E-banking is also referred to as online or internet banking. Electronic banking has been on the rise over the last decade and helps keep an organized financial life. You can easily check your account balance online, pay bills or move money from one bank account to another electronically.
This article looks at the benefits internet banking offer together with the risk you may face through e-banking.
1. Convenience: You can get 24-hour services as long as you have internet connections. Compared to normal banks which are open during business hours, e-banking services are available anytime everywhere.
2. Real-time data: You can get real-time account balance with just a touch of a few buttons. This makes them a faster, easier, and efficient means to organize your transactions.
3. Better rates: There are no unnecessary service fees and overhead costs thus allowing e-banks to charge better interest rates on loans and low mortgage charges.
4. Ease of use: It is easy to open an online account, fill forms and carry out any transactions. They have a user-friendly interface that makes it easy for consumers to interact with the online platform.
5. Extra Services: E-banking offer more services not provided in the traditional banking sector like investment analysis tools, forecasting tools, loan calculators among other services. You can pay mobile and utility bills through online banking.
6. Mobile capability: Many banking institutions are offering mobile-friendly websites which allow you to access your online account transaction through your smartphone.
7. Bank from anywhere: You don’t have to waste time queuing in long lines at the bank since all the transactions can be carried at the comfort of your home or anywhere across the world.
8. Electronic funds transfer: Funds are transferred from your account to another electronically upon your approval. Payroll deposits and automatic bill payments can be transferred at no or little cost.
9. Easily manage finances: You can schedule your recurring bills to be paid automatically at once per month making it easy to manage your finances.
10. Added security: You don’t need to carry cash with you or worry about the theft of your virtual wallet since payments can be done with debit or credit cards.
1. Security issues: We are in the age of computer hackers and identity theft. Despite the efforts of the banking institution to keep customers’ information safe, hackers can gain access to the system and steal customers’ sensitive information.
2. Banking relationship: There is no face to face relationship with the banking staff. Lack of personal relationship with the bank limits you from getting special services which can be offered at your bank local branch for example, when seeking financial assistance.
3. Limited services: Some E-banks may not offer services like insurance and brokerage accounts offered by traditional banks. You may not get special services offered to loyal customers like free investment advice.
4. Tight credit scores: Frequent use of online banks limits you from being picked for credit scores which can benefit you in the future. Keeping your credit score higher helps you opt for loans and other financial benefits and this is not possible with online banks.
5. Lack of awareness: You will not get information on tricks scammers, hackers and intruders are using to get your personal bank details.
6. Lack of anonymity: A history of every online transaction carried is stored in the financial transaction server and an intelligent service can have access to this information.
7. Account restriction: There is a maximum amount of money you can transact within a day and the number of times you can withdraw from a single online account.
8. Impulse purchase: With e-banking, you can fall into the trap of overspending since you have the extra money in the account affecting your budget. This is not the case with cash payments; with no extra money, you can’t purchase anything else.
9. Internet Accessibility: Internet accessibility is still expensive and inaccessible making it difficult to access your online account.
10. Transaction issues: There is some complex banking transaction that can only be done through face to face transactions thus you have to go personally to the bank to carry out the transactions.