Advantages and Disadvantages of Internet Banking

Updated on April 22, 2016

What is Internet Banking

Internet Banking refers to the banking services provided by the banks over the internet. Some of these services include paying of bills, funds transfer, viewing account statement, etc. 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. Nowadays, 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, it has become quite popular.

Banking is now no more limited in going and visiting the bank in person for various purposes like depositing and withdrawing money, requesting for account statement, stop a payment, etc. You can do all these tasks and many more using the online services offered by the banks. You can also keep a track of your account transactions and balance all the time. Now getting passbooks updated to know the total account balance is a matter of past.

Source

Various Online Services

Online banking account is easy to open and operate. The online services offered might differ from bank to bank, and from country to country. To know about the various services, always go through the welcome kit that you get at the time of opening the account. You also get the password to access your online account, which you are supposed to keep with great care for security reasons.

The common online services offered by banks are:

  • Transactional activities like funds transfer, bill pay, loan applications and transactions.
  • Non-transactional activities like request for cheque book, stop payment, online statements, updating your contact information.

Advantages of Internet Banking

Internet Banking has several advantages over traditional one which makes operating an account simple and convenient. It allows you to conduct various transactions using the bank's website and offers several advantages. Some of the advantages of internet banking are:

  • Online account is simple to open and easy to operate.
  • It is quite convenient as you can easily pay your bills, can transfer funds between accounts, etc. Now you do not have to stand in a queue to pay off your bills; also you do not have to keep receipts of all the bills as you can now easily view your transactions.
  • It is available all the time, i.e. 24x7. 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. Funds get transferred from one account to the other very fast. You can also manage several accounts easily through internet banking.
  • Through Internet banking, you can keep an eye on your transactions and account balance all the time. This facility also keeps your account safe. This means that by the ease of monitoring your account at anytime, you can get to know about any fraudulent activity or threat to your account before it can pose your account to severe damage.
  • It also acts as a great medium for the banks to endorse their products and services. The services include loans, investment options, and many others.

Disadvantages of Internet Banking

Though there are many advantages of internet banking, but nothing comes without disadvantages and everything has its pros and cons; same is with internet banking. It also has some disadvantages which must be taken care of. The disadvantages of online banking include the following:

  • Understanding the usage of internet banking might be difficult for a beginner at the first go. Though there are some sites which offer a demo on how to access online accounts, but not all banks offer this facility. So, a person who is new, might face some difficulty.
  • You cannot have access to online banking if you don’t have an internet connection; thus without the availability of internet access, it may not be useful.
  • Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet.
  • Password security is a must. After receiving your password, do change it and memorize it otherwise your account may be misused by someone who gets to know your password inadvertently.
  • You cannot use it, in case, the bank’s server is down.
  • Another issue is that sometimes it becomes difficult to note whether your transaction was successful or not. It may be due to the loss of net connectivity in between, or due to a slow connection, or the bank’s server is down.

Internet Banking has definitely made the life easy for users by providing online access to various banking services.

Do you use Internet Banking?

  • 45% Yes, almost always
  • 17% Rarely
  • 38% No
4,032 people have voted in this poll.

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      timmywabalonglong 

      2 months ago

      thx great website

    • profile image

      puppy 

      2 months ago

      thank you

    • profile image

      guruprasad 

      2 months ago

      Thank you for your information about internet banking it more helpful information

    • profile image

      kaviya 

      3 months ago

      It useful to know about internet banking

    • profile image

      Ganga 

      3 months ago

      Thank you for giving good information

    • profile image

      junaid 

      4 months ago

      not bad doo some small points

    • profile image

      sokhela 

      4 months ago

      good info

    • profile image

      Vivek singh 

      4 months ago

      Thanks for the information

    • profile image

      hello 

      5 months ago

      Thank u so much for this information.it was very useful for me to get access to my exams.by the usage of this facts which i could study..

    • profile image

      N Yogesh Kumar 

      5 months ago

      Thank you so much for information

    • profile image

      AARADHYA 

      5 months ago

      VERY USEFUL TO ME

      THNX

    • profile image

      Prakriti 

      5 months ago

      Thanx for this imformation it was very helpful

    • profile image

      Ayush Roy 

      6 months ago

      Thank you for giving me the real disadvantages and the advantages of internet banking ...!!!

