The bank is digitizing with the internet, which abolishes distances, promotes flexibility and increased mobility thanks to smart terminals. Traditional banking players such as start-ups have taken the opportunity to create online banking services.
This new banking model that goes beyond simple remote banking has quickly emulated. Half of the French plan to open an online account according to a poll Toluna dating from July 2016. The same survey shows that they would be 22% already have an account.
What characteristics explain this growing success of online banks? Are they safe? What conditions to fulfill for an online account? Here’s what you need to know about online banking.
The characteristics of online banking
Online banking makes it possible to dematerialize bank management operations, account management and customer relations. For any manipulation, you need an internet connection and a compatible device. Your account is accessible 24 hours a day anywhere and transactions are faster than in an agency. If the particular accounts are the most widespread, more and more actors propose to open to the consumers wanting a professional account on the same model as the first ones.
The branchless model of online banking allows them to exonerate clients from intervention fees and account management fees are free. Bank cards are free of charge under resource or income conditions. Almost all banking transactions (withdrawals, withdrawals, investments …) are without cost. Ancillary fees related to brokerage, authorized overdrafts or miscellaneous, are below average on the market. These and other factors make online banks 1.6 to 3 times cheaper than traditional banks.
Good to know
Your ebank may charge you for transactions not covered by your plan such as interbank transfers or the use of checks. An additional fee will be charged if you use your credit card at a non-partner bank or abroad. Remember to read the support of online banking offers to make a choice adapted to your profile.
Reliability and security of the ebank
In general, online banks are subsidiaries that complement the offer of traditional banking groups. As a result, they operate according to the same rules and principles. For security, online services, data exchanged between a customer and an online banking site benefit from an encryption (SSL) identifiable by the “S” of the HTTPS which begins the address of a site ebanque.
In addition to this encryption, the banks proceed by authentication of the client (identifier and secret code). All sensitive transactions benefit from additional security by using one-time authentication codes sent over the phone. The consumer must keep his information confidential to facilitate his access to the online service. A simple call to his bank can solve problems of loss or theft.
The conditions to fill in to open an account online
They vary according to the actor, but in general you must:
- have a traditional account
- have a minimal amount on the account or credit it on a regular basis
- submit once a month a positive balance
- justify a minimum income or possession of a savings product
Offers offered by online banks are less provided than those offered by traditional banks. Nevertheless, it includes all basic banking services and most of the savings benefits such as booklets, securities accounts, home savings products (PEL), life insurance.
Stock trading (listing, asset allocation, decision support …) is faster and more efficient with online banks.
For credit, today you can take out a mortgage online. Some consumer credit products are also developed by ebanks.