Online Banking is the processing of banking transactions
through the medium of internet.
It's not to change your money habits. In its
place, in order to manage your finances more quickly and efficiently, and to
give you the option of bypassing the time-consuming, paper-based aspects of
traditional banking, it uses today's computer technology.
Origin of Online Banking
For the banking industry, the beginning of the Internet and
the popularity of personal computers presented both an opportunity as well as a
challenge.
Financial institutions have used strong computer networks for
years to computerize millions of daily transactions; today, at the point of
sale, often the only paper record is the customer's receipt.
Now that its
customers are connected by means of persona computers to the Internet, banks visualize
similar economic advantages by adapting those same internal electronic
processes to home use.
While helping to eliminate costly paper handling and teller
interactions in a gradually more competitive banking environment, banks view
online banking as a powerful "value added" tool to attract and retain
new customers.
Brick-to-click banks
Most large national banks, many regional banks and even
smaller banks and credit unions offer some form of online banking, variously
known as PC banking, home banking, electronic banking or Internet banking.
Those that do are sometimes referred to as "brick-to-click" banks,
both to differentiate them from brick-and-mortar banks that have yet to offer
online banking, over and above from online or whatever "virtual"
banks that have no physical branches or tellers.
Internet banking is usually conducted by means of a personal
computer (PC) that connects to a banking Web site through the Internet.
For
example, a consumer at home accesses a financial institution's Web site via a
modem and phone line or other telecommunications connection, and an Internet
service provider for example America Online, Microsoft's MSN Network,
Earthlink, Juno or AT&T WorldNet.
Internet banking also can be conducted via wireless
technology through either Personal Digital Assistants (PDAs) or cellular
phones.
With the help of Automatic Teller Machines (ATMs), telephones
(not via the Internet) or debit cards, electronic banking is conducted. Debit
cards give the impression like a credit card.
But contrasting from a credit
card, funds from your bank account will be removed immediately through a debit
card.
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