What are advantages & disadvantages of Internet banking (Online banking)?
Internet Banking refers to banking services provided by banks over the internet, Some of these services include paying of bills, funds transfer, viewing account statement, Banks also deliver their latest products and services over the internet, Internet banking is performed through a computer system or similar devices that can connect to banking site via the internet.
You can also use Internet banking on your mobile phones using a Wi-Fi or 3G connection, With the ease of availability of cyber cafes in the cities, and it has become quite popular, Online banking is also environmentally friendly, The electronic transmissions require no paper, So, They reduce vehicle traffic and they are virtually pollution-free, and they also eliminate the need for the buildings and the office equipment.
Advantages of Internet banking
Banks that offer Internet banking are open for business transactions anywhere a client might be as long as there is an internet connection, Apart from the periods of website maintenance, The services are available 24 hours a day and 365 days around the year.
If the internet connection is unavailable, The customer services are provided round the clock via the telephone, where the actual time account balances and the information are availed, This has tens banking processes hence increasing their efficiency and effectiveness.
Online banking allows automatic funding of accounts from long-established bank accounts via electronic funds transfers, and the client can monitor his spending via a virtual wallet through certain banks and the applications and enable the payments.
The speed of transaction is faster relative to use of ATM’s or the customary banking, Online banking allows easier updating and maintaining of direct accounts, The time for changing mailing address is greatly reduced, ordering of additional checks are availed and provision of actual time interest rates.
The 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 the direct deposits and withdrawals that you authorize such as payroll deposits and automatic bill payment.
Online accounts are easy to set up and require no more information than a traditional bank account, Many offer options 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 the information on the subsequent checks to the same payee.
It is available all the time, You can perform your tasks from anywhere and at any time, even in the night when the bank is closed or on holidays, The only thing you need to have is an active internet connection, It is fast and efficient, The funds get transferred from one account to the other very fast, and you can also manage several accounts easily through Internet banking.
You can control your transactions and the account balance all the time, This facility also keeps your account safe, You can monitor your account at any time, you can know about any fraudulent activity or threat to your account before it can pose your account to severe damage.
Disadvantages of Internet banking
Complex encryption software is used to protect the account information, There are no perfect systems, So, The accounts are prone to hacking attacks, phishing, malware & illegal activities, Online banking is generally secure but it isn’t always secure, Identity theft is running rampant, and banks are by no means immune, and when your information is compromised, It can take months or even years to correct the damage, and it can cost you thousands of dollars.
Customer service can be below the quality that you’re used to, Some people take comfort in being able to talk to another human being face-to-face if they experience a problem, Although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be quite irritating to many.
Not all Online transactions are immediate, Online banking is subject to the same business day parameters as traditional banking, So, printing out and keeping the receipts is still very important, even when banking online.
Identity theft is a significant concern but some online banks take this risk more seriously than others, Before opening an online account, thoroughly investigate the bank’s security policies and protections to ensure they meet your expectations, Security is the biggest concern surrounding internet banks, with the consumers worrying that hackers will get into their account and spend their money.