Account alerts

New age banking has gained tremendous momentum even since the inception of the ‘alerts’ facility by banks.

Let us take case of VR a 35 year old, who is not only working in an IT firm but is also a responsible home-maker and mother of two. Traveling between her work and homes takes up her entire day, leaving her with little or no time to efficiently track and manage her savings, credit card and loan accounts with her bank. Her busy schedule has, in the past, some times led to an unintentional delay in credit card payments on her part, as well as an instance of her monthly loan installment check bouncing due to in sufficient funds in her savings bank account. But ever since her bank introduced the ‘transaction alerts’ service VR is a happy woman. This is because she now receives timely intimation from her bank by way of an SMS (Short Messaging Service) on her mobile or through an e-mail with respect to many important transactions taking place in all her accounts with the bank. She can’t help but smile since late payments, check bounces and other inordinate banking problems are now a thing of the past.

The ‘transaction alerts’ facility extended by most banks will come across as timely action taking device for the bank customers.

High End Technology- Bank Alerts:

The process of banking has evolved stupendously, thanks to advancement in technology. Major breakthrough in the Information technology (IT) and communications sector such as the advent of the internet/e-mil and the mobile phone, respectively, have changed the way banking transactions are conducted today. With more and more banks embracing these technological developments to offer faster and more efficient services, transaction banking has taken on a new meaning. ‘Account Alerts’ offered by banks is one such service which has revolutionized the method of dissemination of important transaction information to customers.

For all major ‘Debit’ and ‘Credit’ Transactions Alerts are sent out:

Transaction alerts are sent across by banks either as text messages on cell phone and/or as e-mails to e-mail address of the customers. These alerts are triggered by all major deposits and withdrawals that take place in the account. Deposits such as salary credit, checks deposit and clearance, cash deposits, an Electronic Fund Transfer (EFT) into the customer’s account, interests and dividends received from investments, etc., are some of the common alerts sent out for credit transactions.

Similarly some of the debit transaction alerts include checks issued and cleared, EFT from customer’s account to another; cash withdrawals, credit card/utility bill payments made, purchases made on debit cards, etc.

The scope of these alerts varies from bank to bank.

Today banking account acts like a ‘hub’ for all your financial transactions and there can be an average of 10-15 transactions that take place in an account every month. In this scenario, a timely alert received for the account activities can prove particularly beneficial and can help prevent a potential monetary loss as well to the Account holder. For instance, if account does not meet the Average Quarterly Balance (AQB) requirements of the bank, an instantaneous mobile or e-mail alert notifying the holder about the same can remind him or her to deposit money immediately and thereby, save him or her from paying the penalty for non-maintenance of the AQB.

The alert service also saves precious time that would have otherwise spent in sending a request to the bank and waiting for the bank’s response to it.

Alerts provision cost the Account holder:

The service of ‘account alerts’ is currently being offered for free by most leading banks. However; a few banks do levy a one-time registration charge for activating this facility and/or a regular quarterly or annual charge to keep the service active. The fee involved is a nominal amount and is certainly worth while when compared against the benefits that these alerts offer.