Introduction:
Online banking is the process in which a financial institute allows its customers to perform functions in relation to their accounts through the internet using a secure web portal. These portals may allow the customers to perform simple functions such as viewing the balance in the account to performing a complicated transaction using multiple accounts. With time, the technology used in implementing online banking as well as the services offered through these web portals will change rapidly and would attract more and more people in the future.
Functions performed through an online portal:
When considering what functions are performed through the online banking systems, following can be readily highlighted.
Viewing of account balances
Perform fund transfers
Bill payment
Give standing orders
Invest money in financial markets
Order check books and credit cards
Link up multiple bank accounts through a single online account…..and many more.
Although not all banks allow such services through their web portal to its customers most recognized banks would and are gradually seeking the possibility of introducing more services through the same web portals.
How does it work?
The internet banks can be of two types and most often it will be a virtual representation of an actually bank with a physical existence. The other type would be a legitimate online bank which does not have a physical presence. In both these instances, the services offered would be rather same whereas in ‘virtual only banks’, the absence of their own ATMs will cause inconvenience at times of withdrawing and depositing money.
In any instance, the initial process of opening an online account would take a little while more than establishing a usual bank account and will include filling up several forms as well. Following establishing an internet account, you have to keep a username and a password for the online account and change the password from time to time to prevent a third party getting hold of the same.
The web portals are usually user friendly although it will takes a while for someone not so competent in computer use to become familiar. At the same time, these sites will be encrypted which means that the data handled through the web portal will be coded and would be incomprehensible to a third party.
Advantages of internet banking:
Following are some of the advantages seen in online banking,
Saves time
Efficient
More control over funds
Lower cost
Available 24/7
Real time transactions
Can be accessed from any place
Disadvantages of internet banking:
While having so many advantages or benefits, it is possible for internet banking to display certain disadvantages as well. The following are some of these.
Need certain amount of computer knowledge
Safety concerns
Delay in customer support
Possible charges for online transactions
Technical breakdowns…etc
Conclusion:
Considering all the facts in relation to online banking, it is apparent that there is no stopping in its proliferation and in the future it is possible that it might replace many of the physically located banks in the present time.