Online Banking

Online Banking

Introduction

Online banking has become popular today. A study shows that, in the last two years, 76% of US households are having internet access make banking transactions over the internet in two years. The way people perform bank transactions has changed completely over the past thirty years. In the past, they had to visit the bank during working hours and stand in a line for some minutes to withdraw money. Automatic Teller Machines launched by banks has relieved people from the trouble of visiting the local branch to take money. Though online commerce exploded in the late 1990s itself, internet banking appeared on the screen in 2000 only. Now, all the major banks in the US offer internet banking. Online banking offers people an efficient way to manage their bank accounts. However, there are some drawbacks related to online banking, which affects people's, banking transactions. Though, it depends on the user in the way they can tackle these problems by employing appropriate strategies. Therefore, all issues related to online banking will be discussed in detail.

Discussion

Pros 1: The customer can quickly initiate transactions online such as a transfer, withdrawal request or a bill payment in a matter of minutes. It helps people in saving their precious time and enjoys great convenience. They can view their bank statements and check the balances conveniently online. Online banking relieves the customer from the trouble of wasting their precious time in standing in long queues to get their work done. Many banks offering internet banking service provide current account mortgages, which let them tradeoff between the balance in the savings account or current account and the personal borrowings. If the customers own a small business, the features offered by internet banking can help them get more benefits. Business relies on fast and effective access to banking information for cash flow management, auditing and financial transaction processing. Internet banking allows customers to access deposits, cleared checks and other transactions easily, which ensure to carry out their business process smoothly. The customers can find out any errors and delays quickly and resolve them before they make any impact on their business. Automation of payments offered by internet banking allows the customer to make payments promptly and reduce errors. These transactions clearly indicate the bright future for online banking transactions (Chaum, 1992, 101).

Cons 1: The limited access cannot just drop off the deposit like would at a local bank. There are some of the drawbacks that are traditionally associated with online banking transactions. The customer cannot deposit the money online in the bank and has to physically visit the local bank. Sometimes, this factor becomes a hassle for most of the people especially employed persons. They find it hard in depositing the money in the bank account. This is due to the limited time and their busy schedule. The online transactions can be performed by employees in their office by using the internet or their own workstation computer. However, in this category, they find it hard to ...