The terms Online Banking, E-Banking and Internet Banking are used as supplements. Online Banking is the one of the significant aspects of E-Financing. Online banking refers to the arrangement over the Internet of retail and wholesale banking services. Online Banking uses the internet browser for the UI and the Internet for information move and downloads of programming. So it has a prospective for decreasing sustain costs. For customers Online Banking gives current data and 24- hours-a-day admittance to banking services. The essential services given by online banks are transferring money among one’s own accounts, paying bills, and checking account balances Credits, handling, share exchanging, administration packaging, and a large group of other monetary administrations are added to these essential services.1
In the recent years, customers of banking corporations increasingly use technology and direct channels to utilize banking services. This phenomenon is evident worldwide. Expanding Online Banking services and the types of services, including banking via the Internet, Mobile phones, and using Automated Teller Machines (ATMs), make it possible to reduce the cost of services to customers, and easier for them to manage their activity independently and conveniently anywhere, at any time, through various channels, regardless of the working hours of the branches of their banking corporation. Further, the development and expansion of Online Banking services are expected to enable banking corporations to become more efficient over time.2
Banks have generally been in the cutting edge of saddling innovation to improve their products, services and proficiency. They have, throughout quite a while, been utilizing electronic and telecommunication networks for conveying a wide scope of significant worth-added products and services. The conveyance stations integrate direct dial–up associations, private networks, public organizations and so forth and the gadgets incorporate phone, Personal Computers including the Automated Teller Machines, and so on With the notoriety of PCs, simple admittance to Internet and World Wide Web (WWW), Internet is progressively utilized by banks as a channel for getting guidelines and conveying their items and administrations to their customers. This type of banking is generated as Online Banking, in spite of the fact that the scope of products and services offered by various banks differ generally both in their substance and complexity.3
Advantages and Disadvantages of Online Banking Services
| ADVANTAGES | DISADVANTAGES |
|---|---|
| An online account is simple to open and easy to operate. |
Understanding the usage of internet banking might be difficult at the first. That said, there are some sites which offer a demo on how to access online accounts (not all banks offer this). So, a person who is new to technology might face some difficulties. |
| It’s convenient, because you can easily pay your bills and transfer your funds between accounts from nearly anywhere in the world. | You cannot have access to online banking if you don’t have an internet connection; thus, without the availability of internet access, it may not be useful. |
| You do not have to stand in a queue to pay off your bills. Also, you do not have to keep receipts of all of your bills, as you can now easily view your transactions. | Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet. |
| It is available all the time. You can perform your tasks from anywhere and at any time, even at night or on holidays when the bank is closed. The only thing you need to have is an active internet connection. | Password security is a must. After receiving your password, change it and memorize it. Otherwise, your account may be misused. |
| It is fast and efficient. Funds get transferred from one account to the other very fast. You can also manage several accounts easily through internet banking. | Your banking information may be spread out on several devices, making it more at risk. |
| You can keep an eye on your transactions and account balance all the time. | If the bank’s server is down, then you cannot access your accounts. |
| You can get to know about any fraudulent activity or threat to your account before it can pose any severe damage. | If the bank’s server is down, due to the loss of network connectivity or a slow connection, then it might be hard to know if your transaction went through. |
| It’s a great medium for the banks to endorse their products and services. | You might get overly marketed, too, and become annoyed by notifications. That said, these can easily be turned off. |
| More online services include loans and investment options. | You might become annoyed by constant emails and updates. |
For citing this article, use:
- Baladevi, M. (2021). Impact of online banking services in sivaganga district.
References:
- https://www.coursehero.com/
- https://www.boi.org.il/
- https://www.rbi.org.in/
