In simple terms, online banking or internet banking is the means to manage money online or through your mobile or computer. An online bank offers customers just about every service traditionally available through a local branch, including deposits to online bill payment. Banks pay a leading role in this paramount shift.
Online Banking services:
Account Opening: You can open checking, savings, and other accounts online, without the need to print or sign any documents.
Pay bills: You can transfer amounts to your vendors even monthly payments can go out easily online.
Transfer funds: Need to move money , you can link bank accounts at different banks and your own banks online.
Apply for loans: Loans can be got by a click of a button, the stacks of paperwork is history. Type in your information, which will speed the process of checking your credit, and your bank will get back to you very quickly.
Get good rates: Online banks have more competitive rates and its a good idea to compare it to traditional bank rates before taking a decision. Most of the times the online rates will be lower.
Deposit checks: Take a photo of the check and submit it to your bank for payment, it’s that simple. No need to visit a branch or mail the check in.
Keep track and stay informed: Through sms banks send in notifications or you can use the bank apps to keep track of all the transactions online. Everything is clear from you online statements.
Service Fees: Online banking services typically cost less than traditional banks.
Advantages of Online Banking
- Convenience is a big advantage, consumers can perform banking transactions 24 hours and through out the week.
- Online banking is fast and efficient. Funds can be transferred between accounts almost instantly.
- Accounts can be monitored very closely. This allows consumers to keep their accounts safe.
- Allows for the opening and closing of fixed deposit and recurring deposit accounts that typically offer higher rates of interest.
Disadvantages of Online Banking
- For consumers who are not computer literate, it is difficult.
- There are high online banking security levels , still there are cases of hacking and fraud. Unauthorised access is a major concern for online users.
- Internet Connectivity issues may make it difficult to determine if banking transactions have been successfully processed.
- At some occasions the consumers may prefer face to face interaction.