Online Banking Pros and Cons for Internet Banking Users

A big plus for the banking customers is Online Banking providing them the ability to manage their financial transactions at the comfort of their home, and One can carry out their banking transactions using a computer, desktop or a mobile devise by downloading a mobile app.

Online Banking

Therefore, one can do the transaction at any time of the day based on time availability. Almost all the banks in India like banking giant State Bank of India provide SBI Net Banking, using the facility is very easy and one can easily become comfortable in using the facility after one or two transactions.

There are various banking facilities that can be done online using the online banking facility. Let us look at some of the facilities that an account holder can perform through online banking

  1. Open Accounts: An individual can open an account such a fixed deposit, recurring deposit or any other account by using the online banking facility. Earlier this used to take a lot of time and the individual had to personally visit the bank, stand in queues and explain his requirement to a personal banker.
  2. Pay Bills: Paying bills for the utilities has become very easy, one can simply register their utilities on the bank site and bank will electronically pay the bills for you automatically. Thus there is no need for reminder as well standing in queues to pay those bills personally.
  3. Transfer Funds: One of the most used facility by the users is the transfer of the money. One can thus easily transfer the money sitting at home to the same bank user or a customer of other bank. One just needs to add the beneficiary by receiving an OTP and a confirmation through the registered mobile number, where the transfer of funds can be done through NEFT (transfer of funds in 3-4 hrs) or IMPS (instant transfer).
  4. Apply for loans: Now applying for loans is also very easy, one can apply for different kind of loans through the net banking facility without the requirement of going to the bank.
  5. Checking Statements: One can also check the facility of checking the statements for any time period through net banking facility, and One can just select the time period and see the transactions made during the time period through the account.

Pros of Internet Banking Facility

There are various pros and cons of using the net banking facility from the home. Let us look at the positives in using the net banking facility:

  1. Net banking facility provides the comfort of using the facility from home and provides the flexibility of using it at their own comfortable time.
  2. Internet banking facility has the transaction fee usually lesser than the physical transaction of money.
  3. Online Net banking facility saves a lot of time for certain facilities like opening a new account etc. Usually a customer has to stand in long queues and wait for their number which is not the case with net banking.

Cons of Online Banking

There are lot of benefits of net banking facility, however the benefit of a physical banks cannot be overlooked. Let us look at the cons of net banking facility:

  1. In person services: There are certain services such as notary service, safety deposit etc. for which the account holder needs to visit the bank and cannot be done through net banking.
  2. Technology Issues: Although using the net banking facility is quite easy, however it does require the comfortability of the person to use the computer and mobile apps. A person who is not accustomed to use technology would find difficulty in using online banking services.
  3. Security: Generally, the net banking facility is very safe to use. However it also depends on the kind of passwords a person use. People should not keep passwords which are easy to guess. There are certain guidelines that a person should use for a safer online banking experience such as changing the passwords at regular intervals, keeping the password with desired complexity, one should also not share the passwords with any other person and share write the password anywhere.

Thus, net banking is a big revolution and a boon for the account holder, but it is important that the customer follows all the safety guidelines issued by bank for online banking.

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