Switching to online banking

Author: Richard

Sorting out personal finances can be an extremely daunting prospect, one to be put off as long as possible. So much so that most people are more likely to divorce or move house than change their bank. The loyalty which is shown towards these financial institutions belies the many changes that have occurred in recent years within the fields of internet banking, which make it easier to see whether you are getting the best loan or bank rates that are available, even without leaving your home.


These days, most people rarely visit their actual bank premises to carry out transactions. The bank is, instead, represented by the many cash machines scattered around towns and shopping centers. Purchases can usually be made using credit cards or debit cards, and so, as a result of all these changes, direct physical contact with the bank is becoming a rapidly diminishing occurrence.


Following on from phone banking, the expansion of internet banking facilities has meant that you can now check, say, your LloydsTSB or Barclays current account from home, track payments, pay off credit card bills, transfer money between accounts, or even open a brand new account from scratch - all without ever actually having to visit and queue up at a bank in person.


Additional advantages of going online to bank include: setting up standing orders, applying for loans, changing account details, or obtaining or requesting information. This is not to mention the fact that the online services are available 24 hours a day from wherever you find an internet connection. With the major high street banks getting serious about online security and making it increasingly safer than most offline transactions, it seems that the age of online banking has finally arrived.


If there is no longer any real contact with the actual staff at the bank and, therefore, no customer to manager relationship is developed, it does beg the question whether the, currently widespread, customer loyalty of bank users is misplaced, or whether the lack of movement between banks towards newer and better products is simply down to a deficiency in financial information availability or even just general laziness.


The fact is that it is now possible to check the rates and services which are available from the banks by going online to visit their websites or, even better, comparing hundreds of accounts in one go through the use of one of the many financial aggregator sites that are available. These days it is simply a matter of logging on to a site like Moneynet.co.uk to compare the entire market of loans, credit cards, bank accounts, and insurance, etcetera, all in one go. Information is easily available, and you don't have to look far.


This seems to leave laziness as the main culprit for bank customers not changing. However, with all the effort that the big name banks are putting in to win new customers over, and the ease with which they are making it to change accounts - along with the not insignificant savings that can be made from such an easy switch - it should be only the most dedicated of couch potatoes who refuse to investigate and make the first move. And even they might jump - or maybe trudge! - at the chance to pay the bills while sitting at home watching TV.


Whatever the reason, with just a small amount of effort it is possible to find information and compare products across the entire financial market with great ease. And chances are there will be a better financial package available now than one that was taken out several years ago.


You don’t even need to deal with any bank sales people.



Disclaimer:

All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.