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.

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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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This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

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      • profile image

        Palak Chauhan 

        6 weeks ago

        Thx it’s really really good and it helped me a lot

      • profile image

        timmywabalonglong 

        4 months ago

        thx great website

      • profile image

        puppy 

        4 months ago

        thank you

      • profile image

        guruprasad 

        5 months ago

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

      • profile image

        kaviya 

        5 months ago

        It useful to know about internet banking

      • profile image

        Ganga 

        5 months ago

        Thank you for giving good information

      • profile image

        junaid 

        6 months ago

        not bad doo some small points

      • profile image

        sokhela 

        6 months ago

        good info

      • profile image

        Vivek singh 

        7 months ago

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        hello 

        7 months ago

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      • profile image

        N Yogesh Kumar 

        7 months ago

        Thank you so much for information

      • profile image

        AARADHYA 

        8 months ago

        VERY USEFUL TO ME

        THNX

      • profile image

        Prakriti 

        8 months ago

        Thanx for this imformation it was very helpful

      • profile image

        Ayush Roy 

        8 months ago

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

      • profile image

        ARUNABH TUSHAR 

        10 months ago

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

      • profile image

        yash 

        11 months ago

        good info

        good thoughts

      • profile image

        Sai Bharat Jagtap 

        11 months ago

        Nice information

      • profile image

        Anjali thakur 

        11 months ago

        Nice information

      • profile image

        Soni 

        12 months ago

        It is useful for us

      • profile image

        Anjum 

        12 months ago

        Thank you sooooo much

      • profile image

        shipu 

        14 months ago

        thanks

      • profile image

        siri 

        14 months ago

        not bad

      • profile image

        sri 

        14 months ago

        nice

      • profile image

        Ayesha 

        14 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 

        15 months ago

        it is very usefull and nice information

      • profile image

        ethan golding 

        15 months ago

        Very useful source, full of information!

      • profile image

        Antetukumpo 

        15 months ago

        very useful indeed. well organized and presented

      • profile image

        Antetukumpo 

        16 months ago

        very efficient and very accessible and easy

      • profile image

        mbuthi 

        16 months ago

        very useful indeed. well organized and presented.

      • profile image

        RAVINDER 

        16 months ago

        it is very useful for our life

      • profile image

        shivani 

        16 months ago

        it is very usefull and nice information.

      • profile image

        Kajal 

        16 months ago

        This is nice information.

        Thank's

      • profile image

        Kajal patil 

        16 months ago

        Nice Information

      • profile image

        Anonymous 

        17 months ago

        Can it be used to send money to all countries

      • profile image

        Radha 

        18 months ago

        It is very useful for people

      • profile image

        sachin at chiria 

        20 months ago

        It is very important for all

      • profile image

        Vidya 

        21 months ago

        it is very useful for all

      • profile image

        justicemalingwa 

        21 months ago

        it is to many peoples advantages

      • profile image

        Janaki 

        21 months ago

        Thanks for Information. But Plz give more points

      • profile image

        jeff marley 

        24 months ago

        hey!

      • profile image

        elvis 

        24 months ago

        best way to bank

      • profile image

        MD. JAFOR IQBAL 

        2 years 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.

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