Fiskes/Getty Images
A recent report from PYMTS found that 81% of bank customers use a mobile device to manage their finances each month.
While mobile banking and online banking continue to grow in popularity, the report found that financial institutions need to balance going digital with maintaining human interaction. The report also found that 25% of customers switched bank accounts in the last year, with 51% seeking a better digital experience and 39% seeking improved customer service.
Check out: I’m a Bank Teller — 4 Reasons Why You Should Withdraw Your Savings Now
Read next: 9 things you must do to grow your wealth in 2024
Online banks can be a good option because they offer competitive interest rates and easy-to-use digital tools, but not everyone supports relying on technology to manage their finances.
Here are five signs that an online bank isn’t the right choice for you and you’re better off using a traditional bank.
Current Trends: Baby Boomers Hold Half of America’s Wealth — So Why Are Thousands of People Homeless?
1. Prefer to talk to someone directly
“If visiting your local branch and speaking directly to a banker is your priority, online banking probably isn’t the right choice for you,” said Ben McLaughlin, a personal finance expert and president of Raisin. Ta.
If you prefer to process financial transactions or seek advice face-to-face, you may not appreciate online banks since you likely won’t meet anyone in person.
Reasons for preferring in-person banking may include:
You deposit checks frequently.
They tend to shop with cash.
Service businesses provide cash-based income.
Online-only banks give you access to an ATM network, but they may not have a location nearby.
There are many scenarios where you would want to talk to someone in person, but online banking can make it difficult to feel comfortable dealing with financial issues.
For you: I’m a bank teller — 6 ways to keep your checking account safe
2. I don’t feel comfortable doing financial transactions online.
“If you don’t feel comfortable doing financial transactions online, a more traditional brick-and-mortar branch may be a better fit for your needs,” McLaughlin says.
Some people love the convenience of mobile banking, while others simply don’t feel comfortable handling complex financial transactions online. Personal finance is personal, so there is no one-size-fits-all solution.
There are several situations where it makes sense to evaluate a more traditional approach to customer service, including:
story continues
3. Customer service options are limited
“If an online bank supports very poor customer service options, such as only live chat with no call access, that’s a red flag,” said Faris Khatib, financial expert and CEO of Ideal Tax. points out. “Traditional banks can and usually do help in person, which can be very helpful when more serious issues arise.”
A notable issue with some online banks can be that it can be difficult to contact someone. When you’re faced with a serious financial problem, such as possible fraud, or want to apply for a mortgage, you’ll want to talk to someone right away instead of waiting for limited live chat options.
4. There are limitations to the services provided.
“Online banks may have limited services compared to traditional banks, such as loans, mortgages and investment products,” Khatib said.
When someone wants to apply for a mortgage, check their credit score, or open a new investment account, using a traditional bank may give them more options and resources. .
While it’s tempting to chase the highest interest rates on a savings account, you may have more complex financial needs. This leads to the next point.
5. Savings rate is not very high
Many online banks are known for encouraging new customers with competitive interest rates compared to traditional banks, but it’s important to remember that these are usually just introductory offers. is.
Just because a bank is online-only doesn’t mean it will offer the best interest rates over the long term. This is why it’s important to do your own research to ensure the bank you choose is right for you and your financial goals.
Details of GOBankingRates
This article originally appeared on GOBankingRates.com: 5 Signs Online Banking Is the Wrong Choice for You
