Security First Network Bank was first fully-functional direct bank in the United States. It was insured by the FDIC (Federal Deposit Insurance Corporation) and provided the feel of an online financial institution based in the member of Atlanta.
The internet is no longer a novelty. No work is feasible without the use of the World Wide Web, within the domestic confines or your workplace. One of the main innovations of the net has been the possibility of online cash transactions. To elaborate, traditional banking /shopping methods have been replaced by online methods. This has facilitated an enormous change in regular life, mostly for the better. However, there are always two sides to a coin, and online banking has a few negatives associated with it as well. The paragraphs below elaborate on the pros and cons of online banking services.
In a nutshell, online banking offers similar facilities to traditional banking, sans the time and location.
With online banking, you can transfer money between accounts, pay bills, pay for shopping, and perform countless other facilities.
Online Financial Transactions, Seriously?
You will require an online banking account and account number (similar to your checking account in a regular bank). You will have your unique user ID and online password along with this. This provides you an entry into your account.
To do so, first, login to your account. Here is where you can see a record of all your previous transactions, your account balance, new features, etc.
You will find an option to transfer cash. You will be called for a choice of transfer, I.e, if you wish to transfer money to another American account of your own, or some other person’s American account, or to a company account, or an account outside the country, etc.
When you choose your option and enter the number and other details, your account balance is checked, and if there is a lack of cash, you’re promptly notified.
If not, your request is handled by the server through an SSL connection, and the database of the banking system is updated accordingly.
Anything that has to be done can be done quickly and easily. For instance, let us say the day’s agenda is to pay bills, deposit cash, and transfer cash.
These tasks may take you more than 4 to 5 hours without online systems. The same tasks will require a high of an hour with online banking.
You can monitor your cash flow and other transactions and stay abreast of the most recent techniques with a mere click of a button.
Since there are virtually no overhead costs, you’re offered low rates of interest on loans and higher rates of interest on savings accounts.
Since the transactions involve an enormous amount of money, experts who design the banking software make sure that complete protection is available to the system.
Passwords are protected by way of a virtual keyboard, there is digital signature involved, periodic notifications and validations are added, beside many other protection mechanisms.
However, as a customer, you are required to be ensure that the bank’s website has a valid security certificate. It has to be insured by the FDIC.
With traditional banks, you must have been through the woes of’ Oh, it’s a Sunday, I cannot go to the bank’ or ‘It’s past 6 in the evening, the bank must have closed for the day’ often.
With online banking, you can happily bid these woes goodbye, since they’re available 24X7, 365 days in a year.
And, there is no location constraint as well. You don’t have a physical structure as the bank, your bank is available where you need it-yes, in your hands.
Online banking is available on mobile applications and tablets as well, making it all the more convenient and easier to use.
Though traditional banks also offer many features, the frequency and variety is much more with online services.
Many online services offer different kinds of certificates of deposit (CDs) and low rates on mortgages.
Some other banks may offer loan calculators, financial planning tools, and other investment platforms.
You would probably be wondering about the simultaneous existence of such a pointer in the pros and the cons, but, to be frank, security is a double-edged blade.
While bank accounts are mostly protected, this security may or may not necessarily be completely reliable or permanent.
This is a major weakness of online systems; they’re always vulnerable to fraud, despite excellent security.
If your account isn’t protected, it is liable to be infiltrated upon and stolen. And, I do not think you need to imagine your reaction.
Most banks use intelligent encryption software and firewall protection; yet, cyber criminals aren’t reliable and may devise new strategies to hack bank accounts.
While most transactions are easy to handle, some may apply to a direct communication or meetings, instead of an online portal. This isn’t available with online banking.
Though most transactions are quick, some banks may have exceptionally outdated software that leads to slow transfer-so much so, that you may prefer traditional banking.
While location is a positive element in the scenario when you need ready access to your account, it is problematic when you require a physical structure to resolve your queries.
Undoubtedly, all the online services have the FAQ section as well as sufficiently long brochures to explain everything; yet, the absence of actually having to go to a building and carry out a transaction is sorely missed, in the event of certain transactions.
When it comes to personal banking, the first thing that you ought to be concerned about is the security service. You can be well assured that you will be able to conduct any of your financial transactions with ease and comfort with the internet banking services. With the latest technology improvements, the details of your account are now safely secured, allowing you to conduct either of the transactions. You can log onto the official website and conduct any of the fiscal transactions from there just be connecting your bank account. Additionally, you can even download the bank app onto your phone for a personal banking experience. You can utilize either of the services provided through a secured network through this app.
Traditionally, in order to utilize either of the bank services, you would need to address the bank. This can take hours, especially when you need to go to the bank. Additionally, you would likewise need to address the home branch bank to make transactions from your own account. You will have a great deal of limitations with restricted bank working hours. However, with the internet banking services, you can get any of your bank transactions in mere seconds just from the convenience of your home. All you got to do is connect your bank account with the official website and you can make of the financial transactions you want. Since your bank account is officially verified when you register the account online, you can easily make many transactions anytime you want. Additionally, you can do the same with the banking app.
You miss out on the advantage of actually going and checking out your account and depending only on the online portal with banks that have no physical location.
One of the primary advantages of traditional banks was the direct, face-to-face communication with those working in customer service.
Online systems don’t have a direct communication media; they have a great deal of customized web pages that solve client queries.
With traditional banks, the banker knows you as a regular customer, he was conscious of your transactional history and the manner in which your mind works. You are a just a number-among the several thousands that exist with online banks.
As mentioned before, online systems provide convenient access to customers. However, the convenience factor may or may not last long.
That is to say, since the system is online, it is submitted to security issues. That apart, it is, after all, a software. This means that it has to be periodically updated and tested.
Moreover, it may face such technical issues at any time, and you may be unable to access your account until the matter has been cleared or sorted out.
This issue doesn’t crop up in a regular bank; you have people and resources to ease out your problem.
Also, accessing online accounts requires one to have sufficient knowledge-even for simple transactions. It requires one to go through online tutorials. These, though clearly worded, may not be as convenient as a verbal explanation.
While dealing with any type of online service, we have to be careful, owing to the participation of plenty of money. Every entity has its pros and cons; it is of paramount importance that efforts be made to minimize the cons of online banking services, while using its advantages to the best.