Online Banking – Definition, Features, Advantages And Disadvantages

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You have been hearing online banking and might not know what it is, here you all learn about online banking advantages, benefits and disadvantages.

Online banking is one of the fastest method of banking in this modern world and anyone who isn’t making use of internet banking is not yet there.

Online banking, also known as internet banking, e-banking or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website. The internet banking system will typically connect to or be part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers accessed banking services.

Here in Nigeria, all the banks have adopted this method of banking which is safe and easy to use. To access a financial institution’s online banking facility, a customer with internet access will need to register with the institution for the service, and set up a password and other credentials for customer verification.

The credentials for e-banking is normally not the same as for mobile banking. Financial institutions now routinely allocate customers numbers, whether or not customers have indicated an intention to access their online banking facility. Customer numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number.

Features And Benefits of Online Banking/ Internet Banking

Internet banking comes with lots of great features and benefits which you and i will benefit from it. The features and benefits are listed below.

Online banking features, advantages and disadvantages

  • Online banking is a real definition of easy banking. You can perform banking transactions at any given time or a place.
  • You can transfer money from your bank to any other bank within or outside the country.
  • You can pay bills through online or internet banking.
  • Check your account balances, review activity, and access account history.
  • Buy airtime or internet data from your bank account.
  • Report a lost or stolen debit/credit card via Internet Banking and it’s suspended/cancelled on the spot.
  • 24 hour, 7 day1 banking convenience
  • Save time and minimise banking fees
  • Convenient, fast and paper-free eStatements
  • Receive SMS and Email Alerts3
  • Bank how you want – PC, tablet or mobile

Advantages of Online Banking/ Internet Banking

  1. Easy, faster and convenient
  2. Available 24/7
  3. Save stress of going to the bank hall.
  4. You will have your bank account on your fingertips.

Disadvantages of Online Banking

One major disadvantage of internet banking is that you might experience network breakdown. If such occurs, you can’t do anything until the network gets back.

So that’s it on online banking, features, benefits, advantages and disadvantages.

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