What are the advantages and disadvantages of Internet banking ?

Online banking

The internet Banking refers to the banking services provided by the banks over the internet , Some of these services include paying of bills , the funds transfer , viewing account statement .

The 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 the banking site via the internet .

You can also use the 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

 Online Banking

Advantages of Internet banking

The banks that offer the internet banking are open for the business transactions anywhere a client might be as long as there is Internet connection , Apart from the periods of website maintenance , The  services are available 24 hours a day and 365 days round 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 hastens the banking processes hence increasing their efficiency and effectiveness .

The online banking allows the automatic funding of accounts from the long established bank accounts via the electronic funds transfers  , And the client can monitor his spending via a virtual wallet through the 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 , The online banking allows for easier updating and maintaining of direct accounts ,  The time for changing mailing address is greatly reduced , ordering of additional checks is availed and provision of actual time interest rates .

The accounts can be automatically funded from a traditional bank account via the 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 the payroll deposits and the automatic bill payment .

The online accounts are easy to set up and require no more information than a traditional bank account , Many offer 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 the  information on the subsequent checks to the same payee .

The online banking is also environmentally friendly , The electronic transmissions require no paper , So , They reduce the vehicle traffic and they are virtually pollution free , And they also eliminate the need for the buildings and the office equipment .

It is available all the time , You can perform your tasks from anywhere and at any time , even in 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 the 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 anytime , 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

The complex encryption software is used to protect the account information , There are no perfect systems , So , The accounts are prone to the hacking attacks , the phishing , the malware and the illegal activities .

The online banking is generally secure but it isn’t always secure , The identity theft is running rampant , and the 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 .

The 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 the online transactions are immediate , The online banking is subject to the same business day parameters as the 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 .

The security is the biggest concern surrounding internet banks , with the consumers worrying that the hackers will get into their account and spend their money .

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