Internet banking has revolutionized the way people see the banking system. With the ease of use and mobility at fingertips, user experience has been magnified multi-fold. With so much to look forward to, there is no denying the fact that internet banking is here to stay or till the next revolutionary innovation is made. Yet, just like every other product, internet banking also has advantages and disadvantages.
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Here are some insights into internet banking:
The technology allowing you to remotely manage your financial accounts with the use of a mobile phone, laptop, computer or any other device that has internet access is called internet banking. Several functions like fund transfer, bill payments, cheque deposit, UPI, online shopping, internet banking are really easy because of the internet.
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However, wherever finances are involved, there is need to be cautious. Here are the major pros and cons of Internet Banking:
As there are no operational costs related to a physical setup, there are lower fees or sometimes no fees for deposits.
Online banking allows higher interest rates and helps save a lot of money. For example, the difference can be seen in the annual percentage yield that is generally upwards of 2% in online banking and 0.01% in the traditional banking system.
Even the penalties on early withdrawals and other partial transactions are less as levied in the physical transaction.
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Convenience is the biggest advantage of internet banking. With banks at your fingertips, there cannot be a better way to proceed with the banking functions. Almost all services are available in the internet banking version of traditional banks. Right from new account opening to the closure of existing accounts, each task can be performed easily.
You can easily keep track of your account and transactions and manage the bank account all on your mobile phone or laptop. Internet banking is not just about conducting business and transactions, but you can also raise queries, order cheque books, update personal details and make investments sitting at your home or office or even a coffeeshop.
4. Higher Security
High-end data encryption and robust firewalls protect financial data from being misused in the internet banking space. There are several layers of security present in the entire internet banking system that protects data from getting into the wrong hands.
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Several services like financial planning, budgeting, investing, forecasting, loan calculators, equity trading applications and platforms and analysis tools are present online. This has made all finance-related transactions easy and accessible. Off-late, the provision for online tax filing and ITR filing has also been upgraded to the internet banking system.
Here are some disadvantages of this technology:
The fundamental of all finances lies in trust. The customers trust the bank and its representatives with hard-earned money and when in doubt, are assured of security. However, with the growing penetration of technology, the human factor is lost. People no longer talk to each other, do not discuss their issues, good and bad experiences. When doubt arises, either the thought is put aside or google does the limited job of giving nearly related answers.
Customers who rely solely on internet banking tend to lose several perks and waivers. For example, the bank branch manager is one powerful authority who can levy penalties as well as take them off.
Technology is a man-made aid which has its faults. These faults can arise anytime leading to some duplications and ambiguities. Sometimes duplicate transactions take place leading to double deductions; this is where internet banking cannot help you. In such cases, you need to get in touch with the banker for clearance and reimbursement of the deducted amounts.
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Yes, internet banking is well protected by secured walls and encryptions, yet has its pitfalls. Cyber attacks and hackings are true evils when it comes to the security of your finances. There is a lot of malware available that allow hackers barge into the system and fetch your financial details. Apart from just money being stolen, identity theft is another crime that is prevalent. It is crucial that before opting for a particular bank’s internet banking facility, you must check their security policies and measures.
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