21+ Pros And Cons Of Online Banking (Explained)

With the progression of financial technology, it became viable for traditional banks to offer their services online and make almost every banking experience easier for the customer. The online banking services that have made life easier include paying various monthly bills, transferring funds whenever needed and such others. 

Almost every need of monetary transaction need just a few clicks to be fulfilled. All you need is simply a device with working internet connection. After that you can register for and set up your online banking account with a few clicks and you are good to go and ready to avail all the luxury that online banking offers.

PROS OF ONLINE BANKING

  • ROUND THE CLOCK AVAILABILITY

Unlike the ways of traditional banking that has regular office timings of bank during which time you can perform all the transactions if you are physically present at the bank, online bank lets you perform any transaction at any time of the day and has no time constraint.

  • TIME EFFICIENCY IS NOTABLE

Performing a transaction through online banking does not take up any considerable amount of time. An online transaction happens very fast, in a matter of few minutes. You can send money across the country or check your bank statement using online banking.

  • PHYSICAL PRESENCE NOT REQUIRED

For the people working full time jobs, it is hard to keep up and be updated with their bank statement regularly or transfer fund at a short notice without harming their work life. Online banking is a life saver for these people as they do not have to harm their work in order to perform necessary banking needs.

  • EASY BILL PAYMENT AND RECHARGE

Gone are the days when one had to travel to the concerned office, stand in a queue and spend most time of the day just to pay a bill. Paying bills and doing recharges of internet, cable and other services have never been this easy. Online banking allows us to pay our bills anytime and from anywhere- be it a crowded metro or during office breaks.

  • EFFICIENT ACTIVITY TRACKING

When one performs a transaction physically from the bank, one is given an acknowledgement receipt which might be required for future purposes. With online banking, any transaction that has been made will be recorded. The customer can show this record as a proof of the transaction.

  • EASY TO OPERATE

The process of online banking is kept as simple as possible so that people who are not very comfortable or efficient at using technology, are also able to perform the banking tasks online. The websites the user friendly and guide everyone through the process every time. So even if someone gets confused, they can follow the instructions and do their work.

  • NO NEED TO STAND IN LONG QUEUES AT THE BANK

For nearly every banking transaction one needed to perform, they had to stand in long queues and wait for their turn. Online banking makes almost every banking task doable without actually visiting the bank. This speed up the process for the people whose work requires direct exchange with bank officials as people would not visit bank otherwise.

  • CHECKING BANK DETAILS ANYTIME

The ability of the account holder to check his bank details at anytime reduces the chances of misplaced transactions, frauds and the chance of any fraudulent activity getting caught faster is increased. It also helps the customer to confirm any transaction by looking at the bank details anytime.

  • AVAILS OFFERS AND CASHBACKS

A humungous number of companies have partnered with banks. Thus, there are always offers available on online banking. If you buy product from a certain company that has partnered with a certain bank and if you pay your bill online through that bank, you might get immediate discounts on your purchase or get a cashback which will be credited to your bank account later.

CONS OF ONLINE BANKING

  • LACK OF COVERAGE OF HIGH-SPEED INTERNET

Online banking requires high-speed and uninterrupted internet connection which is not available everywhere and to everyone. With a slow or no internet connection, you can not access any facilities of online banking.

  • THREATENED TRANSACTION SECURITY

Even with all the cyber protection and advanced encryption method, online transactions are still at the risk of getting hacked into. This a major threat for the people using online banking services.

  • DIFFICULT FOR NON-TECHNICAL USERS

Even with all the guidelines provided by the website to guide people through the process of online banking, old people who have been living far away from technology will have problem to go through the process.

  • REMEMBERING PASSWORD

Passwords play an important role in upholding the integrity of online banking. Everything is secured by a strong password that the user chooses. Remembering these lofty passwords can be quite a task as it is not safe to write them down anywhere in case it threatens the security of the bank account.

  • BANK SERVER IS DOWN SOMETIMES

All kinds of transactions or ongoing official procedures, be it offline or online will come to a halt if the bank server is down. You can make no emergency transactions when the bank server is down.

  • INCONVINIENT TO MAKE CASH DEPOSITS

Online banking might have tried to provide all the services of a physical bank, but cash deposits are still a problem. To make a cash deposit, one needs to be physically present at the bank.

  • NO PERSONAL RELATIONSHIP DEVELOPMENT

When someone visits the bank physically over time, they tend to develop a personal relationship with the bank officials whereas in case of online banking, the customer service agent is anonymous and would not know you from the next customer. In case of loan sanction and such other works, developing a personal relationship with the bank officials helps, the chance of which is not available in online banking.

Regardless the security issues, people tend to use online banking just for the ease with which it works and the time that it saves. The advantages of online banking are definitely overpowering and the security issues can be considered as exceptional accidents.

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