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Banks versus internet banking
With easy access to in internet, people
can conveniently do a number of
financial transactions over the internet
be it at home or office. This advanced
technological innovation makes life
simpler for several people including
businessmen, students, housewives and
professionals. However, even with the
advent of internet banking,
brick-and-mortar banks still exist.
Banks still continue to exist because
there are a number of customers who opt
for real banks for their transactions as
they feel more comfortable and secure.
Traditional banks that have started
internet banking have their set of
advantages as well as disadvantages. It
is a consumer’s personal choice to opt
the service he/she prefers. However, it
is necessary to know the personal
financial needs and keep all options
open so that the latest banking industry
trends can be known and opted for. One
may prefer using standard banks, but for
urgent transactions, internet banking is
the best option.
Standard Banking – Conventional banks
still use pen and paper to deal with the
various financial transactions. However,
most of these conventional banks have
begun online operations and also
introduced internet-only products in
order to compete with banks that are
purely online. Traditional banks are
known to provide services to old
customers but it is necessary from then
to also provide services to
internet-savvy, young consumers which
will aid in attracting more clients.
Traditional banks are preferred by
people whose major considerations are
personal touch and security.
Online Banking – Online banking or
internet banking is similar to doing
transactions in conventional banks. The
difference lies in the fact that a
computer is used in the place of phone
or paper for accessing account
information, for reconciling statements
and making payments. The need for
visiting a branch office is eliminated
as various financial tasks can be
accomplished with the convenience of
being at office or home.
The major advantage of using internet
banking is that it is cost effective.
Certain banks indict lesser rates when
their online services are used.
Moreover, since one does not have to
travel to a branch office, gas and money
is also saved. In addition to this,
banks offer more services and products
since the overhead expenses such as
paying tellers are eliminated.
For businessmen, professionals and
frequent travellers, internet banking is
an ideal option. As finances and urgent
matters need to be tracked frequently,
internet banking is helpful as accounts
can easily be accessed. The popularity
of internet banking is said to grow in
the years to come.
In addition to the convenience in
banking, the other major aspect that is
drawing people towards internet banking
is the enhanced level of security. All
online banks have security measures in
place which keep fraudsters and phishers
at bay. The usage of encryption of
information and digital signatures has
only increased the level of security
proved by banks to their consumers.
Therefore, consumers can now choose
between banking and online banking based
on their needs. Moreover, consumers can
also use both banking and internet
banking and avail services offered by
both. |
