More and more banks are becoming brick-to-click banks. These large national banks have a physical presence as well as an online banking site. Brick-to-click banks are distinguished from brick-and-mortar banks which may not offer online banking.
Many customers prefer the convenience of online banking over traditional banking as it provides up to date, quick payments and transfers and round the clock access to account information. In addition, online banking sites often also offer features such as account aggregation or accounting software. Customers can even apply for loans or mortgages using an online banking site.
A leading concern of online banking is security. Most online banking sites use a PIN or personal identification number system to provide a higher level of security than a single password authentication.
Though online banking has many advantages, there are also some reasons that customers prefer the more traditional brick and mortar bank. Registration on an online banking portal may require a trip to a physical location to sign a form or provide ID and upgrades or changes to the site can cause a seasoned user to acclimate to a now unfamiliar site.
The biggest challenge of online banking is the same for both the bank and the customer. Some banks have yet to gain the trust of their customers. These customers may not be ready to make the leap to online transactions, transfers and payments.