Virtual Banking – Advantages and Disadvantages of Virtual Banking

Do you know what the term virtual banking is all about? If you don’t know what this term is all about, then count yourself lucky. This is because in this article today, you are going to learn all about what virtual banking is. Virtual banking is of Corse a banking system, if you don’t know or should I say a type or form of banking. There are several forms of banking and virtual banking is one of them. This type of banking is one of the latest forms of banking and users are still getting to find their way around it.

Virtual Banking

ALSO READ: MOBILE BANKING

Virtual Banking

Do you know that most American adults have at least one bank account? Yes, this is absolutely true. Whether it is a savings account or a business account, whichever the case may be, most adults all over the world are operating a bank account. The story of money and banking is quite an interesting one. Gone are those days where people stash money under their mattresses for safekeeping. If you want to safe-keep your money, all you have to do now is to register an account with a bank. If you also want to move money around you should also do this.

Over the years banking methods have evolved. There are various forms of banking. In this article today I will be writing on one of the forms of banking and this is the virtual form of banking. Virtual banking is a form of banking that is done online. A financial institution that does its financial banking services online s termed a virtual bank. With virtual banks, users can do most of the thongs traditional banks do. With Virtual banks, users can pay bills, withdraw and deposit money, check account details, secure loans and so much more, anytime and from anywhere.

Most users often mistake virtual banking for online banking. Although both forms of banking are similar they are not the same. Virtual banks carry out all its operations via the web, mobile check deposit, email, and ATM machines. These types of banks do not have overhead physical branches. Online banking, on the other hand, is an internet-based option offered by regular banks.

Advantages and Disadvantages of Virtual Banking

Just like most forms of banking virtual banking is ideal as it is a very convenient form of banking. But it is important that you know that this form of banking isn’t all great, it also has its own disadvantages. In a little while, I will be telling you of both the advantages and disadvantages of this form of banking.

Advantages

  • Convenience and mobility.
  • Completely free checking.
  • Environmentally friendly.
  • More advanced web technology.

Disadvantages

  • Slower deposits due to lack of physical branches.
  • There is no personal relationship with banking officials or personnels.
  • Website outages.

These are some of the advantages and disadvantages of virtual banking. Personally I think this type of banking is a good option due to some factors. It is important that you consider some factors when selecting a financial institution. Your level of understanding of the internet and mobile technology are key components to be considered when choosing virtual banking as a banking option. If you are not too conversant with these things it is therefore wise to choose another form of banking.

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