What is internet banking? Learn the advantages and disadvantages of online banking

There is no time to go to the bank and enjoy the services provided by the bank. The present age is the age of internet banking. In this post you will learn about what is internet banking, features of net banking, advantages and disadvantages of internet banking.

What is internet banking?

Internet banking is a facility provided by banks and financial institutions through which customers can avail banking services through internet. Internet banking is also known as net banking, online banking, e-banking, etc. In other words, the convenience of using various services of the bank from anywhere through internet without going to the branch of the bank is called internet banking.

However, not all account holders of a bank can use internet banking by default. To use internet banking services, you have to register with the bank at the time of opening the account or after opening the account. To login to internet banking account you need to use customer ID and password. 

Features of online banking

• Checking account statements
• Opened a fixed deposit account
• Provide utility bills like water bills, electricity bills, etc.
• Make merchant payments
• Transfer funds
• Order for check book
• Buying general insurance
• Prepaid mobile recharge

Advantages of Internet Banking

• Availability: The services of the bank can be availed at any time of the year without any problem. Due to the uninterrupted service of the bank over time, everything from checking the account balance to transferring funds can be done without waiting for the bank to open.

• Easy to operate: Services are quite easy to use in general through online banking. Many people find it easier to transact online than to visit a bank branch.

• Reduces work: You don't have to leave your work and go to the bank branch and stand in line to receive the services of the bank. It is possible to transact from any place. Almost all banking services including utility bills, deposit account installments are easily available

• Time saving: Any type of transaction can be done in a few minutes through internet banking. Transferring funds to another account or opening a fixed deposit account in any part of the world in a very short time.

• Activity Tracking: A receipt is issued as proof of transaction from a branch of the bank, which is not impossible to lose. Accounts of all the transactions made in the bank are stored in the internet banking portal. In case of online banking, proof of transaction can be shown if required for any reason. Recipient's name, bank account number, amount of money, date and time etc. are recorded in the case of online banking.

Disadvantages of internet banking

• Internet Dependence: Uninterrupted internet connection is required to use internet banking services without any problem. It is not possible to use any service provided online without internet. Again due to some technical glitches between the banks the server may be down which may result in inability to use internet banking services.

• Security: No matter how many steps a bank takes to build a secure network, it is not surprising that hackers are increasingly involved in online banking transactions. No matter what type of advanced encryption method is used, transaction information is constantly compromised. Unscrupulous individuals can benefit by misusing important information

• Difficult for newcomers: Despite the proliferation of internet in our country, many users are not familiar with the internet outside of known websites. As a result, how internet banking works can be a very complicated process for the common man

All Internet Banking Accounts require a password to access any service. This password confirms the security of the account. If someone else knows this password, then it is very easy to carry out various dishonest activities. Again this password has to be set according to the rules given by the bank. It may be wise to change your password regularly to avoid any untoward incidents due to password theft.

Examples of internet banking

Numerous banks in Bangladesh offer online banking or internet banking facilities. Let's take a brief look at the online banking services of a few banks.

• Dutch Bangla Bank: Dutch Bangla Bank has started providing the first fully automated banking service in the country. In addition to internet banking, DBBL has a significant number of ATMs in the country
• Standard Chartered Bank: One of the international banks in the country, Standard Chartered Bank has launched their internet banking app, SC Internet Bangladesh. This app is very simple and easy to access all types of banking services
• Citibank: Citibank is one of the oldest private commercial banks in Bangladesh. The bank has further integrated their customers with the banking services by adding online banking services. Many customers are re-using their account regularly only for the tremendous benefits of Citibank Internet Banking
• EBL: Another trending bank in the country, EBL has been providing internet banking services to improve the quality of their services. EBL's mobile banking services can be easily accessed from devices with internet connection

What is your opinion about internet banking? Do you use online banking services? Let us know in the comments section.