Advantages and Disadvantages of Internet Banking
Bank Online by splinder · Leave a Comment
The most popular type of banking done today is internet banking. While this opportunity has only been available over the past 15 years, currently about 70% of all American households use banking of this type. With this being so popular, finding a reputable bank online is easy. With this, you could remaining with your existing bank, one that provides internet banking products and services, or choose a bank that operates only online. No matter the direction you go, it would be important to understand the advantages and disadvantages of this service.
For starters, internet banking is extremely convenient. Literally from the comfort of home while sitting in your pajamas and sipping coffee, you could log onto the bank’s website to handle all your banking needs. Another advantage of internet banking is speed. As long as you have high-speed internet, you would be connected in seconds and have money transferred, balances checked, or loans applied for in no time. Compared to getting the same things done with a traditional bank, the amount of time you would save is tremendous.
Internet banking is also very cost-efficient. Chances are you already have a computer and internet connection so there would be no added expense there. Then, to log onto the bank’s website would cost nothing. The only fees you may pay would be for submitting a loan application or transferring money. Of course, if you were to request a copy of your checks or statement, or order cashier, traveler, or bank account checks a fee would be charged.
You would also enjoy flexibility of being able to deal with bank issues whenever you want and not when the bank says you can. Unlike conventional banks, those with online services are open 24 hours a day, 7 days a week, and 365 days a year. Therefore, you could log on in the middle of the night on Christmas Eve if wanted and still be able to complete most transactions. Now, the only exceptions would be moving money or making an ACH deposit in that some delay would be expected. However, overall internet banking provides far more flexibility based on your schedule. Along with this, you could handle bank issues from home, work, or if vacationing on a foreign island, as long as you have a computer and internet connection.
Along with advantages of internet banking, some disadvantages exist. For one thing, if you wanted to stay with your own bank, the account would need an Internet Service Provider, also referred to as an ISP. Additionally, if you were interested in changing banks whereby money needed to be transferred from existing accounts to the new online accounts, the process can be somewhat challenging. You would also find that if you want to use the online bank account to pay bills, the setup process is time-consuming.
Another potential issue associated with internet banking has to do with security. Although the top online banks use only the latest and most robust security software, unfortunately some do not. Therefore, anyone who is considering internet banking needs to learn the security system in place so personal and financial information would be 100% protected. As long as the right system is in place, there is very little risk. Breeze by Standard Chartered Bank has added additional safeguards with their online banking products that give their customers a sense of safety and security
To determine whether an online bank is secure, there are actually three specific ways. For one thing, you would need to look at the bank’s homepage. In the address bar, the beginning part of the website may start with an http:// or an https://. The “s” stands for “security” so if it shows up as https://, you know the site is protected. However, if the site starts with http://, if it changes to https:// once you log into your account, then the site is protected but if not, you need to consider a different bank in that your information and money would be at risk.
Secondly, look on the bank’s homepage and in the bottom, left-hand corner you should see an icon that looks like a padlock. This too would be an indicator that the site is safe. Finally, look for certain words that would indicate the company providing the bank with online protection. For instance, VeriSign is the one that most banks use. In this case, you may see a gold seal or the words “VeriSign Secure Site”.
Overall, internet banking or online banking offers far more advantages than disadvantages but because there are a few negative aspects, only you could decide which bank would be best for your specific needs.
