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Online Banking – Definition, Features, Advantages And Disadvantages

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You have been hearing about online banking which you might be using it or not, didn’t really understand what it is all about like it’s definition, features, advantages and disadvantages.

Online banking definition, features, advantages and disadvantages

In this post, i will educate you on online banking, why it was introduced, it’s purpose and the reason why it is necessary to open or create it for your savings account, current account or joint account.

Definition

This is the very first question one will ask “what is online banking”. This is a type of banking by which a person or a bank account holder execute financial transactions via the internet.
According to Wikipedia, it can be called an e-banking which is an 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.
Bet you with this definition you have understood what is the meaning of online banking or internet banking which requires data connection to perform any transaction.

Purpose

One purpose of is to allow people to keep track of their finances as well as make transactions from the comfort of their home. Just imagine performing transaction from your home, sending money to anyone from your home or paying your bills at any given hour from your home or any other place.

Features

The common features of online banking are listed below
1. Viewing account balances
2  Viewing recent transactions
3. Downloading bank statements, for example in PDF format
4. Viewing images of paid cheques
5. Ordering cheque books
6. Paying third parties, including bill payments and third party fund transfers.

Advantages of Online Banking

1. Access anywhere
2. Less time consuming
3. Helps to transfer the money immediately and accurately
4. Saves Time for the account holder.
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5. Permanent access to the bank
6. It is available 24/7. There are places in this world that you can’t access the bank at any time, but with online banking it is available at any you want to perform your transaction.

Disadvantages of Online Banking

1. It requires internet connection to work, if you don’t have internet connection with data bundle in it or a working WiFi, it won’t work.
2. Another huge disadvantage is server problem. If your bank server is down or too poor or overloaded, it might be difficult to access it.
3. Many a times, you won’t know if your transaction is a successful one or not, and will require the person to call whom he or she is transacting with.

Enrollment

1. If you want to enroll for online banking or internet banking today, the first thing to do is to go to your bank.
2. Meet with the customer service and tell them you want to enroll for online banking or internet banking.
3. You will be giving a form to fill, it will require your account number with the bank and other details to fill in( depends on your bank and country).
4. Afterwards you should submit the form to the customer service and they will go through it and do other necessary things.
5. You will be given another paper which contains your Internet banking details like the username and password.
6. You will have to change the password immediately or within 2hrs if not you will start afresh.
That’s is it for online banking, features, advantages and disadvantages and how to enroll for internet banking 

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