A bank is an institution that has the license to receive deposits, make payments and give loans to its customer's loans. Banks also provide other financial services, like an opportunity for people to deposit their important documents and properties for save keeping currency exchange services etc.
What Is Banking
Banking is an activity that involves handling of cash deposits from customers, giving out credits to make profits from interests that accrue from such transactions. Banking also helps in providing liquidity needed by individuals and corporate bodies.
Definition Internet Banking
Internet banking is an activity that allows users to do their banking transactions on the internet. It enables customers to do their transactions anywhere without necessarily visiting any bank branch. To use internet banking facility, you must register for it while opening your account to have access to your login detail. Banks that provides it's customers the opportunity of having internet services does so not minding where the customer is but if there are internet services, they can access their bank and do their transactions smoothly.
Features Of Internet Banking
- Check the account statement online.
- Open a fixed deposit account.
- Pay utility bills such as water bill and electricity bill.
- Make merchant payments.
- Order for a cheque book.
- Buy general insurance.
- Recharge prepaid mobile/DTH.
- Use interbank Transfer
- Pay bills without writing checks
- Transfer money between your accounts
- Sign up for paperless statements
- Set up account alerts and reminders
- View images of processed checks
- View reports
- A convenient, engaging, and complete financial planning experience with Money Management.
Advantages Of Internet Banking
- Available All The Time: Most of the internet banking services can be done at any time. it is not dependent on the working hours of the bank and working days. It is always available at any time of the day and year. You can do your banking transactions any day and time without waiting for banks to open for operations before such transactions are done.
- Easy to Operate: Internet banking is easier to use in carrying out your transactions than going to the bank branches to do the normal paper works.
- It is efficient and time-saving: It takes a few minutes to do your transactions in internet banking. Even if you want to transfer money within and outside the country, it does not take time at all as far as the right login and transfer code are used. This saves time unlike the queuing in lines in the banking hall to trying to do your transactions which in some cases may take you a whole day to complete due to crowd.
- It is Convenient to use: Your transactions can be started and completed anywhere you are which will be convenient for you. It may be at the comfort of your home, while on transit or in the office, with internet services you are good to go.
- Payment of bills online: You can pay most of your bills through internet banking especially your utility bills. To make it easier and more convenient for you, while filling the form for internet banking, let the payments be automated or like a standing order that once the payment is due, the bank makes the deductions on your behalf.
- Low overhead costs: When using internet banking, banking charges will be reduced as those using internet banking may not be paying for the cost of upkeep of branches.
Disadvantages Of Internet Banking
- Technology Issues: With all the advantages stated above about internet banking, it should be of note that all those will not be achieved without an internet connection. Online banking relies on a strong internet connection. If your internet is interrupted by power failure, non-availability of bank internet services, been located in a remote area, it will be difficult for you to access your internet banking facility. Also when banks carry out maintenance on their sites, it will be difficult to do your normal transactions via the internet. Any of these interruptions will cause you not to have access to your account.
- Difficult For Beginners: Some individuals exist in their different world and are not interested in anything internet. To such a group of people, it will be difficult for them to understand what internet banking is all about. It may also be difficult for those that are beginners in using internet banking.
- Security Issues: There are good security measures set in place by financial institutions, but still they are not always reliable and are prone to hackers. With all the security measure in place, hackers can still carry out their fraudulent activities because they know how to breakdown the security of the bank.
- Difficulty In Making Deposits: Internet banking makes it difficult for customers to make deposits to their account. They still have to go the banks to make deposits.
- Lack of personal relationship with bank staff: There is every possibility that you will build a relationship with bank staff due to constant visit to the bank. In internet banking, such opportunities do not exist. This is a disadvantage because the relationship with your account officer or any bank staff is important and can help you out in some situations where you have difficulties like the application of loan and other services.
- Using Password As Security: Internet banking requires the use of passwords to unlock your platform. if the password is exposed to hackers, they will use it to commit fraudulent activities on your account. It is advisable you keep your password safe, change it regularly to avoid hackers and thieves from stealing your password.
Conclusion
With the recent move and the world trending towards becoming a global village where things will be done online. Engaging in Internet banking will be needful for your business. It is important to know in details everything about internet banking activities, how it operates, advantages and disadvantages associated with it.
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