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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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Comments

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    • profile image

      Anonymous 11 days ago

      Can it be used to send money to all countries

    • profile image

      Radha 4 weeks ago

      It is very useful for people

    • profile image

      sachin at chiria 3 months ago

      It is very important for all

    • profile image

      Vidya 3 months ago

      it is very useful for all

    • profile image

      justicemalingwa 3 months ago

      it is to many peoples advantages

    • profile image

      Janaki 4 months ago

      Thanks for Information. But Plz give more points

    • profile image

      jeff marley 6 months ago

      hey!

    • profile image

      elvis 6 months ago

      best way to bank

    • profile image

      MD. JAFOR IQBAL 9 months ago

      it was very useful for me , Thank you very much

    • profile image

      michelle takyo 10 months ago

      e-banking is a very good system

    • profile image

      tamuyfguoi 10 months ago

      good

    • profile image

      Geetha 10 months ago

      The first time using net banking is bit difficult.

    • profile image

      ewan may 10 months ago

      How is no on 40

    • profile image

      Mio 10 months ago

      Thank you for this helpfull information.

    • profile image

      sony rao 10 months ago

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

    • profile image

      3G 11 months ago

      very useful, thank you

    • profile image

      Adithyan 11 months ago

      Very short and effective information's .Thank you

    • profile image

      mushaya abbie 12 months ago

      very useful, thank you very much

    • profile image

      VISHALINI DHARUMAN 12 months ago

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

    • profile image

      pigeon 13 months ago

      really very helpful

    • profile image

      Jagjeet kataria 13 months ago

      It make easy life & save our precious time.

    • profile image

      brunomaizer 14 months ago

      thanks a lot

    • profile image

      priyanka 15 months ago

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

    • profile image

      peehu 16 months ago

      I used in very rare cases...

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

    • profile image

      karthi 19 months ago

      very useful this page

    • profile image

      Husen basha 22 months ago

      Afcourse it is very helpful for all.

    • profile image

      anita saji 23 months ago

      This is very useful to me

    • profile image

      amulya 2 years ago

      this is advatage for me

    • tipstoretireearly profile image

      tipstoretireearly 5 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.