With technological advancements, we have seen revolutions in various sectors, the banking sector is no exception. The impact of technology in banking is something we all should be aware of. In order to stay ahead of the competition, more and more banks began exploring internet banking. And today, here we are with a bunch of online banking services. The advanced financial technology made it possible for us to just use our devices and in no time connect to our bank, using banking services like before.
But this time, with more convenience. All these sound so good to be true, yet it is a reality, but it comes with drawbacks. In our discussion, we will look at the advantages and disadvantages of internet banking.
6 Advantages of Internet Banking
The best part about internet banking is that you can be anywhere and still access banking services anytime with a device and internet connection. With this, let’s discuss the benefits of internet banking.
Opening a bank account online is quite simpler compared to the traditional way of visiting the branch. In online mode, you already know what all documents are required, and you can be prepared in advance. Then, it would take a few minutes to verify the documents, and with some simple procedures, you can own an account. But, with traditional mode, you’ll have to contact the bank before visiting to know the required documents. And, only once visiting the branch, you know the exact procedure of account opening. Furthermore, you can more easily use the banking services online compared to visiting the branch.
2. 24/7 Availability
Do you want to make transactions round the clock? Internet banking got you covered with its 24×7 availability. Gone are the days, when waited for the bank to open. And, when it was the holiday times, the waiting timeline just kept increasing. Finally, when the bank was open, you were greeted by a huge crowd, making your banking experience difficult. But now, you can simply check your balance, transfer funds, or track the status of services using the applications or websites in a couple of seconds, irrespective of date and time.
3. Quick and efficient
Considering that you don’t have to visit the bank for internet banking, it comes naturally that it is much quicker. It is a very efficient way of transferring funds. Suppose you want to purchase products or services, you don’t have to visit the bank and deposit money to the merchant’s account. You can simply use internet banking for transactions, and the product or services will be made available to you. Additionally, services like booking a fixed deposit or applying for a loan can be done from the comfort of your home. All these are made possible by the modern technologies in banking.
4. Easy tracking
Every time, you wanted to track your transaction, you had to visit the bank to print the passbook. It was a very time-consuming task, especially when there was a long queue. Gladly, now we have mobile applications that allow you to check your statement conveniently on your device. Ever feel like going through transactions before making financial decisions? Simply use internet banking, explore your options, and make wise decisions.
5. Bill payment
We all got responsibilities, bill payment is one such responsibility that we can’t ignore. But, sometimes, our busy lives make it difficult for us to keep track of the bills. Even if you are reaching the due date of these bills, you can still count on internet banking for completing the pending payments. Now, we can skip those lengthy procedures of writing checks or filling forms, and simply switch to internet banking for managing bill payments.
6. More control
No matter what type of bank account you use, internet banking provides you more control over the transactions. If you visit your local bank and ask them to transfer some amounts to another account, all you have to do is sit back there and wait for the bank employee to let you know the transfer is completed. You don’t know what happened there, if there were any mistakes, or anything else. When you use an internet banking service instead, everything is in front of your eyes.
6 Disadvantages of Internet Banking
We discussed the perks offered by internet banking. So, let’s move on to the other side, and look at its drawbacks. These are the disadvantages of internet banking –
1. Internet and technology dependent
We cannot start our discussion of the disadvantages of internet banking without highlighting its dependence on technology. All those immense benefits are at your fingertips only when you have a device with an internet connection. So, if you don’t have an internet connection, forget about using those banking services. Also, you must have little technical knowledge to understand how internet banking works. Even though most of the bank provides a demo on how to use banking services online, there are still some banks that don’t, making internet banking experience difficult.
2. Security issues
Since most of the sectors are going digital, including the banking sector, hackers are using this opportunity to steal valuable information. To protect the sensitive data of the users, the banks are using advanced encryption methods. But, despite this, we hear about security incidents. There are people on the internet who hacks the sensitive information of the users and gain unauthorized access, eventually leading to loss of assets.
3. Server issues
This is one of the drawbacks of internet banking that shouldn’t be neglected. Suppose you have an internet connection, but if the server of the bank is down, no matter how hard you try, you still won’t be able to access your account. No doubt, internet banking facility is available round the clock, but for various purposes including maintenance, the bank servers are down, making it impossible to use the banking services in that duration.
4. Constant annoying updates
If you are already using internet banking, you can relate to how annoying it can be to receive constant emails and SMS from banks. It just gets difficult to go through each of these emails and SMS and select which ones should be kept and which ones to delete. And, most of these emails and SMS are targeted towards selling banking products and services, such as credit cards. Things get worse when you start receiving calls from them multiple times a day.
5. Difficulty in depositing
At least with a traditional banking system, you can visit the branch with checks or cash to deposit. But the whole experience gets a bit difficult when it comes to internet banking. Here, you’ll have to take the help of other accounts or banks to transfer the amount to your account.
6. Limited set of services
Internet banking doesn’t allow every banking operations need. There are still some limitations to certain operations. You can only perform those operations by visiting a local branch. This is for security and privacy reasons. For example, if you want to transfer a huge amount, you might face difficulties doing that by yourself online. This is a security measure put by most of the banks in order to avoid any fraudulent activities on your bank accounts.