Online banks

[AggramarAvenger]

Hi,

i am student from Czech republic (studying at VŠERS - english version of the website, it´s stripped down in comparison to czech) currently working on preliminary research for my bachelor thesis, and i would like to ask you about your experience with direct/online/virtual/internet (whatever term you prefer the most) banks.
I have chosen this discussion forum amongst others in czech language for comparison. The reason i am discussing on ICT oriented websites is, because here are the people, that are most potentially the customers of these banks, and they are maybe more oriented in online provided services and can even share their opinions about using services this way and their thoughts about future improvements of aforementioned services.

You see, in Czech there has been recently popular topic about new banks, that have emerged in the market past few years. Without having any branches (retail locations~store, or just few in larger cities) and with highly advanced information systems, they are able to provide the best prices on the market for banking products. But not having any branches and with online account creation, it proved to be an obstacle for some people, especially for older people, and in some cases even for middle-aged people; in terms of opening bank accounts. Yet lots of these people are able to use direct banking operating their accounts online, sending payments online etc. (every bank has it for years), but they are just not comfortable with doing everything online and not having a safety net in form of bankers and face to face meetings.

On the other side, the classic banks, where you have to go in person, if you want to open bank account or to take out a loan, they have started to cherish their customers more. Fake smiles, workers attending seminars on how to act while dealing with people, in really scientic way.
But in many ways it´s sometimes forced and you´re just not feeling right and it bothers you. They are more inclined to ripping off their customers with bad products. They just have lots of products and variations and they are trying to sell you the most unfavorable product until you can show them better deal from somewhere else, then they can start negotiating better price. In online banks with human factor mostly eliminated, it´s fair deals for everyone.

What are your thoughts about online banks? How does it work in your country? Are people comfortable with online only communication?

Thanks for reading.

 

[Belegost]

I bank with an institution called USAA here - they are primarily online, but do tend to have one branch in each major metropolitan area. The nearest branch to me is about 200Km away.

In the US it has become common to use debit cards to pay for everyday items, and my pay is electronically deposited into my account. Plus we have a widely available network of ATMs that are able to deal with withdrawls, as well as deposits in both cash and check form.

As such I have found almost no need to interact at a physical bank location, and banking online enables me to access information at my convenience, from my home, my work, or my smartphone just about anywhere.

I further do stock/bond trading through an online broker, I can directly move money to and from my bank with quick electronic transfers, and I schedule buys/sells/etc. with a convenient online interface. I can't think of one time in the last 5 years I've needed to even call anyone.

As for traditional banks, here in the US all of them also offer online services, not having it would lose customers here. And it seems like the tendency here has been to reduce the staff of physical branches, to save costs, and push people to use ATMs or online for the majority of regular transactions.

 

[BoomerD]

We will NOT do your homework for you...

 

[T9D]

I have USAA also. I love it. If I want to use an ATM they cover any fees up to a certain amount of withdrawals. They also have spectacular customer service. I think they save so much money by not having actual brick and mortar locations that they can use that for lower rates and better service. Easy to call and get help too. Much better than having to drive down and talk to someone after waiting in line. Can't see any reason or need for a location if you ask me. I even took out house equity loans and it was really easy. It's way easier getting insurance from them too. Online forms are cake to use and choose plans.

I just signed up for credit sesame too and it seems they have tons of online banks and financing to cater to your needs. Brick and mortar is going away.

 

[AggramarAvenger]

Thank for replies so far.

We will NOT do your homework for you...

It´s not my homework, it´s marketing research. I just need opinions on the subject from actual people.

In the US it has become common to use debit cards to pay for everyday items, and my pay is electronically deposited into my account. Plus we have a widely available network of ATMs that are able to deal with withdrawls, as well as deposits in both cash and check form.

As for traditional banks, here in the US all of them also offer online services, not having it would lose customers here. And it seems like the tendency here has been to reduce the staff of physical branches, to save costs, and push people to use ATMs or online for the majority of regular transactions.

Yes, we use debit cards and ATM as well and online services are provided by classic banks too, but they don´t need to reduce staff, they keep them busy with filing documents or digitalizing them - they replaced part of their job treating customers with administration.

I don´t know why, but people tend to find excuses for visiting branches with various things and somehow it´s really important for them to have some nearby.

 

[highland145]

It´s not my homework, it´s marketing research. I just need opinions on the subject from actual people.

This place is full of opinions. I suggest you stand on Boomer's lawn.


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