Telephone banking is a feature offered by many banks to make it more convenient for their clients. It involves the use of a touch-tone telephone to conduct different types of banking transactions. It is related to online banking features, although one does not need the Internet to engage in telephone banking.
Telephone banking is older than online banking. When telephone banking was first introduced, operators were necessary. However, when the telephone with a keypad became prevalent, operators became less necessary. Clients simply need to call the hotline and choose from a variety of options by pressing a number, or a series of numbers.
- Often, telephone banking allows clients to do the following without having to deal with a live teller.
- Check a bank account’s balance.
- Pay bills.
- Transfer money.
- Request for a bank statement.
- Order a new checkbook.
- Make loan payments.
- Make credit card payments.
The advantages of telephone banking are quite similar to those that online banking offers. Convenience is the main factor, as telephone banking allows clients to conduct transactions anytime and anywhere.
Before a client can access his account via the telephone, he will be required to validate his identity. Banks have their own authentication methods, ranging from Personal Identification Numbers (PINs) to usernames and passwords to voice recognition software. Before you can use telephone banking, you might have to request your bank to activate the feature first. Once you have activated this feature, you will have access to all the services offered in the telephone banking program.