Online Checking Accounts
Online checking accounts have surged in popularity in recent years, and it's easy to understand why. Unlike accounts at traditional brick and mortar banks,
online checking accounts from branchless banks like ING Direct don't have to cover the cost of expensive branches and impressive marble-lined hallways in the form of higher fees and lower yields. The result is that customers have been fleeing expensive big bank checking accounts in favor of the more efficient online checking accounts in ever-increasing numbers.
The Big Guys Take Notice
Some traditional banks like
Washington Mutual
have taken notice, and begun offering online checking accounts of their own, often with rates and features that are at competitive with their strictly online rivals. Handling their overhead for maintaining branches has been a mixed bag, however. Some have elected to charge a fee for in-branch visits to their online customers, arguing that having the option to bank in person, even at a fee, is still an advantage over strictly online banks. Others have decided to forego fees in hope that holders of online checking accounts will naturally tend to visit bank branches less frequently.
The Future of Brick-and-Mortar Branches
In any event, the future of the local bank branch remains a question mark. At present, large number of customers still prefer to do business in person, especially where important financial transactions are concerned. However, online checking accounts have many advantages, and can't help but gain in popularity as future more technically-savvy generations enter the banking market. One wonders how much longer those marble hallways will be worth their staggering cost to the banks that own them.