saving money

What is online banking?

There is no doubt that online banking is very convenient. It is the conduction of transactions such as paying bills, transferring money and creating new accounts online using a website that belongs to the particular financial institution. The users are generally given a username and password without which they cannot view their account details or perform any transaction to make the procedure very secured. For years many banking operations were automated using large computers. However the advent of technology has made it much easier for such technology to reach people of all classes.

What is the Status of Online Banking in Canada?

A recent research study by ComScore Canada revealed that the country is the world’s most developed market for online banking, with 67.1 of Canadian internet users banking online in April 2008 - significantly more penetration than in other English-speaking countries.

Among the key findings of the study are:
 Adoption of online banking in other English-speaking countries was 17-25 percentage points lower: UK (49.5%), US (44.4%), and Australia (41.7%).
 Canadians also led the world in online banking frequency, with an average of 8 usage days and 10.5 online banking visits per visitor in April.
 Canadians spent an average of 46 minutes on banking sites in April, viewing approximately 121 pages per visitor.
“The Canadian online banking sector is so developed and competition already so fierce, banks need to closely examine how they are meeting the needs of their consumers online if they are to achieve customer growth and retention through this increasingly important channel.”

What are the Benefits?

There are immense benefits of online banking according to CIBC such as the following:

 You don't have to line up for so long and plan your day around the bank's hours.
 You can look at your balance whenever you want, not just when you get a statement.
There are some hidden benefits too. As a young bank customer, you're just learning how to manage your money and observe your spending patterns.
 Online banking allows you to watch your money on a daily basis if you want to. By keeping close tabs on your funds, you'll always be aware of what's happening in your bank account.
 For those experienced spenders, this option is far more appealing than the sudden discovery that you're broke!
 It's also helpful to watch how much interest you're gathering on investments and savings or what service charges you have incurred.

What are the Disadvantages of this System?

Online banking has its disadvantages too. The initial process is time consuming. The banks require you to go through a long process just to set up an account in order to make it safe. Even someone with good computer skills can find it annoying with new technology coming up every single day. Therefore quite a few people find it much more convenient to deal directly with the people at their banks than a computer. However with enough patience and time you can overcome this hurdle easily and discover all the amazing features it has to offer.

Before you begin to use online banking for your transactions, familiarize yourself with all the information available so you make no mistakes. Take print outs and maintain a hard copy till an account of the transaction occurs on your balance sheet. Also check your account regularly to ensure that you haven’t made any mistakes such as clicking on a button twice when it’s not required. Small steps such as these will certainly help you use your account more efficiently.

Online Banking is Highly Popular

The biggest reason for popularity of online banking is the convenience it offers. Now you can transfer money to another account with a simple mouse click from anywhere in the world. It is fast, much less tedious and way more convenient than paper based banking. No more waiting in long queues or spending bank holidays worrying about your money. Online banking has made it possible to get everything you want and more anywhere, anytime. Not only that, it is also highly efficient and effective. It is efficient because you can control all your accounts such as securities and Individual Retirement Arrangement from a single website. It is effective because the advanced technology has made it possible to have many convenient features and add-ons such as stock alerts, interest calculators and programs to manage your portfolio.


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