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Advantages and Disadvantages of Internet Banking

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.

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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?

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Comments 25 comments

tipstoretireearly profile image

tipstoretireearly 4 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.


amulya 17 months ago

this is advatage for me


anita saji 13 months ago

This is very useful to me


Husen basha 12 months ago

Afcourse it is very helpful for all.


karthi 9 months ago

very useful this page


peehu 6 months ago

I used in very rare cases...

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


priyanka 6 months ago

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


brunomaizer 5 months ago

thanks a lot


Jagjeet kataria 4 months ago

It make easy life & save our precious time.


pigeon 3 months ago

really very helpful


you are gadha 3 months ago

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VISHALINI DHARUMAN 3 months ago

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


mushaya abbie 2 months ago

very useful, thank you very much


Adithyan 8 weeks ago

Very short and effective information's .Thank you


3G 7 weeks ago

very useful, thank you


jayani weerasinghe 6 weeks ago

this informations are helpfull to my research topic.thanks for your information.


sony rao 5 weeks ago

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


Mio 5 weeks ago

Thank you for this helpfull information.


ewan may 5 weeks ago

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Geetha 3 weeks ago

The first time using net banking is bit difficult.


Geetha 3 weeks ago

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


tamuyfguoi 3 weeks ago

good


kkkk 3 weeks ago

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michelle takyo 2 weeks ago

e-banking is a very good system

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