In the 21st century, industries are changing faster than ever before. Old methods of communication are quickly being replaced by new ones that streamline and modernize every aspect of life. Technological innovation is also increasing the actual rate of this change. As more innovation occurs, the rate of change also increases. For example, delivering correspondences by horseback lasted for hundreds of years, but the fax machine only lasted for a few decades. As change accelerates, it touches many different sectors; it affects banking in profound ways.
The New Way to Bank
In the past, you had to walk into a branch of your bank to get your money. If you banked with a large corporation, there were probably many different options available, but you still had to go to a physical location to access your funds. The ATM was introduced to make it easier; but that still didn’t eliminate the need to go to a bank. Now, online banking has completely changed the landscape of the banking industry. You can apply online for a bank account in a matter of seconds. Anyone can become a member of these online banks, where you can keep your money in high-interest savings accounts.
High-interest Savings Accounts
As the name suggests, a high-interest savings account is an account that pays a high interest rate. In a savings account, the interest rate is the percentage of your balance that the bank actually pays you to store your money with them. Banks use their customers’ money to invest in new programs, to expand their business, and to play the stock market. Because they need your money, they will actually pay you interest on savings accounts in an effort to encourage you to join. Online banks tend to have some of the best interest rates in the industry because they feature lower overhead expenses.
When you run a traditional brick and mortar bank, you have to pay for the building, the lighting, the utilities, the employees, and so on. All of that is considered to be overhead. To cover their overhead expenses, brick and mortar banks pay lower interest rates and charge higher fees for different types of accounts. Online banks have much less overhead, so they can pay you a much higher interest rate while still clearing a profit on their end.
Ease of Use
Online banks are great because they are accessible from anywhere in the world. Simply put, if you have access to the Internet, you have access to your bank. That’s why brick and mortar banks are expanding rapidly into online banking. Customers in the 21st century expect their businesses to serve their needs no matter where they are. An online bank does just that. You can quickly open an account, store your money, and bank from anywhere with a broadband connection. People who are on holiday or who move a lot tend to love online banks, primarily because they can bank with ease while roaming anywhere in the world. After all, few things are worse than running out of money while you’re on holiday. With the easiest kind of bank to use, you won’t run that risk.banking anywhere, banking service changes, financial services innovations, mobile banking, online banking, online banks pay the highest yields on savings accounts, online high yield savings accounts, technology innovations in banking, the future of banking