Internet Banking - Advantages and Disadvantages

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, internet banking 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 internet banking 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.

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

The common internet banking 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.

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

• Internet banking account is simple to open and easy to operate.

• Internet banking 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.

• Internet banking 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 internet connection.

• Internet banking 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.

• Internet banking is also a great medium for the banks to endorse their products and services. The services include loans, investment options, and many others.

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 internet 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 use internet banking, but all does not offer this facility. So, a person who is new to internet baking might face some difficulty.

• You cannot have access to internet banking if you don’t have an internet connection; thus without the availability of internet access, internet banking 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 getting your net banking 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 internet banking, 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 internet 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.