Internet banking (also called virtual banking, e-banking, net banking or online banking) is a banking system that allows us to conduct financial activities such as utility payment, fund transfer, mobile recharge, buying insurance etc. It is simple and convenience system allows clients to perform banking activities without visiting the bank. In this post we are going to discuss some major pros and cons of online banking.
Advantages Of Internet Banking
The main advantages of online banking are as follows:
1. Convenience
One of the major advantages of internet banking is that it is convenience to perform transactions. Anyone can make banking transactions from any location without visiting a bank.
2. Easier Process
It makes easy to conduct financial transactions such as fund transfer, utility payment, bill payment etc. very quickly and easily with few clicks. Customers can check their balance, open account, order check book and passbook through online banking. Therefore, it is simple and easier.
3. 24 x 7 Available
Internet banking is more flexible and accessible than traditional banking because it is available 24 x 7 (even on the public holiday also). It is useful for people living in remote areas because it can be accessed fro anywhere at anytime.
4. Time Saving
As we know that it is convenient and quick system of conducting financial activities, it saves time and effort.
5. Easy To Monitor
Users can monitor their banking activities because it provides real time data.
6. Attract New Customers
Banks providing online banking facility can attract more customers. It helps to increase their business as well as reputation also.
Disadvantages Of Internet Banking
The main disadvantages of internet banking can be described as follows:
1. Not Suitable For All
Online banking requires internet connection and some skills to operate computer or mobile. So, it is not suitable for people living in remote areas where there is no reliable internet service. It is also unsuitable for illiterate people because they cannot conduct banking transactions by using mobile phones or laptops.
2. Unreliable
Users may face several technical issues while using internet banking. Logging in problem, transaction fail errors, slow web page loading etc. may create problem to the users.
3. Possibility Of Frauds
Internet banking involves high risk of frauds and scams. Therefore, both banks and clients should ensure proper security measures to make it safe.
4. Limited Services
Internet banking provides limited services than traditional banking system. Clients require to visit banks for cash deposit, large withdrawals, apply for loan etc. So it has limited scope.
5. No Personal Relation
It lacks interaction between customers and banks. Mostly clients receive automated response that may create frustration. Therefore, it fails to provide sufficient services to the consumers.
6. Huge Investment Required
It requires huge investment to operate online banking system. It requires effective training and development program for employees and more marketing and advertising costs to promote this system.
Pros And Cons Of Internet Banking In Brief
Pros
* It is time and cost efficient system
* It is available round the clock
* It ensures real time tracking
* It is easy to monitor
* It provides varieties of services
Cons
* It requires huge investment
* It is less flexible and accessible
* It it not suitable for all people
* It is unreliable than traditional banking
* There is a possibility of frauds, scams, hacking etc.
