Links to external websites are not managed by Varo or The Bancorp Bank
Americans are leaving traditional banks for mobile banking—and they’re not looking back.
According to a survey by Business Insider, 89% of Americans already do most of their banking online. And that’s 97% for Millennials and 91% for Gen X.
About 30% of the U.S. population have opened an online-only bank account or say they plan to soon, according to a survey by Finder.
1. You’re Already Online
Online banks are on the rise, because they’re easy to use and often offer better perks.
90 percent of Americans are already online and 61 percent of all financial transactions are coming through a smartphone.
Online banks operate where people already are—on the internet. As we shop online and manage our bills through online portals, it becomes easier and easier to have our money online as well.
There are fewer and fewer reasons why someone would need an in-person bank branch.
2. Fewer Fees and Higher APY
While all of the big name traditional banks are online, their offerings are often weaker compared with online only banks.
That lack of overhead also allows online only banks to charge fewer or no fees.
This often includes ATM feed, as well. Many online banks partner with other companies to offer free access to ATMs around the country, unlike traditional banks that penalize you for not using brand specific machines.
3. More Opportunity for More People
Banking has traditionally made it harder for people of impacted backgrounds to bank. Online banking may be a step in the right direction.
Many people fall victim to predatory financial services because they can’t afford to pay traditional bank fees and often don’t trust large banking corporations.
4. It’s Safe
When it comes to your money, security is important. Nowadays, online banks that are FDIC insured are just as safe as traditional banks.
But in case you’re worried, here are some tips to make sure you are banking safely, no matter where you bank:
- Avoid using public WiFi or public computers to sign on to your bank accounts, if possible. If you do not have access to a smartphone, personal computer, or secure WiFi, consider getting a Virtual Private Network, or VPN, to keep your information safe.
- Make sure you choose a bank that uses encryption to protect your information and your money. Look for sites that begin with “https”, rather than “http”.
- Sign up for alerts from your bank that will notify you if anyone tries to access your account.
- Change your passwords often and make them unique. More than 80 percent of internet users use the same password across multiple sites.
- Make sure your bank protects your money through the FDIC.
History and banking trends show that Americans are clamoring for online banking options that are easier, cheaper and help them get the most out of their money. Shop around, compare rates, even test drive a few different accounts to find your best fit.
Opinions, advice, services, or other information or content expressed or contributed here by customers, users, or others, are those of the respective author(s) or contributor(s) and do not necessarily state or reflect those of The Bancorp Bank (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s).