Since 1995, bank customers have increasingly used online banking to keep track of finances and bank on the go. The change has had a lasting impact on society as more and more people depend on the Internet for daily needs. Online banking has not only changed individual people’s lives, but the banking industry as well.
Customer Service
The biggest difference in online banking and physically going to the bank is customer service. Some online banking websites provide chat customer service, but over all it is you doing your own banking. You must direct money to different accounts and pay bills from your own computer by clicking the mouse yourself.
Face-to-Face
Banking online is one more way that people are relying more on themselves and less on face-to-face interaction. In a way online banking allows people to be more reclusive and more dependent on computer technology. Experts believe face-to-face interaction is one of the most important parts of any business- including banking. When a customer is not physically present before a teller, the customer’s need often takes a back seek. This means customer service is not as superior as it may be when the customer is physically present. (Times Online)
Jobs
The more people turn to online bank the less demand there will be for bank tellers. Many banks are persuading customers towards online banking and cutting back on bank tellers in branches. When banks have to hire less bank tellers their profits are higher because they do not have to pay additional employees. This overall effects the economy causing higher unemployment rates as well because there are less jobs. (Federal Reserve)
Convenience
Online banking gives customers a freedom to bank in ways they couldn’t in the past. Banking and bill pay can be done from anywhere in the world that has Internet connection after the customers logs on to the website. Freelance contractors can be paid immediately via online banks such as PayPal. When a job is completed the person can send money via the Internet to pay for the service. People can also work for others across the world and still receive payments in their currency because of online banking.
Efficiency
Customers using online banking can keep better track of their finances and more frequently. Online banking sites are updated multiple times throughout the day allowing the customer to see their account and any changes made to it throughout the day. Many banks also offer mobile alerts which allow customers to see their balance throughout the day or alert people of any unusual activity on the account.