Advantages and Issues of Concern with Online Banking
Online Banking
Statistics show that there are hundreds of millions of people
use online banking, one of the fastest and most efficient ways
to manage your finances. Online banking eliminates the long
hours and wasted time while queuing at the bank. Paying bills
and taking care of any other financial matters, such as monthly
payments or money withdraws is now easier than ever. Although
online banking is not very old, as it only became popular in
2000, the attractiveness of this banking method placed it on an
ascending trend that doesn't seem to slow down at all. In fact,
millions of people are switching to online banking each year, as
the services and products become more attractive, cheaper and
more secure. The early history of online banking only offered
customers little control over their accounts. Today however, a
few clicks of the mouse will enable you to transfer money, pay
bills and change direct debit. Moving money in and out of the
account is easier than ever and standing orders can be created
in a flash. Most financial analysts believe that online banking
is the method that most of us will use in the near future. More
and more banks are developing virtual offices for their
customers and some are even creating virtual help desk personnel
and clerks to greet their online visitors.
Advantages and issues of concern with online banking
Online banking offers several advantages over traditional
banking. Better rates of interest, for example, are generally
offered by most banks that are hoping to attract more clients to
their online systems. Better interest rates on credit cards and
savings account are common with online banking and the utopist
0% credit card rate was first offered through online banks.
Existing accounts also receive better rates and today four of
the five best-paying current accounts come from banks that
operate primarily online. How come online banking is cheaper?
Well, the main reason is that the overhead is reduced, since the
institution is able to implement an automated system. Reduced
need for renting space and hiring staff also helps transfer some
of the costs of online banking to the clients, thus reducing
interest rates and offering better deals. Of course, the biggest
fear with online banking regards security problems. A few well
mediated stories of hackers emptying online bank accounts have
set their roots in our minds, and we can't seem to be able to
replace unfounded fears with hard facts. The 128-bit encryption
system used in online banking encrypts al data, before any
transfer is made, so that the contents of any file are perfectly
secure. Fraud guarantee is common with most good online banks,
so even if a hacker manages to breach your account, your money
is insured.