Online Banking 101

By BankBazaar | September 29, 2018

Internet banking has made life simpler for millions and millions of people around the world. Here’s everything you need to know about net banking.

Online Banking 101

Technology has touched every aspect of our lives. Right from the moment we wake up, to the moment we go back to bed at night, technology surrounds us. It offers us a solution for almost everything from shopping for groceries to finding a plumber.

Banking is definitely not a stranger to technology. Internet banking has made life simpler for millions and millions of people around the world. Especially in India, where a bank visit implies waiting in never-ending queues, online banking is definitely a blessing. Online banking has made it possible for customers to do simple tasks like accessing their Savings Account anytime, keeping track of their account balance, getting e-statements, paying bills online, shopping online, transferring funds and much more in under a few clicks and within a matter of minutes.

Pro tip: Try the BankBazaar mobile app to manage your finances better!

What Is Online Banking?

Online banking, also known as net banking or e-banking, is the facility provided by banks and financial institutions that allows customers to use banking services via the internet. It has made scores of services available to customers like online money transfer, account opening, bill payment, tracking account activity etc.

Online banking also allows banks to advertise their products and services in a manner that it reaches out to millions of their customers. However, in order to use online banking, an individual needs access to the internet. Mobile phones which have a 3G/4G data connection can also help you access internet banking. Also, most banks have created their own apps that can be downloaded on the phone and used anytime.

Additional Reading: How To Check Bank Balance Without Internet On Phone

Scope Of Online Banking Services

Customers can avail several indispensable services with the help of online banking. They don’t even have to personally visit the bank. Customers can perform financial transactions like transfer funds online, pay bills, apply for loans and open a Savings Account, among various other Debit Card transactions. Under non-financial transactions, customers can carry out several activities which may require going to the bank like applying for a new cheque-book, getting account statements, updating contact information, starting/stopping payments, etc.

Advantages Of Net Banking

In an era when all of us are heavily dependent on technology, internet banking is nothing short of a saviour. There are several advantages which e-banking has over conventional banking which requires one to visit the bank and stand in queues. Listed below are some of the benefits of internet banking which make our life easier each day.

Easy To Operate 

Online banking is very simple and easy to understand, maybe easier than conventional banking in many cases. Operation of an online account is rather simple and easy to use.

Convenience Of Making Payments

Internet banking makes it quite convenient to carry out transactional activities like transfer of funds, payment of bills, etc. This means you no longer have to wait in queues for bill payments or keep the receipts of your bill payments safely. Your account stores data regarding your bills and online payments.

Another indisputable advantage of online banking is that it is available round the clock, throughout the year. You don’t have to schedule a time when you can carry out banking activities, regardless of it being a weekend or a holiday.

Time-Saving And Efficient

E-banking in not only fast but also highly efficient in letting you carry out transactions within a few minutes. Transfer of funds, account opening, bill payments take no more than a few minutes to process, which helps save a lot of time.

Account Activity Tracking

Another very important benefit provided by net banking is that it allows you to track your account activity at all times. You can keep an eye on your account transactions and balance at all times. Any unauthorised transaction or discrepancy can be immediately tracked and reported to the bank, allowing you to keep your money safe at all times.

Additional Reading: Mobile Banking 101

Disadvantages Of Net Banking

Online banking is accompanied by a fair set of advantages, but like everything else, it also comes with certain disadvantages. Some of the things to look out for in case of net banking are as follows:

Beginners May Take Time To Get Used To It

For those who are new to the world of banking, online banking may pose a slight challenge in terms of usage. While some banks do provide demos on their websites regarding the use of online banking, there are many banks which don’t do that. In the latter case, an inexperienced user may be left to fend for him/herself.

No Online Banking Without Internet Access

In order to use online banking, one needs to have a stable internet connection or access. Without one, the facility of online banking is of no use. Also, if the bank servers are down, you will be unable to access your account online to carry out transactions.

Transaction Security

One of the main reasons which still keeps a lot of customers from using internet banking is the safety of transactions. In some cases, a security breach has occurred in spite of a powerful encryption system being in place. Though it is uncommon, it can pose a major threat.

Securing Your Password

When it comes to internet banking, account passwords are of crucial importance. For that reason, it is absolutely necessary that a user must never reveal their account password to anyone. Memorise your passwords and keep changing the same frequently to eliminate any chance of password theft.

Need more on financial management? Everything you need is just a click away.

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