The future of Online Banking

Author: Carletta Wellman

Online banking business has boomed over the last several years as more and more people discover the benefits of internet checking. This phenomenon is not going anywhere in the near future. It has increased the ease with which people do their banking and it is certainly making our lives a lot easier. In the future you should expect to see online banking become even more inclusive.

Things like free echecking, higher rates on CDs, and access to automatic bill pay already exist, but it is very possible that as banks learn just how much internet banking helps both the bank and its customer they will adopt even more measures to make doing your banking on the internet even more beneficial.

For starters, online banking cuts down on bank expenditures. This allows banks to fulfill the same functions without having to hire more employees. In the long run, this mixture of increased business with fewer employees will save banks a lot of money. Once this is realized, we will begin to see even more features become automated. For example, money market accounts might see their interest rates rise. Money market accounts are basically a mixture of a checking account and an investment. Money market accounts currently get a very small return on your investment, but you can expect this number to go up in the future, especially once the economy starts performing better. Banks will want to have better access to investing your money in order to guarantee them larger profits and money markets are one easy way to do so.

Also, you can expect to see more flexible CDs and different denominations. Currently, some banks offer online CDs, but in the past CD guidelines have been really strict and have scared away a lot of people. Many banks have a six month minimum in which your money will be invested in the bank. If you withdraw your money before the end of the contract, you will have to pay a penalty and this can end up losing money for you. Expect to see smaller CD time lengths, like one or two months.

Finally, you will see online banking become more user friendly. Already banks are starting to create apps that can let you bring your banking with you on the go. From your smart phone or your tablet computer, with a few clicks and a typed in password, you can make sure that your account is always up to date and where you need it to be. Most of the major banks now offer such a service, but this is something that you can expect even smaller local branches to start taking advantage of. Creating such an app is really easy and it saves banks a lot of man hours, thus cutting down on their overall expenses.

The main theme that you will discover as banking progresses into the future is that customer service is prized. Banks know that you can take your money anywhere and that they are competing for the privilege to guard your money for you. Expect this to influence future online banking practices.

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About the Author
This article was written by Carletta Wellman, a small business owner and tech enthusiast. Carletta lives in Massachusetts, with her husband, where she operates her own business. She is interested in technology, business banking, checking account, mortgage bank and cooking.