Online Only Banks; Things To Know Before Making The Switch In 2020

SAN FRANCISCO (KPIX) — 2020 may be the year for you to kick start your finances. For many, that may mean making the move to online banking.

"I can't think of one con for online banking. I really can't", explained CBS News Business Analyst Jill Schlesinger.

For Jill, it's all about the security and convenience you get with online banking.

"First of all when you bank online you're probably using better security and better security systems," explained Schlesinger. "The number two thing is that you can automate so much of the way that you manage your financial life."

Schlesinger added that many online banks actually have higher interest rates than brick and mortar because they don't have to pay the overhead for a physical branch location.

"I guess that if you really want to walk into a place in this day and age that you may be able to find a brick and mortar location that would work for you.," she said. "But generally speaking, I recommend to most people as much as possible, put all of your finances online, automate everything and keep track of it."

One aspect of online banking that has some nervous, is the quick access to cold-hard cash.

"A lot of online institutions partner with places where you can actually withdraw cash," Schlesinger explained. "But again, I have to say, that in a world where we're using square and the Cash App and Venmo, I think that more and more the society is moving towards cashless than having cash in your pocket."

While turning to the world of online banking may be a trend for the new year and decade for some, Schlesinger also made other financial predictions.

She foresees a continuation the worlds finance and technology are intersecting. Formerly known as  fin-tech, we're now  just calling it business.

Schlesinger also sees Amazon making a push into the financial services realm. We've already seen another tech giant do this, when Apple partnered with Goldman Sachs. Schlesinger is looking for the moment when financial institutions get more nervous about this.

Lastly, Schlesinger's final prediction- saying goodbye to big commission broker charges. She believes those fees should go away, and sees some have already done so.