All You Should Know About Internet Banking
Are you looking for how to go about Internet Banking? You are on the right page. Keep reading.
Banking can be said to be a business activity of accepting and safeguarding money owned by other individuals and personnel’s, then, in turn, lending out this money in order to carry out economic activities such as making profits and taking care of operating costs.
The new type of service provided by the banks with the help of internet technology is known as Internet Banking, Online Banking, home banking, web banking, or E-Banking all are the same.
So therefore what is internet banking?
Internet Banking which is also known as online banking, home banking, web banking, can be characterized as an electronic payment platform or system that allows customers to conduct financial transactions over the Internet through a bank’s website or the financial institutions website.
Online banking allows you to access your account anytime, anyplace, and anywhere from your comfort zone with any internet-enabled device.
If you have an account with any bank, you can now access their internet banking platform and carry out all forms of banking transactions from the comfort of your home without having to spend time in the queue in the bank.
With this internet banking platform, you can now pay various bills such as NEPA or PHCN, DSTV/GOTV subscriptions, and also transfer of funds within and also outside the bank account you are a customer of.
Internet banking has greatly reduced bank’s operating cost by reducing the dependence on the branch network and offers significant convenience to customers, who do not need to come down to one of the bank’s branches to conduct any bank transaction.
Internet banking services are really convenient and comfortable for customers. It provides brilliant features such as viewing account balances, making payments, checking the history of your transactions, and obtaining statements. Banks also release their latest services over the internet.
I have been writing on the advantages of internet banking so far but we must also know that there are a few disadvantages to internet banking. Let’s see the advantages and disadvantages of banking on the internet.
Advantages and Disadvantages of Internet Banking
Advantages of Internet Banking
- Banking Online is very simple to open and easy to operate.
- It is comfortable to use because you can easily pay your bills and also transfer funds within and outside your account from anywhere in the world with a good internet coverage.
- The availability is not restricted, this means you can access it at anytime or anywhere, even when the bank is closed or during holidays, with internet banking you can perform any bank transaction.
- It is very fast and efficient. You can transact funds to any account very fast and also manage several accounts easily with internet banking.
- With web/online banking, you can track every transaction that goes on your account and get to know any fraudulent activity before it poses any threat to your account.
- It is a great platform for banks to advertise their products and services.
- You also have loans and investment options with the internet banking.
Disadvantages of Online Banking
- Understanding how to use internet banking might be difficult to start, but there are some sites that provide a demo and guidelines on how to access online accounts, we are also one of them.
- A huge disadvantage is poor network coverage. You cannot access internet banking if you don’t have a good internet connection.
- Security is a big issue. Your account information can be hacked by unauthorized people over the internet.
- Password security is a must. When you receive your password, memorize it so you don’t forget it. Otherwise, your account may be misused.
- If the bank’s server is down and not working then one cannot access his/her account over the internet.
Can I Open Bank Account Online?
Yes, you can.
Opening Accounts
You can open savings, checking, and other types of accounts online, without the difficulty of printing or physically signing anything. With the feature of electronic signature, the entire process could be less than 10 minutes.
For a customer of a financial institution that offers internet banking, you can register for online access via that institution’s website. To get started, you will need the following:
Here are the requirements needed to activate internet banking.
- An internet connection.
- A device (computer, tablet, or smartphone) with a web browser.
- Your bank account number.
- Your personal information to verify your identity, which includes your date of birth, mobile number, email address, ATM card detail, and social security number etc.
Note that in activating your bank internet banking, the steps and requirements differ from bank to bank.
Features of Internet Banking
Internet banking gives you convenient and easy online access to your account information and provides services that aid in efficient transactions. The features of online banking include:
- Paying of bills without writing checks.
- Transfer of funds between your accounts.
- Use of Bank-to-Bank transfer.
- Buy airtime with your account.
- Check transaction history.
- Lowers transaction cost.
Types of Online Banking
According to the United States Department of treasury, there are three main types of internet banking which are:
- Informational
- Communicative
- Transactional
Informational Internet Banking
This type does not really allow customers to view or maintain their accounts, nor does it allow communication between the financial institution and the customer.
Informational internet banking comprises the basic information’s that the bank provides about its products and services. This type of banking is strategically meant for marketing goals only.
Communicative Internet Banking
This allows for communication between the customer and the bank. But it should be known that it is limited to major interactions which include account inquiries, new account updates, and balances, contact information updates, loan or mortgage applications, and balances.
Transactional Internet Banking
This could be said to be the most popular internet banking type, this type of banking provides or offers all of the gains of a financial institution such as full control over your accounts deposits, transfers, updates, withdrawals, and online payments.
Is there any charges using Internet Banking?
Yes, there are little or no charges using your bank’s online banking service. This charge depends on your bank. And how much money that will be deducted from the account when using the bank’s internet banking service will vary depending on transaction volume.
This is to say that there is a different service charge that comes with you using your bank’s internet banking platform.
Nigerian Banks Internet Banking Activation Guide
Summary
As the name implies Internet banking is simply banking over the internet, it is much faster and much more convenient than having to go to the bank branch every time you want to do a transaction.
This article has been able to cover all you need to know about internet banking, from its features and types down to its advantages and also disadvantages.
Read carefully so you have a better understanding of internet banking. And please, don’t forget to share this if you find it helpful. Also drop your questions, and suggestions in the comment box below and you’ll get a fast reply.
