Banking has become one of the essential tools in everyday life. The provision of banking services has made all activities more comfortable and accessible, and this transcends just financial activities. There is hardly a thing or event done today, that banking services would not be useful in.
Over the years, much like anything else, banks and the services they provide have evolved. The traditional process of banking that used to be strictly physical, and no doubt sometimes tedious, has seen an upturn.
Nowadays, thanks to this evolution, you could sit from the comfort of your home and do many of the things you would have previously needed to do at the bank. One aspect of the evolution of banking services is internet banking, and this article discusses what internet banking is and how it works.
What is internet banking?
Internet banking, which is also known as online banking or web banking, is an electronic financial system. It is a financial tool that allows the customers of a bank to carry out commercial activities through the use of the internet and the bank’s website.
It extends a bank and the services it provides, and so we can consider it a branch of the bank, only that it is not physical. Through this virtual branch of the bank, a customer can do everything with the use of the internet. You could receive money, pay for transactions, take out a loan, et cetera.
How does internet banking work?
With online banking, you do not have to be at the bank’s physical location to carry out a financial transaction, as you could do it anywhere you are as long as there is an internet connection and access to the bank’s website.
You can carry out your transactions at your convenience, whenever and wherever you want to, be it at work, home, school or whenever you are on the move.
As aforementioned, banking online requires a few things. These include an active internet connection, a computer/laptop or any device that is internet compatible, and your banking details.
However, you first need to have registered explicitly for your bank’s online banking services, which would give you access to the service.
Registering creates an account on the banking platform, which you alone have access to through a password. Once you log in and can input your account details, you have full access and can carry out whatever you seek to do financially.
What can you do with internet banking?
The services provided by online banking vary from bank to bank. Your access to financial services all depends on the range your bank offers.
Most banks give you access to the actions in internet banking, such as sending money, receiving it, making deposits, or paying for bills.
With some banks, you can also open a new account, apply for credit facilities, create standing orders, amongst many other activities. With some banks, you may even update your financial details or resolve any issues relating to your account.
Pros of Internet Banking
- It is extremely mobile, meaning you can take it wherever you choose
- It is convenient
- Environmentally friendly, requiring no natural resources
- Time-friendly, and you do not have to spend hours at a bank
- It is a better economic option because it has better interest rates
- It is secure, possessing multiple layers of security
Cons of Internet Banking
- It can easily be hacked as it not secure from all internet connections
- It can easily lose records as they are not tangible
- Access to your details is at risk
Internet banking has made everything banking so much easier. Financial activities have become more seamless and less tedious thanks to the emergence of internet banking platforms.