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Starting a Bank
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Online Banks 


Branch Evolution

We live in an age where most everything can be done from the palm of your hand, from purchasing movie tickets to buying groceries and having them delivered right to your home. This is no different for banking, causing a shift in focus to online banks as part of an ongoing branch evolution. Online banks reduce the necessity of the brick-and-mortar banking experience, but they do offer everything else that most traditional banks do. While they do not offer live assistance in a face-to-face environment, they do offer assistance over the phone.

To remain relevant in a digitally driven environment, banks are likely to expand beyond their traditional branch walls. How banks respond to these new developments will play a major role in branch evolution. Online Banks offer effective cloud based solutions, a mobile application so consumers can check statements and transfer money seamlessly, and secure access to their online banking at all times. Bank owners should take advantage to deliver a broader set of services – which may include third-party services – to their consumer base.

Reasons to Start an Online Bank

  • Convenience: Direct banks are open for business anywhere there is an internet connection. Other than times when website maintenance is being done, they are open 24 hours a day, 365 days a year. If internet service is not available, customer service is normally provided around the clock via telephone. Real-time account balances and information are available at the touch of a few buttons. This makes banking faster, easier, more efficient and even more effective because consumers are able to always stay on top of their account balances. Updating and maintaining a direct account is also easier. It takes only minutes to change your mailing address, order additional checks and check for current interest rates.
  • Better Rates: The lack of significant infrastructure and overhead costs allow direct banks to pay higher interest rates on savings and charge lower mortgage and loan rates. Some offer high-yield checking accounts, high-yield CDs and no-penalty CDs for early withdrawal. Some accounts can be opened with no minimum deposits and carry no minimum balance or service fees. (To learn how to choose a bank that won't charge you unnecessary fees, check out Choose To Beat The Banks.)
  • Services: Direct banks typically have more robust websites that offer a comprehensive set of features that may not be found on the websites of traditional banks. These include functional budgeting and forecasting tools, financial planning capabilities, investment analysis tools, loan calculators and equity trading platforms. They also offer free online bill paying, online tax forms and tax preparation.
  • Mobility: Online banking now includes mobile capabilities. New applications are continually being created to expand and improve this capability on smartphones and other mobile devices.
  • Transfers: Accounts can be automatically funded from a traditional bank account via electronic transfer. Most direct banks offer unlimited transfers at no cost, including those destined for outside financial institutions. They will also accept direct deposits and withdrawals that you authorize, such as payroll deposits and automatic bill payment.
  • Ease of Use: Online accounts are easy to set up and require no more information than a traditional bank account. Many offer the option of inputting your data online or downloading the forms and mailing them in. If you run into a problem, you have the option of calling or emailing the bank directly. One advantage of using online checks is that the payee's information is retained, which eliminates having to reenter information on subsequent checks to the same payee.​

​​​​​​​​​​​​​​​​​​​​​Banks that embrace consumer engagement through online and mobile app access will be well positioned to provide a breadth of personalized financial services to better meet changing consumer demand trends. Jack Henry Banking’s solutions provides convenience, personalization, speed, and scale that are expected by today’s digital-first consumer. 
Move forward with your bank’s branch evolution today with Jack Henry Banking. With customizable resources and unparalleled customer service, Jack Henry Bank gives your branch the tools it needs to succeed online and beyond. 

In The News
Read more about starting a bank


Charleston-area Beacon Community Bank joins trend of de novos selecting Jack Henry Banking​

Are De Novo Banks on the Rise? - by Cheryl Winokur Munk, Independent Banker

 
Prices Rise for De Novo Banks - by Bill Poquette, Banknews.com

 
De Novo Field Widens with S.C. Group's Application - by John Reosti, American Banker

 
FDIC Releases Final De Novo Handbook - by ABA Banking Journal

 
2017 Likely to be a Record-Breaking Year for De Novo Banks - by Try Sullivan, TRUPOINT Partners

 

 

 
The Bank of Austin Files to Become City's Newest Bank - Will Anderson, Austin Business Journal

 
De Novo Bank Overview - by BKD​
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