The advantages of internet banking are mentioned here in this article. We are estimated to be on our way towards a truly paperless future. The physical money will most likely disappear, to be completely replaced by online transactions. But that future is not here yet. Notes and coins are still relevant, so are brick and mortar banks. But at the same time, online banking is thriving. More and more people are becoming increasingly dependent on online banking. That is because it offers a plethora of advantages over conventional banks.
What are the advantages of Online banking ?
There are certain limitations to online banking too, but the advantages are significant. In this article we will be talking about the advantages of Internet banking.
The most obvious advantage of online banking is that it is extremely convenient. There is no need to be physically present at a location. There is no tedious paperwork. No standing in long queues all day. All you need is a stable internet connection and you can do anything from checking your balance, to making transactions or even apply for a loan right from the comfort of your home.
2. 24/7 Availability
Physical banks operate only on normal office hours. Which can get you in quite a pickle if you want to do an urgent transaction past 4 pm in the evening. Online banking means you have the full resources of the bank available at your fingertips at all hours of the day and night. Midnight or high noon, it doesn’t matter. The virtual banks are open throughout the holidays, even midnight on New Year’s Eve. Granted this wouldn’t matter if you didn’t have access to an internet connection.
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The speed of online banking is incredible when compared to physical banking. For a conventional bank, first you have to get to the actual location, fill out the paperwork, wait in line, wait for the officials to look through and process the paperwork and go through a lot of red tape before you can get it done. In online banking, you can stay at home, type in your info, and Bam, there you have it. Most simple processes are automated, routed through computers and algorithms which give instantaneous results. It is among the top advantages of internet banking.
Computers don’t need the processing time or make errors like humans do. Online banking eliminates human error up to an extent, and eliminates the need to rely on human inefficiency, up to an extent. Computers don’t accidentally misspell your name in documents thereby causing you to get tangled in miles of red tape. It also eliminates your human error. Filling out physical paperwork is a tedious job in which accidental mistakes may occur, and these mistakes may cost you a lot of time spent rectifying them. Although the automated systems are inefficient at complex transactions, and require some human component for that, taking more time.
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5. Bill Payment
Most banks have systems that allow for online bill payment. It can also be done through E-wallets and UPIs. This makes the time consuming ordeal of paying your electricity, gas and other bills become an effortless task.
6. Eco Friendly
Any environmental benefits of E-banking that is enough to make a difference is still just a vision, but the possibility of a paperless future is possible only if online banking becomes widespread and successful enough. The internet may have it’s limitations and pitfalls, but it does good things for a sustainable future. Paperless transactions plays a part in helping the environment.
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7. Transaction History
It is particularly simple to check your transaction history through online banking. That whats and whens of your spending and deposits and transfers are available easily. You can keep track of your balance and spending easily, helping you to manage your budget and avoid overspending. You can also detect discrepancies in your transactions easily, thus detecting possible frauds or security risks. It is among the top advantages of online banking.
8. Money Transfer
Transferring money from one account to another is relatively simple with online banking. Especially today with the widespread usage of UPI apps, it takes literally just a click. Splitting the checks at restaurants and collecting petty debts owed has never been easier.
Online shopping has thrived with the popularity of online banking. The risks of Cash on Delivery systems can be avoided if necessary now. It does cause an uncontrolled spending of money though. There is a phenomenon in which virtual money seems to have less of a gravity attached to it than physical money. Overspending occurs a lot on online shopping platforms precisely for this reason. So it is important that you carefully keep track of your spending and your bank balance.
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10. Online Only Banks
Online only banks have no physical outlets. They offer all the same benefits as the traditional banks that operate online too, with some additional benefits. Since the overhead charges of online only banks are comparatively low, they offer lower fees and higher interest rates. They also offer excellent customer services. The drawbacks are that there are certain security risks associated with trusting online only banks, the question arises that if the website shuts down and they drop off the grid, your money may disappear too. They are also more vulnerable to hackers, although they do invest a lot in cyber security.
So, these were some advantages of online banking. Although the advantages of internet banking are many, online banking does have it’s limitations. There may be hidden convenience fees that you have to be on the lookout for. When you visit a physical bank location, you develop a personal relationship with your bankers, making it easier if you are ever in a bind. Online transactions are efficient, but also cold and ruthless. There is also the factor that to make deposits you would need to visit a physical branch or a CDM anyway. These limitations may be resolved in the future as online banking systems evolve and their use becomes widespread, but for now, physical banks are also necessary for at least certain needs.