Internet Banking can be defined as the online banking activity carried on between the bank and the client. Thus, it is also known as online banking. This method speeds the activities of banking ans gives you an opportunity to use banking services from your home, or even when you are away from your place of business. There is efficiency in banking services online.
When you want to use online banking, you are given a distinct user name and a password, to enable you to log on the website of the bank and get access to your account. Now you can conduct online transactions. Many important banks extend this facility to clients, these days. In spite of the popularity of this banking, it is also hazardous, as there are still some security matters which can be dangerous for people who are fresh to this method of banking. Suppose you forget logging out after your transactions, or use insecure lines to access your account, you may be leaving room for unauthorized people to access your account and misuse it. Therefore, you should keep on changing the password, quite often.
In spite of this system being popular, many people are still cautious about using it. Such people might have used online services for loans, but when it is about transacting money through internet, they still feel uncomfortable. Thus they would like to adopt the banking methods which their grandfathers pursued. Though this system has failed to revolutionize our banking methods, it has certainly reduced queues and time consuming processes.
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.
Some banks pass on the money saved on overheads, to the online clients as higher yields in interest, or service fees reduced drastically. While these virtual banks equal the traditional banks in every other respect, such as ATMs, they are at a disadvantage. Let us examine some advantages and disadvantages of this Banking.
As far as advantages are concerned, there is convenience, banking is accessible twenty four seven, you can transact from thousands of miles away, services are speedy, there is efficiency and effectiveness. Also they provide services like trading stocks, alerts for stock rates ad stock quotes, portfolio management, etc.
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.
Find out more about absa internet banking. You can also check out entry level finance information.