What Are The Benefits Of Online Banking?

Everything has an online presence these days — even your credit union! Learn all the benefits of online banking.

Going into your credit union’s local branch is taking a backseat to using online services, with more customers preferring the latter’s convenience. If it can be avoided, no one wants to stand in line and wait their turn at a physical branch anymore. Now, you can use your phone or computer to pay your bills, transfer money, and even automate your savings.

Here’s a look into the benefits of online banking and the risks you should consider.

What Are The Benefits Of Online Banking?

If you’re used to doing all your banking transactions the traditional way, it might be nerve-wracking to go digital. However, the benefits of online banking make the switch worthwhile.

Here are some of its advantages over traditional banking.

Convenience

One of the main advantages of online banking is being able to transact whenever and wherever you want. You don’t have to wait for your local branch to open to deposit money or send funds, saving you valuable time. Round-the-clock access also gives you peace of mind if there’s an emergency and you need funds urgently.

Can you open a checking account online? Yes, online banking makes that possible. It only takes around five minutes and a few clicks to have a new account up and running. Opening accounts online is significantly more convenient than visiting a branch and manually filling out forms.

Plus, online banking lets you go cashless. Not only are electronic transactions more efficient, but they’re also safer than carrying cash, more hygienic, and allow for better financial tracking and management.

Diverse Features

Online banking gives you access to a full suite of features, some of which you can’t get from traditional banking. Aside from usual everyday transactions like checking account balances and paying bills, you can perform more advanced tasks through banking apps. Some offer big-purchase calculators, peer-to-peer (P2P) payments, and customized financial advice.

Online banking makes saving easier thanks to various tools. You can use automatic transfers and round-ups to build your savings without much effort on your part. You can also use spending alerts and built-in budget creation to keep your expenses within a limit.

Some banks and credit unions even utilize live chat to give their online channels a human touch. That way, a representative can address concerns in real time, bridging the gap between the physical and digital worlds.

Security

Secure online banking is a high priority for financial institutions, especially with the growing presence of cyberthreats. Banks and credit unions take extra measures to secure your accounts and transactions, leveraging features like encryption, multi-factor authentication, and monitoring.

More banking apps also have biometric authentication, using facial and fingerprint recognition to log in. In addition, they’ll ask for additional information if they detect a successful login from an unfamiliar device. Heightened security gives customers more reason to go digital.

As with traditional banking, online banking transactions are either FDIC or NCUA-insured. These agencies cover a maximum of $250,000 for each individual, per bank and account ownership category. That way, you have protection.

What Are The Risks Of Online Banking?

Financial institutions ensure their digital channels are safe using various technologies to fight against online threats. Firewalls, encryption, and multi-factor authentication are just some measures banks and credit unions have in place to prevent unauthorized access and protect customer data.

While online banking is generally safe, that doesn’t mean there aren’t risks. Cybercriminals are becoming more advanced with their banking scams, with phishing being one of the most prevalent threats. Fraudsters pretend to be financial institutions, sending texts and emails to fool unsuspecting account holders into divulging sensitive information. The scammers will then use your data to withdraw money from the account or make purchases.

Online banking users must be vigilant about protecting their online banking accounts. Here are some ways to improve your online banking security.

Choose Your Bank Or Credit Union Wisely

While high-yield savings accounts and no fees are attractive offers, you should prioritize security features when choosing a bank or credit union. Select a financial institution with industry-standard security using robust technologies to safeguard their customers’ online accounts. You can check a bank or credit union’s security features on their website or fine print.

Multi-factor authentication is one of the security measures your financial institution should have in place. It’s an added layer of security that protects your data against hackers. Aside from your usual login credentials like username and password, you must provide other information to verify your identity.

Don’t Use Public Wi-Fi For Online Banking Transactions

You leave your data out in the open when you use unknown networks. That’s the last thing you want for your online banking information. Protect yourself by only using your private Wi-Fi network at home when performing online banking transactions.

If you must log in to your account while you’re outside, use your cellular data or a VPN. Also, ensure there’s webpage encryption before logging in.

Use Strong Passwords

Your passwords are your first line of defense against online fraud. Use long and complex combinations that are hard to guess, mixing upper and lowercase letters, symbols, and numbers. The general recommendation is 12 to 16 characters, but the longer password you have, the better. You can use a password manager to keep up with your passwords.

Turn On Text Alerts

Take advantage of text alerts if your bank or credit union offers this feature. You’ll receive a notification via email or text if your balance drops to a certain amount or there’s a large transaction on your account. That allows you to take swift action against fraud. Report any suspicious activity to your bank or credit union immediately.

What Are The Benefits Of Mobile Banking?

Mobile banking lets you perform many of the same transactions as online banking. However, mobile banking apps are optimized for touchscreen use, giving customers a more user-friendly smartphone experience. To use mobile banking, you must install your bank or credit union’s dedicated mobile app on your device.

Here are some features and benefits of mobile banking.

Check Deposits

Mobile banking makes depositing checks a breeze. Instead of taking your check to a physical branch, you can snap a picture of it with your phone and deposit it from wherever you are. All or some of the funds should show up in your account immediately, depending on how much is deposited.

Bill Payments

You never have to miss a payment with mobile banking. You can schedule one-time or recurring bill payments on mobile banking apps, entering information like biller, payment account, and payment amount. Not only does this save you time but also money, helping you avoid late payment fees.

Transaction History

Being able to check your transaction history anytime, anywhere is one of the most convenient features of mobile banking. You can view posted and pending debits and credits and filter transactions by amount, date, or transaction type. Creating budgets is much easier when you can access all the necessary information. Not to mention, you can use your transaction history to catch fraudulent activity.

Notifications

Push notifications are one of the most notable differences between mobile and online banking. Like other smartphone apps, mobile banking apps send push notifications to users, alerting them of inbound and outbound transactions and promotional offers. These notifications appear automatically on your device without having to log in. You can also set up specific notifications like low account balances, changes to your account information, and failed login attempts to catch suspicious activity.

Why Is Mobile Banking Safe?

Using a mobile banking app from a secure store is as safe as going to a physical bank or credit union branch. It’s best to download the mobile banking app from the financial institution’s official website. Mobile banking apps use highly secure, advanced technologies like encryption, software updates, and biometric authentication to safeguard customers’ accounts and transactions.

As safe as mobile banking is, customers should be vigilant against cyberattacks. Fraudsters use various methods to target consumers, including fake banking apps and app-based Trojans. Safety practices like complex passwords, two-factor authentication, and regular software updates will help keep your online accounts safe.

Transact Online With A+ Federal Credit Union

A+FCU offers a full range of secure online banking services to help members achieve their financial goals. With A+ Online Banking, you can conveniently manage your finances through features like balance checking, money transfer, loan application and payments, account opening, and bill payments.

You can also download the A+ Mobile App to manage your accounts anytime, anywhere, from your smartphone or tablet. Through the mobile app, you can access financial tools that make daily bank transactions effortless.