Market Overview

3 Online Banking Frustrations And 3 Companies Looking To Fix Them

3 Online Banking Frustrations And 3 Companies Looking To Fix Them

With the rise in technology, more and more people have turned towards online banking. The general trend online in recent years comes from the attraction of cheaper fees, from avoiding maintenance fees, avoiding ATM fees and security fees.

It's also much more accessible, from anywhere and at any time versus being on your bank’s clock. There are often no minimum requirements for opening an online bank taking the pressure off customers without steady deposits. Despite these appealing aspects of online banking, there are several drawbacks that has users hesitant about online banking.

Instead of sacrificing your financial wellness, several companies have tackled the main frustrations with online banking to encourage more people to get online. Here are three online banking frustrations and how three companies are looking to fix them.

1. Robo Advisors

One of the main frustrations people have with online banking is the lack of human interaction. With a typical financial advisor in brick-and-mortar banking, you will have plenty of human contact, as well as an in-person relationship with the person in charge of your investments. Many people aren't comfortable transacting their business online, and struggle with technology.

If you don't consider yourself to be technologically savvy, online banking can seem rather daunting. However, there are several robo advisors that are highly advanced in artificial intelligence, and it feels like you’re talking to a real person.

If human contact is important to you, then Ally Bank (NYSE: ALLY) Interest Checking could be the most viable option for you. Their customer service is accessible 24/7, so you will always have someone to guide you through any problem with your banking activity.

2. Bad Or No Credit Score

Having a poor credit score is hard enough to explain in person to a bank, and can seem an even harder feat to do to a robot online. Having a low credit score can affect your ability to take out a loan, especially if you don’t have a credit history to begin with.

Tala is an online bank that utilizes alternative data to underwrite users without a credit score. Tala will use nontraditional data to score the 68% of the global population that isn’t covered by credit bureaus. If you don’t have credit history and are struggling to find a loan, Tala could be perfect for you, regardless of your financial history.

3. Making Cash Accessible

Another frustration with online-only banks is the lack of a physical branch with a large ATM network. Many people associate visiting the bank with having a location that is always cash accessible, but many online banks have overcome this frustration.

MoneyLion has an incredibly accessible ATM network. MoneyLion is available through 55,000 fee-free ATM’s across the globe, meaning no ATM fees. This is the sign of a reliable online banking service, as most will be part of an ATM network with thousands of easily acceptable ATMs across the globe. These ATMS can also be located through your mobile device, making it easier than ever before.

MoneyLion has a compensation arrangement with Benzinga under which MoneyLion pays a fee for marketing and advertising services. MoneyLion does not have editorial control over the content of this material. MoneyLion does not adopt, endorse, or guarantee the accuracy of content posted by Benzinga, and such content does not represent the views of MoneyLion.

Posted-In: Education Personal Finance General Best of Benzinga


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