Online Banking is a term we hear on a daily basis, and it is very likely you have heard or even used it at least once if not more.
Different people know it with different names such as internet banking, virtual banking, home banking, cyberbanking, web banking, e-banking etc.
This type of banking is very likely to take over the traditional banking process in the nearest future.
Well, this post is about the advantages and disadvantages of online banking.
In case you are wondering what online banking is, you will also discover that in the course of this article.
Table of Contents
What Is Online Banking?
Online banking is a form of banking done online, or over the internet.
It simply means you can access your bank account from any location and carrying out transactions via the web using a smartphone, tablet or PC.
You no longer need to visit any physical office to carry conduct financial transactions such as money transfers, payment of bills etc.
This type of banking offers its services remotely via telephones and emails, and it is usually fast, and free.
Since the invention and commercialization of the internet came online banks that have no branch offices anywhere.
And as financial technology progressed, virtually all traditional banks started offering their services online, this goes to show that virtual banking has come to stay.
If this is the situation, then there is a need for us to explore what this new banking system has for us.
Advantages and Disadvantages of Virtual Banking
Virtual banking offers all the services available in traditional banking, starting from a cash deposit, to funds withdrawal, money transfer, bill payment, account opening, check deposits etc.
Virtual banking actually has a lot of advantages over the traditional banking method, but that does not mean it is free of failures.
Advantages of Online Banking
Most of the advantages of cyber or virtual banking have to do with the fact they are simply done online, while others are as a result of the competitive advantages offered by online banks taking advantage of their cost structure.
Some of the amazing benefits of online banking include are listed below;
- Their services and account are always available 24/7.
- Environmentally friendly with better-advanced technology.
- They provide Fast, Quick, and efficient Transactions.
- They provide convenient mobility and Online bill payment
- They have low overhead which translates to can low mortgage, and high interest rate.
- They offer free checking etc.
Disadvantages of Online Banking
There is a common saying that everything that has an advantage also has a disadvantage. Could this be true in this case?
Follow me as we carry out this discovery together.
- High-Security Threats
- Slower deposits, and Low Relationships between bank staff and customers due to lack of physical branches.
- Website downtime and outages due to routine maintenance and unplanned occurrences.
I have listed a few of the advantages and disadvantages of online banking.
Personally, I will say that internet banking though with some disadvantages is still good and my prefered choice due to some factors.
However, before making your choice of a financial institution, it is very important you take into consideration some factors, such as your knowledge level or understanding of the internet and mobile banking technology
If you are not very conversant with the factors mentioned in the above paragraph, I will advise you to go for another form of banking that you are comfortable with.