What Is Online Banking?

Online banking, also referred to as Internet banking or e-banking, is a digital platform provided by banks and financial institutions that enables customers to perform various banking activities through the Internet.

This service provides users with the convenience of managing their finances, accessing account information, making transactions, and paying bills without the need to physically visit a bank branch.

I believe digital banking surged in popularity across the Philippines when the pandemic hit because people could not go to places like banks.

Online banking helped Filipinos manage their finances despite the limitations. With the convenience it offers, it has become a game-changer, catering to a diverse audience ranging from busy moms and dads to tech-savvy millennials and seasoned banking customers.

If you’re new to digital banking, we’ll help you understand more about it and how to use it to make your life easier as long as you have access to the internet.

Who offers Online Banking?

Most big banks here in the Philippines now offer online services so if you already have an existing savings account from a known bank, thn check if your bank has an online app.

You can download that to your mobile devices and enroll your account for online banking.

You may also visit your nearest bank branch to ask about this or activate your online account.

Aside from the bigger banks, there are banks that only offer online services and do not have a physical bank branch. These banks normally have a higher interest rate and they are also licensed by the Banko Sentral ng Pilipinas.

You may read our content about the BSP licensed online banks in the Philippines with higher interest rates.

Online Banking Services

What are the services you can get from banking online?

Now that you’ve got a glimpse of what online banking is all about, let’s dive into the exciting possibilities it offers.

Here’s a list of common tasks you can easily tackle with the magic of saving online:

Account Management

With online banking, you can check your account balances and statements instantly, that way you can keep track of your finances.

No more waiting for that monthly paper statement – it’s all at your fingertips.

Money Transfer

Do you transfer money between your accounts or even to other banks?

Online banking can help you do these things easily.

You can move money around effortlessly with just a few clicks. Whether it’s between your own savings accounts or sending money to a friend, online banking makes it quick and convenient.

Paying Bills

This is one of my favorite because it does make life so much easier because with online banking you can pay bills electronically.

So you can say goodbye to writing checks and mailing bills.

With online banking, you can set up electronic payments for your bills, ensuring they are paid on time without the hassle of traditional methods.

Request Debit Cards

Need a new debit card?

Instead of visiting the bank, you can request a new debit card through your online banking account but most online banks provide debit cards so you can easily withraw your money if needed or you can use it to pay your groceries and other purchases.

Contact Customer Service

If you need any help, online banks also offer easy access to their customer service.

There is no need to wait in line or hang on the phone for ages because most of these banking platforms offer customer service through chat or messaging, ensuring quick and efficient support.

Online Banking Services

Online banking has its perks and once you get used to using it you will realize that it will make your life easier.

Here are some of the advantages of online banking:

• Convenience: With online banking you can access your accounts 24/7, breaking free from the constraints of traditional banking hours.
• Time-Saving: You can complete your transactions in minutes that would otherwise take a trip to a physical branch that is most of the time time consuming especially here in the Philippines.
• Paperless Transactions: You can embrace eco-friendly practices by reducing the need for paper statements and receipts and you can get a copy of these through email if you opt to.
• Enhanced Security: Contrary to concerns, online banking employs advanced encryption for secure transactions.
• Higher Interest Rates: Compared to your regular banks, digital banks normally offer higher interest rates so your money can earn more than the usual 0.5% per annum interest from other banks.

Potential Concerns

While online banking offers several benefits, it’s still natural to have concerns and security is the most common concern.

I honestly have the same concerns myself even if I’ve been banking digitally for a while now but as long as you are careful and make sure you use secured internet and devices I think it’s going to be safe.

Also, with the advancements in technology, banks are implementing robust security measures, including encryption and multi-factor authentication, to ensure our financial data remains safe.

Safety Tips

While banks have your back, it’s essential to play your part in keeping your online experience secure

Here are some tips to take note of:

• Strong Passwords: Create a strong and unique password for your online account. Avoid using easily guessable information like birthdays or common words. Mix it up with a combination of letters, numbers, and symbols.
• Change Passwords Regularly: Make it a habit to change your passwords regularly. This adds an extra layer of security to your account.
• Beware of Suspicious Links: Be cautious about clicking on links in emails or messages. Cybercriminals often use phishing attempts to trick you into providing your login credentials. If something seems off, go directly to your bank’s website instead of clicking on the link.
• Enable Two-Factor Authentication: Activate two-factor authentication (2FA) for an extra layer of security when logging into your online banking account, typically through SMS or email verification.
• Keep Software Updated: Regularly update your device’s operating system, web browsers, and antivirus software to patch security vulnerabilities and protect against malware and other cyber threats.
• Use Secure Networks: Avoid accessing online banking accounts using public Wi-Fi networks or unsecured connections, especially when conducting sensitive transactions, to prevent interception by hackers.

FAQs

Is online banking in the Philippines safe?

Yes, the majority of major banks in the Philippines utilize encrypted connections, two-factor authentication, and other security measures.

Also, reputable digital banks in the Philippines are regulated by the Bangko Sentral ng Pilipinas (BSP) and employ advanced security measures to safeguard customer data.

Please check our tips above to make sure your accounts will always be safe.

Can I settle my bills through online banking?

Yes, most online banking platforms in the Philippines provide a bill payment service, allowing users to pay utility bills, credit card bills, tuition fees, and more.

What are the transaction fees for online banking?

Transaction fees vary depending on the bank and the type of transaction. While some online transfers, particularly those within the same bank, may be free, others might entail a fee (for instance, transfers via Instapay incur a fee of P25 per transaction).

What should I do if I forget my online banking password?

Most online banking platforms offer a “Forgot Password” option. You may be prompted to answer security questions or receive a verification code on your linked mobile number.

Can I open a bank account online in the Philippines?

Indeed, many banks now offer digital account opening, enabling users to initiate the account opening process online. However, certain banks may require a branch visit or video verification, depending on their specific requirements.

Do Philippine banks offer mobile banking apps?

Yes, the majority of major banks in the Philippines provide mobile banking apps that can be downloaded from the App Store or Google Play.

Are there transaction limits for online banking transfers?

For security purposes, most banks establish daily transaction limits. These limits typically range from P50,000 to P100,000. Check your chosen online bank for details.

How do I report suspicious activity or a potential scam related to online banking?

Contact your bank immediately through their official hotline or customer service email if you suspect any unauthorized activity on your account. It’s crucial to act swiftly if you believe your account security has been compromised.

Can I deposit cash into my digital bank account?

While digital banks normally does not have physical branches, they often collaborate with payment centres or other outlets to facilitate cash deposits.

How do I withdraw money from my digital bank account?

Digital banks typically issue ATM cards that can be utilized at various ATMs nationwide, or they may permit fund transfers to other local bank accounts.

How to Report suspicious activities in your online account?

If you ever notice something fishy or unauthorized transactions in your online banking account, don’t hesitate to report it. Most banks provide a helpline or an online reporting system for such incidents. Prompt reporting helps your bank take swift action to secure your account.

Conclusion

Online banking offers you the convenience, accessibility, and efficiency of managing your finances anytime, anywhere, through digital channels.

By understanding how online banking works and following best practices for safe banking practices, users you leverage the advantages of digital banking while minimizing the associated risks.

Whether you’re transferring funds to loved ones, paying bills, or checking your account balance, online banking provides a convenient and secure way to take control of your financial life in the Philippines.

Though this will make your life easier, you still have to make sure to do your part in protecting your account by following our tips.

We hope you learned a lot and have answered most of your questions about online banking.