Pros and Cons Of Internet Banking

It is fair to say that internet banking has truly changed the way we do business online. The convenience of transferring money and making payments online surpass the benefits of brick and mortar branches. In fact, almost every major bank in the country is investing heavily in developing its online infrastructure as a way to attract new customers and make their services more accessible. With that in mind, let’s take a look at the pros and cons of internet banking.

The pros of internet banking far outweigh the multiple cons but as a savvy financial consumer, it pays well to be aware of both sides.

 

Pros

 

 

Accessibility:

As we mentioned earlier, you cannot beat the convenience of having banking services 24 x 7, 365 at your fingertips as long as you have an internet connection. You don’t have to wait for the bank to open its doors for you to perform your business. You can check your balance anytime, with a few simple clicks. You no longer need to visit the bank regularly, thus leading you to save time.

 

 

Mobile Friendliness:

Internet banking has given rise to a whole new subset - mobile banking. With smartphones becoming increasingly advanced, it has become possible to access a whole range of banking services on the go. Your entire financial world can now fit within your palm. You can pay your utility bills, make payments, and transfer funds easily, irrespective of where you are in the world.

 

 

Additional Features: 

With e-banking, you get access to various additional tools like loan EMI calculator, interest calculator, investment analysis, et cetera. Using these tools, you can plan your financials with ease, in stark contrast to visiting your bank and discussing the same with a customer executive.

 

 

It Makes Life Easy: 

Many banks allow you to apply for loans, fixed deposits, and other similar services directly through your internet banking account, rather than going to the nearest branch, filling in the form and attaching all the documents. Since you have already furnished your details at the time of opening your account, the bank has the necessary data and you can apply for these services in a matter of minutes. Plus, you save paper!

 

 

Get Better Interest Rates, Lower Fees: 

The costs of running net banking operations aren’t as high as running a traditional brick and mortar bank. This may lead to the bank offering attractive rates of interest on loans and fixed deposits. Of course, it is up to the bank to decide who they want to offer such services, but having a good credit score will go a long way.

 

 

It is Fast and Efficient: 

You can not only access and manage all of your accounts from one place, but you can also observe your balances, loan liabilities, et cetera, from a single secure site. Add this to the fact that net banking is much more faster than your traditional banks and you have got yourself a perfect financial buddy!

 

 

Cons

 

 

It has a Steep Learning Curve:

If you are internet savvy, then learning how to use your net banking account will not take any time. But if you are just getting started, then you may find yourself on a steep learning curve. There are passwords to set, features to use, and navigating them may be a bit tricky. Luckily, these online banks do offer tutorials and guides to their new customers!

 

 

Security Concerns: 

This is a major drawback for internet banking. Banks are constantly required to upgrade their security software and firewalls to keep hackers at bay. With money practically stored ‘online,’ they are prone to thefts and malicious attacks.

 

 

Making Impulse Buys:

Having your funds accessible to you online may often lead you to make impulse purchases over the internet that you would not otherwise make. Therefore, it is important to keep track of your spending habits.

 

 

Limited Services, Personal Relationships:

There are a few services that you cannot access through your net banking account and for them, you need to visit your branch in person.

 

Internet banking is a very common feature of today’s banks. It is a helpful solution to track your finances easily and keep them on track. To make the most of it, it is recommended that you get in business with a bank that understands your requirements. Moreover, be sure to set a strong password to mitigate the risk of getting hacked.

Read more about do's & don'ts of how to use ATM card

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