simple terms Internet Banking means banking activity carried on between the clients and the banks online. Thus it is also known as online banking. This way of banking helps to insure you have a speedy and personal process of banking activities. This gives you the luxury of using banking services from your house, or even when you are traveling far away from your home.
Some banks provide you with a user name and password to enable you to log in and access your account. While others may allow you to set this information up yourself. You can leave instructions online for any transaction. These days, all important banks have this kind of online banking system. Despite its popularity this banking system is hazardous since there are security issues which can be disastrous to incautious people. If you do not log out or using the bank account in an insecure connection, someone can access your account and misuse it. As a precautionary measure you should keep on changing the password, as often as possible.
Though you have heard about this online banking system, you may be wary to use. You might have availed an online loan, but as far as committing money, you still feel comfortable to do it the way your grandfathers banked. Though this kind of banking is not going to bring a revolution in your monetary habits, it has obviated the time consuming processes of traditional ways so that you are able to handle financial issues efficiently.
By offering fully secured, functional systems, free of cost, banks are attracting people to use this mode of banking. Just not all are ready to give up the tellers window in the banks, or forget about the smiling bank manager. The virtual banks which exist only on the internet, can extend a great amount of services.
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.
The advantages include: convenience, available twenty four hours a day seven days a week, three hundred and sixty five days of the year. Even if you are away, and facing a fiscal problem, you can get it redressed through the internet from any part of the world. There is speed in doing online transactions, every branch works efficiently online, and is usually very effective. Some online banking services include, stock trading, quotes and rates alerting, portfolio management, and so on.
The disadvantages may include start up difficulties, because banks insists on signing forms, providing identity proof, and a power of attorney, in case you want your spouse to look into your account. At times navigating on these sites is difficult. The major disadvantage, is in trusting online banking, as you wonder whether the transaction has gone through, whether you have pushed the button once or twice. In order to eliminate these concerns, a print out of your application can be done and you can mail it in. Especially if internet security is also a concern you may have.
Internet Banking is here to stay, along with many other great online features we now have at our disposal.