Before online banking came to be, most of us probably refused to shop online. Aside from facing the risks of paying with our credit cards, we also didn’t want to line up in banks to deposit cash payments instead. After all, there was hardly any guarantee that we’re paying a legitimate business unless it’s a trusted name, such as Amazon.
But since the dawn of Amazon and other well-known e-commerce businesses, many online brands started to emerge as well. New businesses ranged from local home-based retail stores to upscale shops. As such, e-commerce platforms like Shopify were launched, giving small online brands a “home”, where they could prove their legitimacy.
While small e-commerce businesses easily attract customers, getting those customers to complete their orders tends to be challenging. With limited payment methods available, inconvenience became a huge barrier to conducting business.
Cash on delivery may be a more convenient option, but some stores don’t offer it, especially for pre-ordered products. For that, customers are usually required to deposit a down payment first, or sometimes, the full payment right away.
If there was no online banking, e-commerce businesses will surely struggle, and customers would often complain of inconvenience. But now, no one has to deal with such sentiments anymore.
Online Banking Increased Customer Satisfaction
A 1998 research found that a steady and positive relationship between e-service quality and customer satisfaction exists. This conclusion was supported by a 2018 research, which found that customers demonstrated higher satisfaction with banks when using e-services. Similarly, a 2003 research verified that e-service is the first step to customer satisfaction. And finally, research suggested that online banking linked to reliability has a significant effect on customer satisfaction.
Sure enough, online banking provides convenience to both bank tellers and customers. Because account holders can now perform their transactions from their phones, tellers are able to deal with fewer customers in banks. Alternatively, customers no longer endure long queues.
What’s more, online banking doesn’t just permit deposits. It also allows bill payment, balance inquiry, fund transfer, and withdrawal requests. It even allows interbank transactions. And all these services are available 24/7, so customers are no longer forced to rush to the bank before it closes in the late afternoon. Online banking never closes, even on holidays.
Reduced The Chances of Abandoned Carts
3 out of 10 online customers abandon their shopping carts when they are forced to follow a requirement, such as to create an account. This may also happen if bank deposit isn’t available among the payment methods. Not everyone owns a credit card, after all, and not everyone is willing to pay through a remittance center.
Credit card payments, though also convenient, tend to be risky. Hackers often target them, intercepting online stores at the payment portal. Instead of redirecting the customer to the proper payment channel, hackers will take them to an identical-looking malicious site instead. If customers fail to notice the difference in the URL, the hackers will be able to steal and use their credit card data.
While online bank deposits aren’t invulnerable to risks, they can be harder to tamper with, since most banks place strict cybersecurity measures. The most threatening risk customers and banks face is phishing, a type of scam where hackers copy the bank’s website to fool users into logging in. They’ll send out the link through email, and wait for an unsuspecting customer.
But since banks are already aware of this scam, they discover it quickly and get to warn their customers before extensive damage was done. Moreover, they constantly remind customers not to entertain emails from unknown sources claiming to be the bank or their family members. They also teach customers how to spot incorrect URLs and other suspicious details.
Financial services Expanded
The rise of online banking activity captured the attention of financial institutions outside of the traditional banking industry. Now, a variety of financial services companies offer prepaid credit cards, pay-day loans, business loans, and check-cashing services. Banks also offer online services similar to those, and the services aren’t subject to the same government regulations as traditional banks and credit unions.
Creating Bank Accounts Has Become Easier
While you still need to be physically present in a bank to open an account, creating an online banking account is different. Just download the bank’s official app, enroll your existing bank account in the platform, and start exploring the services. No need to sign numerous papers and submit a ton of requirements. Your bank will start serving you the moment your account becomes activated.
As such, you can now shop at your favorite online stores without worrying when you’ll have the free time to go to a bank. No more abandoned carts, because you can pay right away and enjoy a much smoother and faster transaction.