Online Banking: Advantages and Disadvantages

With the increasing popularity of the internet, more and more industries are seeking ways to utilize this popular medium in an effort to keep up with the changing technological preferences of their customers. These days you can do just about anything online from grocery shopping to making a free phone call to a friend in Tokyo by your PC. The possibilities of the internet are seemingly endless and the banking industry has decided that it will not be left behind. While most people have at the minimum heard of online banking, the majority of them have probably not tried it however. Maybe it’s because we find more comfort in working with real people and real paper when it comes to money matters instead of performing transactions in the seemingly impersonal universe of the World Wide Web. in any case the case may be, there are both advantages and disadvantages to online banking. This article will outline these advantages and disadvantages so you can either feel justified in your fears or see online banking as a safe way to quickly and efficiently manage your finances.

Let’s begin with the advantages of online banking.

First, online banking is functional. It allows you to perform transactions, pay bills and check balances 24 hours a day, 7 days a week. The bank virtually never closes because it is as easy to reach as your PC or laptop computer. No matter where you are in the country or in the world, you can visit your online bank and manager money matters. You can already schedule to pay several payees ahead of time instead of keeping up with paper bills or trying to remember when to visit a payee’s web site to make an online payment. Your bank will automatically send the payments on your behalf in the amounts and on the dates you specify.

Second, online banking is fast, efficient and effective. by the internet, transactions are typically performed and executed at a faster rate than ATM’s. In addition, online edges give you the ability to manager several bank accounts (checking, savings, CDs, IRAs, etc.) from one site. The majority of banking sites are also compatible with programs like Quicken and Microsoft Money, so as to allow for more effective management of assets.

Just as with anything else, there are disadvantages to online banking.

The main issue for most people is that of trust. They may surprise if their transaction went by successfully or if they clicked on the correct button. The best way to conquer this uneasiness is to make a habit of printing the transaction receipt. Keep this receipt until your bank statement or online account view proves that you have successfully executed the transaction.

Online banking sites can also take a while to start up and can be difficult to learn at first. Some edges require customers to provide some form of photo identification in addition to signing a form at one of their branches. Spouses may also have to sign a strength of attorney if you both plan to access and manager your accounts together online. In addition to all of this, it may take a while to learn how to use your banking site. Most if not all edges will offer an online banking tutorial. Some already offer live customer sustain for online banking via chat, email, or phone.

Clearly, online banking has both advantages and disadvantages. It simplifies life for some people and for them it is frankly a better way to bank. For others it may be a little more complicate and downright intimidating. In light of these two perceptions, more and more edges are offering online banking as a viable option for their customers.

Leave a Reply