In the olden days, people need to go to bank for every banking transaction. Sometimes they may find that the banks are closed or the banking hours are not suitable for then or the location isn’t convenient for them. To avoid these difficulties, there is one solution, ONLINE BANKING.
With the development of technology and the internet particularly, you don’t have to visit the bank personally, you can use internet banking. Online banking is defined as banking transaction though the internet. You can access your bank account via internet by registering yourself with you bank for online banking.
Origin of Online banking
The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate millions of daily transactions; today, often the only paper record is the customer's receipt at the point of sale. Now that its customers are connected to the Internet via personal computers, banks envision similar economic advantages by adapting those same internal electronic processes to home use. Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment
This new concept of banking means a self service attitude of banking. In online banking the customer is the sole financial controller of his own finance and life. The customer performs his own banking transactions by using the internet. We can book tickets of railways, buses, airlines to any place in the world, we can shop anything and everything with online banking and also make payments online. All banking transactions can be carried out with online banking. This online service is provided by almost all the banks, 24 hours a day and 7 days a week. This service gives the customer the freedom of timings you can pay your bills or even make purchases at any point of time and any day at your convenience.
Brick-to-click bank: Today, most large national banks, many regional banks and even smaller banks and credit unions offer some form of online banking, variously known as PC banking, home banking, electronic banking or Internet banking. Those that do are sometimes referred to as "brick-to-click" banks, both to distinguish them from brick-and-mortar banks that have yet to offer online banking, as well as from online or "virtual" banks that have no physical branches or tellers whatsoever. The challenge for the banking industry has been to design this new service channel in such a way that its customers will readily learn to use and trust it. After all, banks have spent generations earning our trust; they aren't about to risk that on a Web site that is frustrating, confusing or less than secure. Most of the large banks now offer fully secure, fully functional online banking for free or for a small fee. Some smaller banks offer limited access or functionality; for instance, you may be able to view your account balance and history but not initiate transactions online. As more banks succeed online and more customers use their sites, fully functional online banking likely will become as commonplace as automated teller machines
Convenience: online banking sites never closes. They are available 24hour a day, seven days a week and they are only a mouse click away.
Ubiquity: if your are out of state or even out of the country when a money problem arises, you can log on instantly to your online bank and take care of the business 24/7.
Transaction speed: online bank sites generally execute and confirm transactions at or quicker than ATM processing speeds.
Efficiency: you can access and manage all of your bank accounts, including IRAs, CDs, even securities from one secure site.
Effectiveness: many online banking sites now offer sophisticated tools, including account aggregation, stocks quotes, rates alerts and portfolio managing programs to help you manage all of your assets more efficiently. Most are also compatible with money managing programs such as Microsoft money.
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| higher perecentag of online banking |
Disadvantages of online banking.
Start-up may take time: In order to register for your bank online program, you will probably have to provide ID and sign a form at Bank branch.
Learning curve: banking sites can be difficult to navigate at first. Plan to invest some time and/or read the tutorial in order to become comfortable in your virtual lobby.
Bank sites changes: even the largest bank periodically upgrades their online programs, adding new features in unfamiliar places. In some cases you many have to re-enter account information.
The trust thing: for many people, the biggest hurdle to online banking is learning to trust it. Did my transaction go through? Did I push the transfer button once or twice?
Security: even with the tops of the line of security online banks offer, the risk of course an increased risk of identity theft or fraud when you personal data is accessible online.
BEST BET: ALWAYS PRINT THE TRANSACTION RECIEPT NAD KEEP IT WITH YOU BANK RECORDS UNTIL IT SHOWS ON YOUR PERSONAL SITES OR YOR BANK STATEMENT.
Advantages and disavanatges for the bank
online banking can benefit with less staft and now building charges, however, they would need to invest heavily in the way their security is manged on the website. on of such online banking is EGG, it is based in the uk and was launched in 1998 and has now become one of the world online bank.
I personally do not use online banking. neither do any of my families. maybe due to security resons. But i am looking forward in using online banking when am older.
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