Online banking is carrying out the bank transactions or
paying bills through the medium of the Internet. Thanks to technology, and the
Internet specifically, there is no need for us to leave the house. We can shop
online, communicate online, and now, we can even do our banking online.
With the advent of online banking, we can make deposits,
withdrawals and pay bills all by means of the click of a mouse. It doesn't get
much more convenient than that.
In fact, online banking is a somewhat new development. The
history of online banking only dates back to the late 1990s. But that does not
mean that you are using an unstable or unsafe service.
It is actually quite the
opposite; online banks are very alert to security issues, so in order to
protect all of their customer's information, they work incessantly.
Nowadays, the online banking industry become quite massive:
over 50% eligible Internet users have an online banking account and most don't
even know how it all started. And it really is that simple: you do not have to
go down to the bank since the bank is already on your computer desk waiting for
you to enter.
As soon as the Internet use became prevalent, the evolution
of online banking was happened. With the increasing number of computer using
people, online banking is more popular then ever today.
Powerful computer
networks are used to computerize millions of transactions a day and the only acknowledgement
the customer gets is an online statement that can also be sent via mail.
The website designed for the purpose of online banking will
inevitably be targeted by the spammers if the bank people put out a low-grade
security website that millions use each day.
Customers and consequently the
revenue generated from it will be lost with the bad publicity caused due to the
little mistakes committed that let the people lose their money.
With online banking, if your bank or credit union supports software
program for example Microsoft Money, QuickBooks, Quicken, or Managing Your
Money, or offers its own software (usually free), you store financial data on
your computer, transferring data between your computer and your bank's.
You can maintain your records by means of using your
financial-management program or bank-supplied software, view the updated
information about your accounts, and have the bank write checks from your
accounts to pay bills.
Nationally known banks such as Fleet Bank (www.fleet.com
), Bank of America (www.bankamerica.com ), and Chase Manhattan Bank (www.chase.com
), make available this type of online banking.
Difference between Online Banking and Internet Banking
In order to maintain your records and pay your bills, some
banks offer Internet banking that lets you to use the bank's software and
computers. Instead, you can go for your financial-management program.
The location of records is the major difference between the
online banking and Internet banking. Financial-management software installed on
your computer is supported by the online banks.
In contrast to that, Internet
banks provide software on their computer systems with no need to store records
or software on their own computers.
Banking services offered by the most institutions includes
the ability to:
- Fund
Transfer between accounts
- Apply
for a loan
- Account
Balances checking
- Transaction
Records viewing and printing
- Pay
bills
- Update
contact information
In the early days of 1990's when online banking was first
introduced, most banks used a very simple layout, which allowed users to sign
in, view their accounts and statements, and make transfers from one account to
the other.
When compared with today's online banking features, this was very
simple that allows doing all those previous online banking activities and also
arranging for a loan, setting up direct debits, and paying bills online--all
with just a few clicks of your mouse.
Banks view online banking as a powerful value-added tool,
which they can use to draw and keep hold of new customers-for both their
offline services and their Internet-only services. Online banking also abolishes
the cost of paper handling, which scammers can use to rip you off if they get
hold of the statement first.
What are the Infrastructure Required To Perform Online Bank Transactions?
In order to perform online banking transactions, you will require
a computer, access to the internet, and rarely software provided by your bank.
A majority of the larger banks now offer fully operational online banking for
free or a small cost.
The most sophisticated banking websites allow you to examine
your various credit card accounts, check out brokerage accounts, and even get
stock quotes at no cost.
With no facility to make online payments, smaller banks,
or branches may only allow you to view your account balance and transaction
history. As the online banking business progresses, hopefully so will most
banks.
Whether it is doing so by attracting new customers or by keeping insulating
older accounts with more security everyday, online banking is always increasing
in size,.
The future of online banking promises to be more security-based, although
there has not been many break-ins since its inception in the late 1990s;
however, people are always trying to force an entry, so security always has to
be the number one priority when setting up and looking for ways of how to make
better the online banking system.
Banks have our interests at heart and will
never jeopardize our trust that we have in them; without our trust, banks will
have no customers.
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