Internet banking is also referred to as online banking. It is used for performing transactions, payments etc. With the help of the internet any bank related transaction can be done quickly and easily without stepping out of your home. There are many benefits of online banking, offering an incredible advantages to the customers.
Pros:
- Convenience: Online banking can be accessed anytime and from anywhere as these are available for 24hrs a day and 7days a week through Internet. Thus, real time accounts and any information can be accessed with a single click. This makes banking faster, easier, more effective and efficient to the customers.
- Transfers: Bank accounts can be automatically funded through the transactions done by the electronic transfer. These banks can offer unlimited transfers at no cost. They also offer direct deposits and withdrawls such as payroll deposits and automatic bill payments with an authorization accounts.
- Tools: Most online banking sites offer tools like stock quotes, insurance quotes, account aggregation, portfolio managing programs, rate alerts, etc., which helps the consumers to effectively make savings and investments and manage portfolio risks. Also, customers can effectively access and manage bank accounts, including IRAs, CDs and securities, from a secured bank website.
- Services: Banks provide services like functional budgeting, financial planning capabilities, investment analysis tools, tax preparation, loan calculators, equity trading platforms, etc. They also offer free online bill paying and online tax forms.
Cons:
- Security: In spite of banks using sophisticated encrypted software to protect customer accounts, these accounts are still subjected to hacker attacks, phishing, malware and other unauthorized activities.
- Direct Contact: Traditional banks provide direct meeting with the members of the bank regarding the customer queries, suggestions and solutions. Whereas, online banks does not provide this opportunity.
- Printing Transaction Receipt: The customer must take a print of the transaction receipt every time and keep the receipt until the online account view or bank statement confirms that the customer has successfully completed the transaction.
In spite of all these cons, Internet banking is still very popular and is being widely adapted.