How reliable are online banks?

Since the advent of the Internet, several things that could be done physically, now have its online version. The implication is that we can now do several things online including meeting people, communication, shopping, and sending money among others. This implies that there are online banks that make it possible for people to be able to send money through their platforms. This article will discuss what online banks are and if they are reliable.

What are online banks?

Online banks are banks that have a website and/or app on which customers and prospective customers can register, verify their account, and make transactions. Majorly, the customers should be able to send and receive money on the platform. They should also be able to carry out some other activities such as checking their account balance and paying certain bills among others. The banks should have features such as an ATM card or withdrawal to a bank they can receive cash on so that they can access whatever money they have in the account in cash within a short while. Today, several physical banks now have an online platform on which their customers can carry out financial transactions. Hence, most of the physical banks also serve as online banks. However, there are several online banks around the world that even though they might have a physical office for their staff, they operate strictly from online platforms.

Benefits of online banks

The major benefit of online banks is that they mostly provide their services at a very affordable rate. This is because they know that it will take some time for people to start to trust them compared to patronizing physical banks. So the facts that people can easily use their online platforms for everything, as well as their cheap services, are the benefits that come with using online banks.

physical banks

Are online banks reliable?

To a very large extent, online banks are reliable. However, just like there are a lot of physical banks and other companies that are not reliable, the same can be said about some online banks. Some people could develop an online bank for the sole purpose of defrauding people who put money in the accounts. There are also other instances where an online bank could startup with good intentions but close down due to poor management and other unforeseen circumstances. This is why it is important to carry out some research on an online bank before you patronize them to avoid losing your money.

How to know the right online banks to use

There are many types of online banks available and you should register and use the right online banks to avoid disappointments. For instance, there are some online banks such as WorldRemite and Transferwise that are best suited for sending money abroad, while there are some online banks like Payoneer that are best suited for receiving payments as a freelancer, especially when you are not an American. There are also online banks that are best suited for savings and investments, where you can keep your money and expect some profit when you want to withdraw the money after some months or years. Hence, you should research properly to be sure that you use the right type of online bank you are interested in. The best way to research online banks is to read reviews on and other independent reviews platforms. For example, you can read About WorldRemit to know the experience of those who have used them to send money abroad and receive money to know if they are reliable, trustworthy and the right online bank for you to register on.