Online Banking Advantages and Disadvantages

With the technology around us, Internet and electronic payment systems, over the past few years we have seen a shift toward more financial institutions offering various services online. Most major banks are now offering some type of online portal where customers can check account activity and perform basic transactions.

Advantages

Online banking is more convenient. It helps you perform transactions, pay bills and check balances Round the clock, 24 hours a day, 7 days a week. The bank virtually never closes because it is as accessible as your PC or laptop computer. No matter where you are in the country or in the world, you can check your online bank and handle money matter. You can also schedule to pay several payees in advance rather than keeping up with paper bills or seeking to remember when to visit a payee’s web site to make an online payment.

Online banking is fast, efficient and effective. Through the internet, transactions are typically performed and executed at a faster rate than ATM’s. In addition, online banks give you the ability to handle several bank accounts (checking, savings, CDs, IRAs, etc.) from one site.

Disadvantages

The main issue for most people is that of trust. They may wonder if their transaction went through successfully or if they clicked on the correct button. The best way to overcome this uneasiness is to make a habit of printing the transaction receipt. Keep this receipt until your bank statement or online account view confirms that you have successfully executed the transaction.

Online banking sites can also take a while to start up and can be difficult to learn at first. Some banks require customers to provide some form of photo identification in addition to signing a form at one of their branches.

Clearly, online banking has both advantages and disadvantages.

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