Online banking services allow customers of banks to
perform any number of useful banking actions online instead of needing to
physically visit a bank to do so. Many banks offer free online banking for
their customers as an additional enticement to open accounts with that bank.
The ease and accessibility of online banking services is one of the positive
results of banking and the Internet coming to intersect with one another, and
it is conceivable that in the future most, if not all, banking will be conducted
through online banking services.
Online banking services include a number of different
functions. Perhaps the most common are transactional services, oriented around
making some kind of payment online. One of these free online banking services
related to transactions is bill payment online, by which one can pay directly
from a bank account for a utility bill, for example, all through online
banking. This would be referred to as the bank-aggregator form of electronic
bill presentment and payment, under which the bank would be collecting the
bills which the customer pays, and the customer can simply pay them all through
his or her online banking services.
Transactional online banking services also include funds
transfers, which a customer can use to make transfers between a checking
account and a savings account, for example. Doing so through banks’ free online
banking services is often easy and effective, as it requires a minimum of
paperwork and also allows customers to check bank accounts online
frequently in order to determine if the transfer went through.
Purchasing investments is another main transactional type
of online banking service.
Customers may even obtain loans, or pay off loans, through
free online banking services.
There are many non-transactional free online banking
services as well. The most obvious and common of these is likely that of
obtaining bank statements, allowing a customer to monitor his or her accounts
instantly through online banking services. Instead of having to rely upon
monthly paper mail statements, a customer would be able to get a statement at
any point simply by visiting his or her account through his or her bank’s
Additionally, banks may offer up online banking services
like a checking registry, allowing a customer to see all the checks he or she
has issued and whether or not they have been paid yet. The bank may even offer
a chat function in order to assist customers in any way they might need by
putting them in touch with a bank representative.
Online banking services offer up a number of other
options which are unavailable through more traditional means of banking. For
example, online banking services might include the ability to easily transfer
the data offered up through an online banking statement into another program,
such as an accounting program or a tax program. Also, some banks even offer support for all of a user’s accounts so that a customer can consolidate
information on all his or her accounts through one bank’s online banking services.