7 Pros And Cons Of Online Banking

If you have been considering making the switch to an online bank account, such as MoneyLion, there are several factors to consider beforehand to determine if you’re a good candidate. Weigh out the following seven pros and cons before committing to changing your banking!

The Pros

More Efficient

Online banking is undeniably more efficient. You no longer have to spend time out of your day to drive to your bank, wasting gas and time. Instead of finding your physical bank to deposit a check, instead, you can snap a picture and shred the check at home, in a matter of seconds. Save resources by trying out an online bank.

Any location

The beauty of technology is that it is not bound between the walls of a typical brick-and-mortar bank. Take you banking anywhere you go, whether its during your lunch break at work, or from the comfort of your couch.

Any Time

Again, the limits of standard banking are the selling points of online banking. Long over are the days of waiting on your bank’s clock, waiting for opening hours or being unable to review at your accounts after work. This availability puts the power in the bankers’ hands, instead of waiting for a teller to be at their job.

No Minimums

A great draw to online banking is no minimum requirement for your balance. This applies for most online banks, making it much easier for those who don’t have a steady income currently.

Unrelated To Credit Score

Often, online banks won’t discriminate against users with low FICO FICO credit scores. They will still let their users take out low-interest loans, deposited in seconds!

Rewards

Lastly, online banking often comes with rewards systems, such as offering cashback for their customers.

The Cons

Customer Service

Customer service through online banks is often run through robo advisors, meaning less in-person human contact.

No Physical Bank

Having no physical bank can disorient some people, who prefer a steady location instead of the internet holding their fund.

No Accessibility To Cash While Banking

Because there is not one grounded location for you to reach, you have to seek out cash from an ATM instead of getting it from a teller during your bank visits.

Technology Dependent

As online banking is online, it is vulnerable to websites crashes. There is no backup branch that you can access, and customer service might be down as well.

Fraud

There is the possibility of hackers accessing your account by sending emails to get your account information.

Other Financial Products

If you have other financial products other than a checking or savings accounts, like loans, according to a survey by Avoka on digital sales of banking products, only 24% of products could be accessed from online banks.

Technology Skills

Online banking requires you to be comfortable with navigating a cellular device! If navigating an app is out of your technological realm, then you may not be a good candidate for online banking.

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