E-Banking: The Revolution is Upon Us

As the number of online banks increases, so do the number ofonline banking customers. One estimate from International DataCorporation is that households conducting online banking wouldincrease from 6.6 million in 1998 to 32 million by 2003. JupiterCommunications, an e-commerce analyst, has predicted that thenumber of online banking households will grow from 3.8 millionin 1998 to more than 26 million by 2003. Jupiter estimates thatwill be about 25 percent of all U.S. banking households in thatyear. Jupiter forecasts that by 2003, 18 million U.S. householdswill be receiving their bills online.

One demographic that online bank customers have in common isthat they are dealing with a nice-size income. Jupiter estimatesthat 69 percent of online banking households make over $50,000.The firm predicts this will decrease by 2003, when only 59 percentof the online banking households will make more than$50,000. More and more of us are expected to own home computers,understand how e-banking works, and trust the securitysystems.

Why You Should Join the Online Crowd

Although there are many reasons to bank online, we’ve narrowedthe number down to 10. If you can relate to any of these, goahead: Begin banking online today.

1. You never will have to wait in a teller line again—You simplylog on from home or anywhere in the world and accessyour accounts directly over the Internet. No one is ever aheadof you, slowing you down.

2. Your bank is never closed—ATM machines brought us this24-hour concept, but with Internet banking, you don’t evenhave to leave your home. Yes, although an ATM allows us toget cash at any time, it definitely isn’t the best tool to conductother banking transactions 24 hours a day. With e-banking,you don’t ever have to put yourself at risk of a crime bygoing to an ATM late at night. When you e-bank from home,you can view your accounts, pay bills, transfer funds, andconduct a long list of other functions at anytime, day ornight.

3. You have direct access to your accounts—It’s a hassle to goto your bank and ask for a printout of your statement in themiddle of the month. You don’t have to worry about that anymore.You can pull up your balances and view transactions atany time. You can see whether a check has cleared or whethera direct deposit has been placed into your account.

4. If you have children away at college, you can better managetheir school accounts and spending—Suppose that your soncalls one day to say that he just spent his last dollar on schoolbooks and is out of money. With e-banking, you can act onthis request with more information than your son is willing togive. You go online to view his account, an account to whichyou also have access, and you see that the ATM debit cardwas last used in a bar and that the transaction before that wasat a record shop. It’s not nice to spy, but you can talk to yourchild and be better informed by having access to the historyof how he is spending his money. You can also log on to hisaccount, see that his balance is declining, and transfer fundsfrom your personal checking or savings account into hisaccount if that seems appropriate.

5. You can bank from anywhere in the world as long as youhave access to a computer and the Internet—If you are atraveler, this comes in handy when you are away from homeand need to pay a bill. You simply go to your bank’s site, andthe bank will either electronically pay the bill or cut a check.Many do this for free.

6. It won’t matter if you run out of checks or stamps—You findyourself having to pay a few bills one night, but you don’thave any checks or stamps (or both). Again, simply pay thesebills online. Some banks allow you to pay an unlimitednumber of bills each month with no charge. Think about themoney you can save in postage!

7. You can bank conveniently even if you are disabled, sick, orelderly—If, for some reason, you can’t drive to the bank oneday, there’s no need to worry. You can still do your banking.Simply log on.

8. You can bank at home even if you’re in the militaryoverseas—If you are stationed away from home for severalmonths, Internet banking allows you to maintain your bankaccounts on the home front. Not to mention you can check tomake sure that the Army or Navy is depositing your payevery month into your account.

9. You can get more options and perhaps better deals—Onlinebanks are competing against each other and the traditionalbanks for your dollars and business. Internet banking hasintensified the competition between banks because geographicalbarriers have disappeared. You can live in New York andbank with an institution in Atlanta with no trouble. Becausecustomers can shop around now, banks are offering betterdeals—including higher interest accounts, great rates on certificatesof deposits, and no-fee ATM transactions.

10. You can naturally embrace new technologies—If you giveonline banking a try, you will get hooked. It’s a kick to viewyour account balances for the first time without having tovisit a bank or an ATM. It’s especially thrilling to move yourmoney around in your accounts with a simple click.