    • profile image

      ARUNABH TUSHAR 

      8 months ago

      Thanks for solving my problems, after read your article now i am going to use internet banking

    • profile image

      yash 

      9 months ago

      good info

      good thoughts

    • profile image

      Sai Bharat Jagtap 

      9 months ago

      Nice information

    • profile image

      Anjali thakur 

      9 months ago

      Nice information

    • profile image

      Soni 

      10 months ago

      It is useful for us

    • profile image

      Anjum 

      10 months ago

      Thank you sooooo much

    • profile image

      shipu 

      12 months ago

      thanks

    • profile image

      siri 

      12 months ago

      not bad

    • profile image

      sri 

      12 months ago

      nice

    • profile image

      Ayesha 

      12 months ago

      This is very useful and helpful to every one

      By using this we can save our time also and our work also finish soon.

      Thanks for this Facilities.

    • profile image

      Shubham M G 

      13 months ago

      it is very usefull and nice information

    • profile image

      ethan golding 

      13 months ago

      Very useful source, full of information!

    • profile image

      Antetukumpo 

      13 months ago

      very useful indeed. well organized and presented

    • profile image

      Antetukumpo 

      13 months ago

      very efficient and very accessible and easy

    • profile image

      mbuthi 

      13 months ago

      very useful indeed. well organized and presented.

    • profile image

      RAVINDER 

      13 months ago

      it is very useful for our life

    • profile image

      shivani 

      14 months ago

      it is very usefull and nice information.

    • profile image

      Kajal 

      14 months ago

      This is nice information.

      Thank's

    • profile image

      Kajal patil 

      14 months ago

      Nice Information

    • profile image

      Anonymous 

      15 months ago

      Can it be used to send money to all countries

    • profile image

      Radha 

      15 months ago

      It is very useful for people

    • profile image

      sachin at chiria 

      17 months ago

      It is very important for all

    • profile image

      Vidya 

      18 months ago

      it is very useful for all

    • profile image

      justicemalingwa 

      18 months ago

      it is to many peoples advantages

    • profile image

      Janaki 

      19 months ago

      Thanks for Information. But Plz give more points

    • profile image

      jeff marley 

      21 months ago

      hey!

    • profile image

      elvis 

      21 months ago

      best way to bank

    • profile image

      MD. JAFOR IQBAL 

      24 months ago

      it was very useful for me , Thank you very much

    • profile image

      michelle takyo 

      2 years ago

      e-banking is a very good system

    • profile image

      tamuyfguoi 

      2 years ago

      good

    • profile image

      Geetha 

      2 years ago

      e banking is difficult but for of emergency it very useful.............

    • profile image

      Geetha 

      2 years ago

      The first time using net banking is bit difficult.

    • profile image

      ewan may 

      2 years ago

      How is no on 40

    • profile image

      Mio 

      2 years ago

      Thank you for this helpfull information.

    • profile image

      sony rao 

      2 years ago

      internet banking is so fast and convenience transaction..it is very useful for me

    • profile image

      3G 

      2 years ago

      very useful, thank you

    • profile image

      Adithyan 

      2 years ago

      Very short and effective information's .Thank you

    • profile image

      mushaya abbie 

      2 years ago

      very useful, thank you very much

    • profile image

      VISHALINI DHARUMAN 

      2 years ago

      NO,I DON'T KNOW HOW TO USE E BANKING.BUT,I HAVE STUDIED THIS CHAPTER IN MY UG COURSE.

    • profile image

      pigeon 

      2 years ago

      really very helpful

    • profile image

      Jagjeet kataria 

      2 years ago

      It make easy life & save our precious time.

    • profile image

      brunomaizer 

      2 years ago

      thanks a lot

    • profile image

      priyanka 

      2 years ago

      yep, it was helpful but some features of net banking can be added to make it more appropriate

    • profile image

      peehu 

      2 years ago

      I used in very rare cases...

      And that time i got my best process by e banking....

    • profile image

      karthi 

      2 years ago

      very useful this page

    • profile image

      Husen basha 

      3 years ago

      Afcourse it is very helpful for all.

    • profile image

      anita saji 

      3 years ago

      This is very useful to me

    • profile image

      amulya 

      3 years ago

      this is advatage for me

    • tipstoretireearly profile image

      tipstoretireearly 

      6 years ago from New York

      Internet banking has important disadvantages. First, it can be difficult getting a bank or cashier's check if you don't have access to a bricks-and-mortar bank. Second, it can be difficult to get other personalized banking services such as signature guarantees. A good solution is to open a no-fee checking account at a local brick-and-mortar bank to get access to such personalized services, but do the majority of your banking online.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://toughnickel.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)