With all the attention online banking has received in the last
couple of years, it seems there are new online banks popping up
everywhere. Users are choosing online banking for its ease and
convenience. And while issues of identity theft are important factors to
consider with online banking, it has not stopped people from utilizing
the Web to streamline their finances.
Even
more importantly, recent studies suggest that Internet banking doesn't
just make life easier, customers who choose it seem to be more satisfied
with their bank. The two areas of greatest satisfaction fall in the
categories of the convenience online banking provides and the ability to
pay bills online. One recent industry report indicated that
satisfaction with online banking services is up 5.5 percent. The report
also shows that users who pay their bills online experience not only
satisfaction with the ability to bank online, but with their specific
banking institution, suggesting users have strong confidence in their
bank's ability to secure identity. In fact, similar reports have also
shown that those who pay bills online retain their business longer at a
particular bank than those who do not use a bank's online service.
As
a result, banks are seeing tremendous growth in online service. One
major commercial bank cited that in 2004, there were 3.4 million
customers paying bills online, followed by an increase to 6 million
online bill payers just a year later. Many bankers believe those kinds
of increases are the result of services such as online bill pay that
customers find most appealing.
Many first-time users come to
online banking to access their account information such as account
balances and check activity. That is followed by the ability to transfer
funds between accounts. And finally, many users then move into online
bill pay. Perhaps they start with paying a few utilities online at the
utility's website. They may then look into the online bill pay service
offered by their bank. Now, banks are seeing more and more users
receiving bills electronically.
Yet for some bank customers,
concerns about identity theft keep them from trying online banking.
Interestingly, their counterparts who do use the Internet to conduct
banking do not seem to hold those same perceptions. Most are satisfied
with the level of online security offered by their banks. The challenge
then for banks lies in the continued education of their customers to try
online banking and discover for themselves the high level of security
in place at most banks. Once those customers give online banking a try,
perceptions of risk seem to decrease, reports indicate. Surprisingly,
these same reports discovered that today's security measures put in
place by PC users and banks have many ID thieves targeting potential
victims offline.
The following are a few tips to consider when choosing an Internet bank account:
1.The
Annual Percentage Yield (APR) may be higher with Internet bank
accounts, and therefore one of the most important attractions for those
looking for a high yield. Conducting transactions online may save the
bank money, and those savings may then be passed on to the online
customer, most often in the form of higher savings rates.
2.Ability to access money. Online users need to consider what steps are involved in accessing their money in an online account.
3.Ability
to link accounts. Users want the ability to link various accounts to
one another, making it easy to move money seamlessly between online bank
accounts.
4.What types of additional services are available?
Potential users should be interested in not only banking online, but
purchasing CDs, applying for a mortgage, and paying bills online.
5.Security. Users must confirm that their online bank is FDIC insured and that the security system can be trusted.
6.Ability
to set up automatic savings account. There's no reason not to save
today with an online account that electronically deposits money into a
savings or money market account.
American Momentum Bank is a progressive, Florida based bank that
strives to offer a deep understanding of our commercial, retail and http://www.AmericanMomentumBank.com
clients' immediate and long-range goals, unparalleled personal service,
and solutions tailored to our Clients' specific needs. Experienced,
professional management and Associates, combined with flexible decision
making, is essential to the success of our Clients. Our banks' success
is a result of our Clients' and Associates' success. For more
information, please visit http://www.americanmomentumbank.com
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