Technology has brought about many drastic changes in many industries, and banking is no exception. Thanks to technological innovations, many of the top banking institutions, reviewed by sites like Creditonline.bg, provide online banking services to their customers.
Advantages of online banking
Here are the advantages of online banking.
It Is Convenient
This is one of the main advantages of mobile banking. This option allows individuals to do their banking transactions from anywhere, anytime. Be it transferring funds from one bank account to another, paying bills, or depositing checks.
This level of convenience has enabled people to take care of emergencies from their location. This has also seen individuals save time as they don’t have to go to the bank and wait in line to conduct their transactions.
It Is Accurate and Secure
Online banking tends to be more accurate and secure than traditional banking. When it comes to accuracy, online banking platforms automatically record every transaction an individual makes, so it’s easy for the bank or the account to find those records when needed.
In terms of security, many mobile banking websites have implemented several security measures to prevent hackers from accessing their customers’ confidential information.
Some online banking platforms use Secure Sockets Layer (SSL) encryption on their websites to prevent any third party from accessing information shared between the bank and customer.
Many online banking websites also use the 2-factor authentication protection, requiring customers to go through a 2-step verification process to access their bank accounts.
It Is Affordable
Mobile banking transaction fees tend to be lower than that of traditional banking. This is mainly because online banking doesn’t need any bank teller to help individuals conduct their transactions.
Customized Features
Many online banking platforms have developed personalized features like transaction calculators, saving tools, and spending graphs, to name a few. These features help individuals stay in control of their finances more easily.
For starters, it helps people analyze their spending and determine where they should make adjustments. Saving tools help individuals easily transfer money they intend to save into their bank accounts.
It Has Enabled People to Stay In Control of Their Finances
The opportunity for individuals to self-serve themselves on online banking websites has enabled them to be in more control of their finances. People can easily make transactions by themselves, save easily, track their spending, and more!
It Has Enabled Individuals to Open Multiple Bank Accounts
This especially applies to savings accounts. With mobile banking, people can save for different purposes on multiple accounts. For instance, if an individual wants to save money to purchase a house and a car, they can easily open two bank accounts to save separately.
It Has Enhanced People’s Financial Literacy
Mobile banking has to some extent, improved people’s financial literacy. With all the features like budgeting tools, saving tools, and spending graphs, individuals better understand how to control their finances.
Disadvantages of Online Banking
One Needs to Have Access to an Internet Connection
The main disadvantage of internet banking is that individuals have to have access to a stable internet connection to be able to bank online. This may be a disadvantage if an individual is at a location with no internet but still wants access to their funds.
Prone to Hackers
While many internet banking platforms have put top-notch quality safety measures in place, it doesn’t mean that individuals aren’t at risk of being victims of hacking.
That is why people should follow the necessary security measures such as creating strong passwords, keeping their online banking details a secret, and logging out of their online bank accounts.
Technological Interruptions
Like any other online activity, internet banking is at the mercy of a particular system’s efficiency and stability. So, if a certain online banking website’s system experiences a mishap, no one can conduct their transactions, which is quite inconvenient.
An Individual’s Banking Queries May Not Be Solved Immediately
Unlike traditional banking, a person’s queries and complaints may not be attended to quickly when it comes to internet banking.
With physical banking, an individual can walk up to a bank teller and have their issues solved. However, internet banking may require individuals to contact the customer service team, which may not be available at the time.
Conclusion
Online banking has allowed people to conduct their transactions easily from the comfort of their locations. However, it also has its fair share of downsides.
