How the internet has improved the world of personal banking

The internet is something from which almost everyone benefits. Whether it’s ordering the weekly groceries through a tablet computer or simply downloading your favourite music or media to enjoy when on the go, there are plenty of ways that this revolutionary medium has changed everyone’s lives. One way that it changed people’s financial habits, meanwhile, is through the arrival of online banking.

This innovative mode of banking now means that it’s possible to do everything from checking your balance at the touch of a button to keeping on top of your regular outgoings, such as direct debits and standing orders. What’s more, it also offers a safer banking process for all as it reduces the reliance on carrying cash. This article will look at all of these benefits in greater detail.

Better budgeting

Budgeting effectively has, of course, always been both possible and essential. Our grandparents managed it without the internet, and we’d probably manage just as well if we didn’t have the web! However, it’s also true to say that having access to instant information is a game-changer. A decade or two ago, the only way to find out how much you had left in your account was to head to an ATM and request a statement slip. Now, spending decisions can be taken right away. If you’re concerned about whether or not you’ll have enough money to buy something without going into your overdraft, say, then you can simply take out your smartphone, load up your internet-powered mobile banking app, and check.

Bills paid on time

Online banking systems make it simple to set up regular payments to everyone from your electricity company to your landlord. Gone are the days when you would need to make a phone call or even go into a branch to fill out a piece of paper if you wanted to set up a direct debit or a standing order. Now, all you have to do is log in, have your card reader to hand, and then fill out a quick online form! Not only does this save you time, but it also makes it more likely that you won’t accidentally forget a payment – so you can save cash by avoiding missed payment charges.

Paying the bills on time is also good for your wider standing as a consumer. It means that your providers are perhaps more likely to look favourably on you if you ever fall into difficulties further down the line, and it also means that you won’t need to run the risk of developing a bad credit rating. This means that you’ll be more likely to be approved for credit options such as mortgages and car loans in the future.

Safe and secure

The combination of money and technology often causes alarm, and images of hackers often loom large in the minds of consumers. While it’s true to say that there have been some isolated incidents of online banking fraud here and there, online banking has had positive benefits on personal financial security. Take the receipt of wages: while getting paid into a bank account obviously pre-dates the days of smartphone apps and website banking portals, there’s now even more of an incentive to carry around less cash as you can see how much you have at the tap of a screen.

What’s more, many types of financial security breach are not necessarily the product of the exact platform on which the banking occurs but simply wider problems of ignorance or exploitation. The mis-selling of payment protection insurance (PPI) is a perfect example, as it was caused by bad provider behaviour rather than the banking technology used. While this wrong can now be corrected thanks to MBNA PPI claim sites, it’s still wise to remain vigilant and read the small print – whether that’s on an online banking platform or elsewhere.

With technology changing all aspects of living in the modern world, it’s no surprise that banks have responded by making it possible to conduct your financial affairs entirely through the internet. This has had profound effects on everything from how secure your money is to how well you can budget – and with tools such as artificial intelligence set to make budgeting and money management even easier, it’s likely that online banking is simply going to go from strength to strength in the coming years.