By Erik Neilson  Updated on Wed Jul 9, 2014

Why Opening an Online Bank Account Isn’t a Hassle When You Know What to Expect

 

There’s no getting around the fact that online banking is becoming more and more popular with each passing month. Online banks are prized for a number of reasons, as they offer a variety of solutions to customers that may be difficult or impossible to find at a traditional bank. What often goes overlooked, however, is that setting up an online bank account can sometimes be easier said than done.

Why Opening an Online Bank Account Isnt a Hassle When You Know What to Expect

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Browse the web for reviews of online banks, and chances are you’ll find that a number of customers have written about how unhappy they’ve been with their experiences. More often than not, however, the discontent comes not from issues related to the services or security offered by the bank in question, but instead from the difficulties associated with opening an account in the first place. According to this review on MyBankTracker (in respect to online banking institution The Dime), “The amount of information needed to get a second name on an account is way too difficult. What’s required by any other bank or financial institution is so much simpler and still is secure but the Dime is so difficult with all their forms, multiple notary requirements makes them impossible to work with.”

Just because certain online banks may be difficult to sign-on with doesn’t mean that they aren’t worth considering. Many of today’s finance professionals actually recommend having an online bank account in addition to an account at a large, nationwide financial institution. Understanding why these hurdles sometimes get in the way, then, is the key to streamlining the experience should you decide to open an account with an online bank yourself.

Are you a human or a machine?

It’s important to realize just how much of a problem fake accounts are in the Internet age. It can be difficult at times to determine whether or not you’re dealing with a human or a machine when there’s no face-to-face interaction, and this is unfortunately what banks and other institutions have to deal with on a daily basis. It’s not difficult for hackers to come up with ways to open accounts at online banks with software and code, and given the fact that this could potentially cripple a bank if things are taken too far, it should come as no surprise that online banks are so finicky at times in terms of the amount of information they require for one to open an account.

How many accounts are you trying to open?

With a lot of online banks, it’s perfectly fine to open a number of different accounts. Many business owners and entrepreneurs have no choice but to do so if they wish to separate their personal banking from their business banking, although this need can make getting an online bank account more difficult than it might be otherwise. Some banks take action to prevent people from opening multiple accounts under a single name, which is one reason why they often require a great deal of information upon signing up. The same can be said for trying to add a second person’s name to an already existent account.

Security measures are often put in place to avoid any potential fraud or identity theft from occurring, which is a huge problem on the Internet at the moment. Opening multiple accounts, then, is just one of the things that can make the logistics of online banks difficult for some people to deal with.

How established is online banking, really?

Given the fact that online banking is exceptionally popular at the moment, it can be difficult to remember that online banks are actually far newer to the banking landscape than most people realize. In many ways, it’s an entirely new take on the idea of traditional banking that makes use of the latest and greatest advancements in technology.

As most people know, however, the Internet is a constantly-changing landscape that can make finding stability more difficult than most people think. Online banks certainly have established themselves as being exceptionally important, but they’re still testing the waters in many ways and doing whatever they can to stay in business. As a result, they’re more careful with who they choose as customers than many other financial institutions might be.

It’s quite clear that setting up an online bank account can be difficult at times. This being said, there are a number of things that you can do to make the process a bit easier. First, consider a number of different online banks and find out upfront exactly what they require in order for you to open an account with them.

Preparing this information and having it on-hand when you finally decide to open an account can make the process much easier. Remember that some online banks are far more difficult than others to open an account with, and their logistical details (which you might encounter down the road) may be more complicated as well.

For best results, take a bit of time to browse our reviews of online banks. The more you can learn ahead of time, the better.

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Post a Comment

  • http://www.erikneilson.com Erik Neilson

    What do you feel are some of the easiest online banks to get an account with? Most difficult? Weigh in and share your experiences!

  • Jeremy Reyes

    I considered an online-only bank but the one thing that left me undecided was the idea of not being able to deal with a “real person” if i ever ran into a problem with my account or needed immediate help with something. I’m still on the fence about it and after reading your article I have a question..

    you mention that the internet is constantly changing and the online bank concept is still fairly new, with more and more people being more technologically advance, why do you think most still prefer old methods of banking?

  • http://www.erikneilson.com Erik Neilson

    Jeremy,

    I think there’s something to be said for a personal touch, which can be difficult to find in online banking. I also think it takes a while for people to get comfortable with new technology, so we’ll be seeing a huge uptick in the number of people who switch to online banks over the course of the coming years. As with anything else, old habits die hard.