All the banking functions done between a bank and its client online, refers to Internet Banking. It is therefore known also as online banking. Such a method speeds up the banking activities, extends you the wonderful opportunity of using bank services in the comfort of your home, or even if you are traveling far away you can still conduct business. Thus it is one of the most efficient forms of modern banking.
For online banking, customers are provided with a distinct user name and a password, so that they can log on to the website and access their account. You can transact online. This type of banking system online is available in many important banks, nowadays. Though this banking is popular, there are still some hazards in this system, as some security issues can prove to be dangerous to people who do not know much of this kind of banking. If you forget to log out or use the account through insecure lines, there is possibility of unscrupulous people accessing and misusing your account. Keep changing your password, as often as possible.
Despite the popularity of this banking system, people are still wary to use it. Even if they my have gotten a loan online, transacting and committing money online, can be something they feel uncomfortable with. Many prefer to follow the way their grandfathers transacted. It is unlikely that this banking will revolutionize all our banking habits, but it has reduced queues, and saved time.
Banks are trying to attract people to this mode, through many secured functional systems. It is just not appealing to those people who can not forget about the smile of the bank manager and, the peace of mind of a tellers window. Only when they decide they can switch over to Virtual banks, which exist only on the internet can it become their favorite mode of banking.
In fact the money saved on overhead costs is passed by some online banks as higher interest yields to your account, or lowering fees for services. Though these virtual banks can equal the traditional bankers in every respect, as far as ATMs are concerned they are at a disadvantage. Let us look at some advantages and disadvantages in this Banking.
On the advantages front, we can include, convenience, available twenty four seven. The ability to transact even if you are thousands of miles away. Great speed in services, efficiency and effectiveness. There are added services which online banking provides that include stocks trading, and rate alerting, stock quotations, portfolio management, and so forth.
There are disadvantages like start up hiccups since banks insist on signing forms and showing proof of identity. At times navigating on these sites is difficult. Trusting online banking is a major hurdle. People wonder did the transaction go through, did they push the button twice. Eliminate these by asking for a print out. Another major concern is of security. To give confidence this has to be addressed and reassure people that their money is safe.
Along with conventional methods of banking, Internet Banking is going to live with us. We should learn to utilize this system efficiently and save time, efforts and in the process be modern in our transactions.