in the comfort of your own home or office. There are many great benefits you can get from having a web banking account. If you still don’t have one, I think you are losing the convenience and the great benefits of anywhere banking.

How Online Banking Works?

The principle of online banking is much the same as the traditional way of banking. The only difference is that you do transactions using the Internet.

Normally, you do the traditional way of banking by visiting your branch and then you make transactions with the help of bank tellers and employees. On the other hand, when you do net banking, you use the Internet to access your bank account and make transactions by your self using your own user name and password to log in to your account.

The log in details of your web banking will be always provided to you after your application is approved. Without these log in information, you cannot make banking transactions via the Internet.

Like what I mentioned earlier, before you can use Internet banking, you need to apply or enroll your bank account by going directly to your branch or through online application. Most banks now offer web application so you can enroll for their online banking facility anywhere you are in the world. Though, you need to furnish some identifications and documents before they can approve your application.

Things You Need to Do Online Banking

Online banking is only possible if you have the requirements needed. Here are the things you need before you can use your own Internet banking.

1. Bank Account

You need a bank account like a savings or checking account to be able to use Internet banking. You can apply your existing bank account through walk-in or online application. You have to visit the website of your bank to learn more about this.

On the other hand, if you will open a new bank account, you can apply for remote banking at the same time when you open a new account. Usually, in the new account application form, you will opt-in whether you want to apply for online banking or not.

2. Computer with Internet connection

Ok, it is not advisable to use computers in Internet cafe due to security reasons so it is better if you will use your own computer. Make sure to install anti-virus software for added safety while accessing your bank account online.

3. User name and Password

You need to know your user name and password of your net banking account before you can use it. You can get this information after your Internet banking is approved.

Internet Banking

What Do You Get From Online Banking?

In the past, Internet was not invented yet so bank customer’s information are normally placed in file cabinets or bank’s computers. If you want to access or know your bank details, you need to go directly to your branch and request what you want to do.

However, it is not the scenario anymore these modern days because of the invention of Internet and high-speed computers. Through these technological advancement, we can now do online banking via the web. You can now check the details of your bank account where ever you are.

So why do you need to apply or enroll for a web banking account? What are the benefits that you can get from it? Here are the top 10 great benefits of web banking.

1. Check your account online

Checking your account online is one of the best benefits of having an Internet bank account. Through it, you can access your bank account 24 hours a day and seven days a week from anywhere in the world provided you have Internet connection.

2. Send or transfer money

Before Internet was invented, you cannot send or transfer money by your own. You need to visit the bank to send money to other people through direct deposit to other people’s bank account.

Nowadays, it is not the case anymore since you can transfer money through your web banking account. However, you will be required to enroll other people’s account to your own web account before you can use this feature.

3. Pay bills

Paying bills is very helpful and convenient. You don’t need to go to payment centers only to pay your Meralco or water utility bills because you can do it online through your Internet banking.

Me and my wife pay our bills using our BPI express online. It is really convenient and easy to use. There are lots of bills that you can pay such as electricity, water, phone, tuition fee, golf club membership, Internet service, insurance and many more.

4. Buy Investments

It is possible now to buy investments online. You can invest now in stocks, mutual funds, bonds or UITF through your web banking account.

Some banks are offering now this good feature so that it will be easier for more people to invest. For example, even you’re outside the Philippines, you’ll still be able to buy mutual funds as long as you have net banking which you will use for purchasing.

5. Banking Transaction History

If you want to know your banking transaction history, it will be easy and you can retrieve it for the past 3 months. You can easily learn and know where did you use your money using the history of your account.

There’s also a limitation here because it is impossible to see your transaction beyond the past 3 months. However, most banks are providing statement of account and deliver it to your residence via registered mail.

6. Online Statement of Account

Most banks are becoming environment-friendly and joining the whole world in fighting global warming and climate change. Because of these reasons, most banks are encouraging their clients to switch to online statement of account rather than sending paper statement of account to their customers.

In a way, this is good idea and will help the banks to cut expenses on papers and postage at the same time, reducing waste. If the client wants to put his or her statement of account in paper, he can print it by himself.

7. Privilege of Internet Products & Services

Most banks offer online users products and services that can be availed only if you have net banking account. This is a good advantage since you have access to this kind of stuff which you cannot avail outside.

8. Quick Update of Profile

Another benefit of having a web banking is you can quickly update your personal information like your home address, email address, telephone numbers and many more.

Almost all banks offer this kind of feature when you visit or log in to their remote banking. It will not be hard to change your info and you won’t need to visit your branch.

9. 24/7 Customer Service

If you have a problem of logging in to your account, you can call your bank for assistance. Most banks have 24/7 customer assistance to help their clients for any problems related to their bank account.

The means of communication are varied such as email, telephone, mobile phone and text messaging system. Most banks are good in responding to their client’s problems, though, few are slow to take actions.

10. Online Safety

You don’t have to worry about the security of your bank account whenever you use web banking because it is very secure. With the high technology of most banks being employed to their system, the level of safety against hacking and fraud is very high.

You are the only one who can log in to your account with the provided user name and password when you applied for a remote banking account. Aside from this, some banks provide security card which their clients can be used for additional security when transferring or sending money.

Wrap Up

Online banking is a good and helpful system for all people who wants to manage and use their bank account anywhere they are at anytime. However, you need to enroll first your bank account before you can enjoy this service from your bank and this is not difficult to do.

This post has listed the top 10 benefits that you can get from owning an online banking. But this is just some of the few things that you can get. Do you have anything else to add in this list that is not included here? Just leave your tips below. Thanks!


About the Author:

GilGil Tenorio is a blogger, a husband, a father, and an active Christian. He likes playing guitar, C.S. Lewis, Plants and Zombies and NBA. Follow him at Facebook, Google+, YouTube and Twitter. Thanks!

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