Advantages and Disadvantages of Online Banking

Bank Stories By Darlene December 18, 2017

The internet has become such a huge part of people’s lives for the past couple of years now. It can be used to connect with people from all over the world, it can be used for educational purposes, and of course, to buy things online which is indeed very convenient to everyone. It is possible because of online banking. With this, you can simply send money or receive money from just one click, you can pay the bills without going anywhere. This can actually help you maintain and organize your financial life. However, like every other thing, it has its own advantages and disadvantages, and here are some of them.

It is possible because of online banking. With this, you can simply send money or receive money from just one click, you can pay the bills without going anywhere. This can actually help you maintain and organize your financial life. However, it has its own advantages and disadvantages, and here are some of them.

“[su_quote cite=”John Ziniader” class=”cust-pagination”]The functionality of online banking has stagnated in recent years. Over the last five years, banks have chosen to focus on usability and look and feel rather than on key functionality enhancements.” [/su_quote]

ADVANTAGES OF ONLINE BANKING

• One of the best advantages of online banking is the fact that you can actually pay your bills wherever you are. This will help you most especially if you have had problems before when it comes to needing stamps or the check being lost in the mail. Almost every bank nowadays has an app where you can set it all up by filling out some necessary information and then you can simply choose that every time you pay a certain bill online.

There are still banks that won’t let you pay online, so you can consider paying online through the company, but these companies may somehow charge certain convenience fees. There are also some places where they will charge a certain fee for a debit card, but this won’t happen if you set up a direct debit. Most banks also allow their account holders to take a photo of their checks to deposit them right away. So all of these mean that you can totally handle all of it without needing to go to the bank.

• Another advantage of online banking is that it actually allows you to access almost the entire history of your transactions wherever you may be as long as you have access to an internet connection. This is probably the quickest way to see if a certain transaction has cleared your account. This can also help you out when it comes to checking the amount of a transaction if ever you lost your receipt. Through online banking, you can also check if there are unauthorized transactions, and you can resolve it quickly.

• With online banking, you may also use it for when you go shopping online as well. However, you have to make sure that you are shopping on a trusted site such as Amazon.

• One of the greatest advantage of online banking is you can send money to your family and friends using just your phone. Transferring money has never been easier, this may not be as fast because it will still need to go between financial institutions but it is indeed much more convenient for both you and the person you’re sending money to.

By partnering with fintech startups, banks will give their account holders the right measure of security and speed. Account holders can know that their money is safe, and they can enjoy the latest financial technology.

DISADVANTAGES OF ONLINE BANKING

• It is true that you can view and make transactions through online banking, but there are times when face-to-face transactions are required most especially if there are complex transactions and technical address complicated problems. There are banks who can call in experts to solve a particular issue, but international online transactions may be a little too difficult or sometimes impossible to solve.

• There are also a lot of things that cannot be done through online banking such as insurance and brokerage accounts. There are traditional banks who actually sometimes offer certain services to their loyal account holders like preferred rates or even investment advice with no charge at all.

• One of the worst downside of online banking is its security. We are currently in a generation where technology is everything, it is indeed great to make transactions online but the fact that it is online mean that genius hackers can actually see your transactions or even worse, take your money. Yes, there are some security provided but almost anything online can be hacked, even a government website.

Have you had any problems when it comes to sending or receiving money online? Or for any online banking transactions. Let us know in the comments if you know any advantages and disadvantages.